Recovery agents harrassment was not accepted by the loan company
4 months ago
I took a loan from an NBFC. I could not able to pay my loan for couple of months. For that they harrassed me like anything. Their recovery agents called me, my friends, my relatives for my payment and they scolded me over the call. I went into mental depression and in a frustration I lost my job too. I have call recordings where they scolded me. How to proceed legally to fight on this ?
A.Dear Client,
The RBI has given guidelines for fair recovery practices which focus on making the recovery process fair and not oppressive towards borrowers. Based on the guidelines the recovery officers can not resort to coercion or use of force in the recovery process.
For the harassment you went through there are multiple sections of the Indian Penal Code that can be used to start criminal proceedings against the recovery officers. Section 506 (Concerning Criminal Intimidation), allows the defaulter to make a complaint at the police station against the recovery agent and recovery office.
Thank You
The RBI has given guidelines for fair recovery practices which focus on making the recovery process fair and not oppressive towards borrowers. Based on the guidelines the recovery officers can not resort to coercion or use of force in the recovery process.
For the harassment you went through there are multiple sections of the Indian Penal Code that can be used to start criminal proceedings against the recovery officers. Section 506 (Concerning Criminal Intimidation), allows the defaulter to make a complaint at the police station against the recovery agent and recovery office.
Thank You
Helpful
Helpful
Share
A.Dear Client,
In the case of Magma Fincorp Ltd. v. Rajesh Kumar Tiwari, (2020) 10 SCC 399, the Supreme Court had “banned taking over possession by recourse to physical violence, assault and/or criminal intimidation by deploying recovery agents by the lender unless they obtained appropriate order in accordance with law and such orders were required to be executed only in accordance with the law. The regulatory authority RBI has strictly prohibited the use of abusive language, intimidation, or any form of harassment in the loan recovery process. Recovery agents should not resort to coercion or use of force in the recovery process. In case you face any threat or harassment from the Debt Recovery Agents of the Bank, you need to make a written complaint to the local police station against the recovery agents and inform the concerned Bank attaching a copy of the complaint made to the local Police Station and file a criminal suit u/s.503 of IPC against the recovery agents and the concerned Bank. Apart, file an online complaint for the same cause of action to the Grievance Cell of RBI in the web link: https://cms.rbi.org.in/cms or contact RBI Toll-Free Number 14448 and lodge a complaint over alleged harassment by recovery agents of the concerned Bank. Alternatively, an email can be sent to [email protected] stating the grievance/complaint in detail. Further, a quick counseling session with a certified credit counselor can help you to discover your options and choose the right path forward to repay your debt.
In the case of Magma Fincorp Ltd. v. Rajesh Kumar Tiwari, (2020) 10 SCC 399, the Supreme Court had “banned taking over possession by recourse to physical violence, assault and/or criminal intimidation by deploying recovery agents by the lender unless they obtained appropriate order in accordance with law and such orders were required to be executed only in accordance with the law. The regulatory authority RBI has strictly prohibited the use of abusive language, intimidation, or any form of harassment in the loan recovery process. Recovery agents should not resort to coercion or use of force in the recovery process. In case you face any threat or harassment from the Debt Recovery Agents of the Bank, you need to make a written complaint to the local police station against the recovery agents and inform the concerned Bank attaching a copy of the complaint made to the local Police Station and file a criminal suit u/s.503 of IPC against the recovery agents and the concerned Bank. Apart, file an online complaint for the same cause of action to the Grievance Cell of RBI in the web link: https://cms.rbi.org.in/cms or contact RBI Toll-Free Number 14448 and lodge a complaint over alleged harassment by recovery agents of the concerned Bank. Alternatively, an email can be sent to [email protected] stating the grievance/complaint in detail. Further, a quick counseling session with a certified credit counselor can help you to discover your options and choose the right path forward to repay your debt.
Helpful
Helpful
Share
Read Related Answers
Multiple unsecured loan defaults
Dear Client,
Once a borrower fails to repay his debt, the Lenders/FIs initiate a routine course of action for recovery of the loan/debt from the borrower following the provision under the SARFAESI Ac...
Unfreeze
Dear Client,
Once a cybercrime scam or fraudulent transaction is reported online to the National Cyber Crime Reporting Portal(NCCRP), on the instruction of the Cyber Crime Cell, the investigating tea...
For bank loan
Dear Client,
the loan amount must be repaid by the legal heirs of the deceased or the nominee by the deceased if the assets would be frozen by the bank. there is no other legal remedy to non payment
Bankruptcy and Debt
Dear sir,
You may join any reputed NGO and render your personal service where you can get at least free accommodation and boarding.
Strong Legal Notice--Recovery of amount
Dear Client,
Unfortunately, there are no legal remedies for illegal issues. A contract for an illegal purpose is void from the beginning and in case such an illegal act is revealed from any source, bo...
Read Blogs on Bankruptcy and Debt
Bankruptcy and Debt Lawyers
Find Lawyers by Location
