Doing a series on how clients get ripped off! Each part is independent of the previous one. The first one was about Education. So continuing the education rip off.

First we spoke of the ‘urban’ boy / girl who is on a self rip off mode. Take the case of a carpenter whose daughter is the first graduate in the whole community. Poor thing! she does not know what to do.

She along with her father approach the educated man they know – he is a lawyer practicing in Kanpur (change it for any town without too much of corporate presence it does not matter). The lawyer does not have a clue of what is happening in corporate India, but reads a few magazines. He says doing an MBA is fine. She (let us call her Miss. Pavam). Miss Pavam has done her BSc. in Microbiology.

The father says ‘But I cannot afford to pay Rs. 9 lakhs for an MBA degree’. Father and daughter have no clue what an MBA degree can (or cannot) do for her. She sees a ‘coaching class’ which prepares people for the MBA entrance. She joins it. Fees Rs. 42,000. Father withdraws from National Savings Certificate (bless the government, it is a nice instrument – @#$% what the planners say).

3 weeks into the training a bank manager visits them. Just like that to meet them. 5 weeks into the training one institute based out of Pune (could be Gurgaon, Kolkatta, Mumbai, …) visits them and does a sale pitch.

‘Our college had a 100% placement last year. The average salary that our students got was Rs. 3.9 lakhs, and the companies which came are Hdfc bank, Icici bank, Kotak bank, India Bulls, Indiainfoline, Max New York life, ….and others. ‘

Ms. Pavam has fallen. The glossy pictures, the swimming pool, the amphitheater, all do their trick. She then realises that the fees is Rs. 7 lakhs. She is crestfallen.

The next day the bank manager and the owner of the classes do a joint presentation. A loan is available for Rs. 7 lakhs. Repayment starts after she gets a job. EMI is only Rs. 14,000 a month.

The owner explains – see you will get a salary of Rs. 33,000 per month, Rs. 3000 will be the rent. Rs. 14,000 emi – you can comfortably afford. Nice. House papers pledged loan got.

Cut to post degree trauma.

No good companies came to the campus. One company said will take you on an experimental basis. Will pay Rs. 8000 and will pay for Pavam’s cell phone. She is shocked. This will not pay for the EMI. Forget rent and food @ Bengaluru. Company makes her travel, but does not pay conveyance. Company makes her travel – pays for ticket does not pay for food.

Shattered, battered does not know what to do. Does rounds of consultants. Visiting faculty says ‘we have a hiring freeze’.

dejected, sad, lost in Bengaluru goes back to Kanpur. Mom worried – how to find an educated boy for marriage?, Dad worried about EMI.

Miss Pavam is watching 3 idiots on Sony TV.

How did this rip off happen? No education regulator? Would it have made a difference? Greed and Fear. Rule – both G and F rule over all other emotions.

Remember the Max New York Life ad?

‘Advice tho sabhi deten hain, aap kiski sunte hon?” – a brilliant question.

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  1. As usual, straight, and in the face. When are you sharing the details the PMS experience of the folks you’ve interacted…. that should be another interesting piece on the rip-offs

  2. Talking of rip-off. I sincerely hope you do a rip-off series of medical profession too. Given that they are some sort of your favorite, don’t see it coming though!

    Some pointers for the rip-off:
    1. How come so many tests get ordered even for the simplest diagnosis when they are not needed (To find out if they were really needed just ask another doc, one who didn’t earn the commission from the those test laboratories for your tests)
    2. How come even simple things like a uncomplicated delivery cost upward of 50k and cesarean cost around 1 lac.
    3. How do you expect a simple ‘joe’ in this system to afford curing a complicated life threatening disease like say cancer etc.. when even the average class one MNC doesn’t provide more than 3-4 lacs of group insurance.
    4. Actually there are many points, one just need keep the eyes open and have some insider knowledge like you posses on finance industry.

    I think in todays system the doc profession is one of the most unregulated and chaotic one (and not so noble anymore) and no one probably dare take their wrath including the high and mighty!!


  3. I guess, this is happening across small towns in India. It is for these reasons, people who are poor remain poor. Is it ignorance ? Is it awareness ? Is it G or F? I guess, all things combined.

    One feels the same way for Personal Finance too; awareness is very low even among highly educated professionals. In fact, they seem to make even better mistakes, having a feeling of false competence just because of education pedigree.

    More than that, is there anyway we can provide help? I would like to, in areas where I feel I have some expertise. Can readers here help?

  4. no clue about doctors. I found a doc whose advise is AVOID DOCS…so seriously have only met about 10-12 docs who had s…..d up their finances. How they earned their money…I have no clue at all…:)

    so this series will not include docs unless some doctor wants to do it..

  5. Oh Yes! that advice absolutely makes sense, but unlike so many other things, this one is probably not in one’s control!

    Irony is, their fraternity works almost like a one way street of a mafia gang. No doctor ever dares to do a rip off. Ever found any docs blog who is willing to speak on the subject with integrity? do let me know if u find one! (don’t tell me they are technically challenged)

    Large chain CEO’s come on news channels and claim there is no discrepancy between pricing of insured and un-insured patients. But when common man walks in with an insurance, it’s totally a different story!

    Off late they really suck!!

  6. Talking of Rip Offs

    Today I came across a Banker, who had been ripped of by a broker in a tier III city.

    Left me wondering what the banker was doing in the financial sector.

  7. this is quite common. Bankers hardly know anything outside their domain. So they are sitting ducks for others. Brokers of course are a great breed. The real good (old houses) do not want fresh business. The new ones help you trade furiously. SEBI regulates over regulated businesses like mutual funds and life insurance. Ignores the brokerage business because it does not understand. It is a great world out there. Mera Bharat Mahan.

  8. Oh yes, I can vouch for that coming from a family which has 4 bankers including uncles,father,father in law and also myself being a banker for a brief period in my career. They really have a very limited view of their domain depending on which divisions they worked in etc etc…

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