Recovery and Grievance Redressal
If a prized subscriber disappears or is unable to continue his subscription, then the foreman or the chitfund company tries ‘friendly’ persuasion/pressure to obtain whatever amount may be recovered from the ‘defaulted’ subscriber or nominees/sureties. Companies also issue legal notices for recovery and in extreme cases, where higher amounts are involved, they file civil suits in court. In case of demise of the prized subscriber, his nominee (mentioned in the application form) is allowed to continue the subscription. Though chit-fund companies take a lot of care in admitting a member, most companies see at least a couple of default cases and have to bear the losses of the same. As a subscriber, you may have one/more of the following grievances even though you have not defaulted in making payments/filing sureties: i) you are removed from the group ii) you have not received the auction money iii) installments are not being accepted by the foreman For the above cases, you will have to depend on state government machinery. The redressal will vary as per the rules framed for the purpose under the respective State Chit Fund Act.