Loan recovery harrasment

Dear Client,
As per the RBI Guidelines, Banks/NBFC/FI are advised to ensure that the contracts with the recovery agents do not induce the adoption of uncivilized, unlawful, and questionable behavior in recovery process. In the context, reference may be made to (a) Circular DBOD.Leg. No. BC.104/ 09.07.007 /2002-03 dated May 5, 2003, regarding Guidelines on Fair Practices Code for Lenders (b) Circular DBOD.No.BP. 40/ 21.04.158/ 2006-07 dated November 3, 2006, regarding outsourcing of financial services and (c) Master Circular DBOD.FSD.BC.17/ 24.01.011/2007-08 dated July 2, 2007 on Credit Card Operations. Banks/NBFCs are strictly advised to adhere to the guidelines/code mentioned above during the loan recovery process. In the given situation, filing a complaint against the recovery agents of the MobiKwik at the local Police Station, a copy of the said complaint should be sent to them. Further, serving a legal notice to the MobiKwik, a complaint against the loan recovery agents appointed by them MobiKwik who adopted uncivilized, unlawful, and questionable behavior in recovery proces despite payment of dues, can be made to the regulatory authority RBI, online on its grievance redressal portal under the Integrated Banking Ombudsman Scheme at https://cms.rbi.org.in. In a recent judgment, the Hon'ble Patna High Court in the case of Dhananjay Seth v. Union of India, 2023 SCC OnLine Pat 1393, decided on 19-5-2023 directed the Superintendent of Police of all the districts in the State of Bihar, to ensure that within their jurisdiction no recovery agent of the Bank and Financial Institution might take the law into their hands without an order of the competent court of law. Further, a quick counselling session with a certified credit counsellor can help you to discover your options and choose the right path forward to settle the debts/loan with the lenders/financiers. If required, consult with an Advocate to understand your rights and remedies in the given situation.