Bank send mail to HR

Dear Client,
Banks can contact employers to confirm employment details at the time of processing of the loan application. However, once a loan is approved and disbursed, directly contacting HR to pressure a loan defaulter into repayment is generally not considered fair practice and may be considered harassment. Banks have other alternative for recovering debt from the defaulted borrowers by serving legal notice, offering one time settlement, approaching a Civil Court/Debt Recovery Tribunal etc, But, sending information about a borrower's loan default to their workplace can be considered as unfair practice and harassment, once an aggrieved defaulter litigate the matter in the court. As per the RBI Guidelines, Banks/NBFCs are strictly advised to adhere to the guidelines/fair practices code during the loan recovery process. Informing HR of the borrower about a loan default would likely violate these guidelines/fair practices code. Hence, a complaint against the against the Bank can be made online to the regulatory authority RBI, online at https://cms.rbi.org.in. An aggrieved borrower can make a complaint against the bank before the Consumer Forum seeking compensation for unfair trade practices and harassment. Further, a quick counseling session with a certified credit counselor can help you discover your options and choose the right path to resolve or settle the matter with the lenders.