Personal Loan Settlement

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What actions of the Bank or lender recovery agent are considered harassment? Excessive Contact: Making multiple contact attempts throughout the day, especially during early mornings or late evenings. Social Media Intrusion: Trying to reach out to individuals through social media platforms like Twitter and Facebook. Forcing Major Financial Decisions: Pressuring borrowers to sell their homes or take on additional credit to repay the debt. Threats and Contacting Relatives: Threatening or persistently contacting family members or relatives of the borrower. Rotating Debt Collectors: Employing multiple debt collectors in succession to pursue the borrower for payments. Misleading Communication: Using documents or business logos that appear official but are not, such as sending letters that resemble court forms. Unreasonable Payment Demands: Pressuring the borrower to pay the entire debt amount or larger instalments that they cannot afford. Public Embarrassment: Attempting to publicly shame or embarrass the borrower. Third-Party Communication: Revealing the borrower’s debts to another person or using intermediaries to convey messages, such as neighbours or relatives. Moreover, Please bear in mind that recovery agents often have ambitious targets to meet and may also have incentives tied to the quantity and size of collections. This makes them a motivated group, and dealing with them can be quite challenging. #harrassment #recoveryagent #bank

Unable to Repay Loan, Recovery Agents are harassing What to do? In many situations,recovery agents appointed by banks may resort to harassment, which is illegal and also unacceptable. To handle recovery agents’ harassment effectively, here are some steps one can take: a) File a Complaint: If a recovery agent crosses the line of decency, individuals have the right to file a complaint. Initially, contact the bank branch and inform them about the issue. If there is no response, file a police complaint. Lodge an official complaint against the bank and the recovery agency, also ensuring the police acknowledge the receipt. b) Seek Legal Protection: Individuals can file a civil suit for injunction against the bank and recovery agent in court. This will prevent bank officials and recovery agents from visiting the individual’s home for debt recovery, providing relief from harassment and buying time to repay the debts. c) Complaint with the Reserve Bank of India (RBI): If facing threats or helplessness, individuals can file a complaint with the RBI. The RBI has issued guidelines for banks and recovery agents to prevent harassment. d) Defamation Suit: If the debt recovery is based on false information leading to a damaged credit score and societal name shaming, individuals can file a defamation suit against the bank and recovery agency. e) Trespass Complaint: If recovery agents enter one’s house without permission, individuals can file a trespass complaint for violating their rights under Section 441 in The Indian Penal Code f) Extortion Complaint: If recovery agents forcefully collect money, an extortion case can also be filed against them. ICICI Bank vs Shanti Devi Sharma & Ors, 2008: In this landmark judgment, the Supreme Court emphasized its stand that banks can’t send musclemen to recover advances from defaulters, subsequently compelling them to take their lives. It’s important to remember that harassment and criminal intimidation are illegal. individuals have the right to protect themselves and seek legal recourse against such persons.