How to Handle Harassment from Recovery Agents

The loan recovery is a legal process and the creditors have every right to recover the loan amount due from the debtor. There are various methods in which these creditors try to recover the loan, such as 

1. Making spam calls or messages. – The recovery agents may make multiple phone calls and send messages constantly to the debtor at odd hours using multiple phone numbers, in order to harass them for non-payment.
2. Unauthorised visits to the debtors neighbourhood – They may make unauthorised visits to the debtor’s neighbourhood, humiliate the debtor, and create a ruckus in the neighbourhood. These agents often behave rudely towards the defaulters.
3. False threatening – The agents may falsely threaten to seize property, take legal action, or cause damage to the debtor’s property.
4. Verbal abuse – This includes the use of foul language, threats, or verbal insults intended to intimidate the debtor.
5. Physical intimidation – The recovery agents may resort to physical threats or cause damage to the property of the debtor or their relatives.
6. Privacy violations – These agents may disclose the debtor’s personal details to others and cause damage to their reputation.

The recovery agents often adopt other unfair practices to recover the loan amount from the defaulters. 

How to deal with harassment?

1. The first and foremost advice is to document every little thing. Save call recordings, messages, or any other threatening communication. Note down the recovery agent’s name, and the date and time of such communication. If they visit you in person, try to record a video recording, and ask the agent either to have a peaceful conversation in person or to leave your neighbourhood.
2. Inform the banks/NBFCs that you have been subjected to unwanted harassment and unauthorised visits, and demand an immediate end to such behaviour. 
3. Consult a lawyer to take legal action against the banks/NBFCs for violating your rights. The lawyer will guide you through the situation and provide assistance. They can help you draft a legal notice to the creditors and recovery agency, warning them of legal consequences if the harassment continues.
4. Filing of a complaint 
   1. Civil Complaint 

Step 1: Inform the creditors of the issue and wait for one month

Step 2: If no action is taken, send a follow-up or remainder stating that the matter will be escalated to the RBI Ombudsman.

Step 3: Even upon serving the remainder letter, if there is no action taken within the month, to solve the issue, file a complaint under RBI ombudsman with the help of a lawyer. 

1. Criminal Complaint – If the harassment is extreme, lodge an FIR under reverent BNS sections for criminal intimidation, defamation and stalking.

    2. Under no circumstances you should panic due to harassment. Stay calm, think clearly, and handle the situation with presence of mind.

Know your rights 

There are many rights that a debtor possesses. Here are a few important rights that every person should be aware of. Under the Reserve Bank of India Guidelines every recovery agent must follow certain rules:

1. No harassment or abuse (no threats, repeated calls at odd hours, no use of foul language)
2. Calls should only be made between 7AM and 7PM
3. The recovery agent should respect your privacy
4. The agent should contact you only at the specified place of your choice
5. Inappropriate occasions such as bereavement in the family or such other calamitous occasions would be avoided for making calls/visits to collect dues.
6. The recovery agent should have the authority to make any contact. Without such authority they should not make any contact with you. 
7. The interaction should be in a civil manager.