PR discussions: Re: [prpoint] Gold Loan Scam Prevention

Hi there,

To-day the word 'self regulation' is totally missing in advertising, particularly such as Gold Loans. There was a time,p romising 500% growth in few years, by investing in Teakwood plantations. Here too, many leading ad. agencies minted money as commission - none of their employees had invested in the scheme.

In Kerala there are 'Chit Funds' who would lend money to individuals (selling vegetables,fruits,fish and such other consumr goods) at Rs.5/- int. for one day for rs.100/-. The poor guy earns rs.110/ by evening working hard, and earns rs.5/- as next day he has to go him again for another rs.100/-,as no Bank would lend him that quickly.

There are other 'cheat companies' who offer 5 more int. than banks and even issue advance cheques, which bounce later. None would take them to court, as most of the investors, have put their no.2 money, which the'cheat company' knows well. Further the most of investors are holding high positions in Govt. depts. and all such investments are 'benami'.

Years back RBI tried their best to regulate them, but failed miserably.

The same holds with Mutual funds. I invested in a mutual fund rs.40000/- few years back and bnow I am told its nav is rs.27,000/-. This mutual fund is an arm of a Publicsector Bank having HO at New Delhi and have completed over 100 years.

Hence they say, out of every 10 born, one is a sucker ?

any takers ?

s.n.surkund

From: S. Narendra <sunarendra@gmail.com>
To: Prpoint Group <prpoint@yahoogroups.com>
Sent: Friday, February 10, 2012 11:38 AM
Subject: [prpoint] Gold Loan Scam Prevention

Srinivasan:
Indians have enormous amount of gold.Quite a few chit fund companies are advertising that they will lend easy money against such household gold asset.Celebrities are irresponsibly endorsing their Ad.This is nothing but pawnbroking by other means.Terms and conditions arenot disclosed in these Ads.RBI justnow has announced that it will bring about some rules to regulate such loans.
Just as SEBI required mutual funds that that they should add to their Ads a caution that investors should carefully read the TOR and any such investment is risky,Shouldnot RBI require companies that offer gold loans to add similar caution to their Ads?
Some gold loans charge as much as 40%. agents are enticing villagers to pledge their gold with false promises.Govt and Parliament will wake up one day after a scandal on this subject breaks out.
S.Narendra