Are you mentally and physically drained by recovery agents' harassment? These actions will save you!

A recovery agent may be warned multiple times to maintain proper boundaries while communicating with a loan borrower. If these warnings are repeatedly neglected, the Reserve Bank of India (RBI) has issued strong and stern statements that must be followed by the harassing agents.

The RBI has clearly stated that any violation of the loan borrower’s privacy will result in grave consequences for the recovery agent. Banks also abide by this rule, but some recovery agents take this clause for granted.

Harassment, in itself, is a crime. Despite knowing that it is a crime with severe repercussions, some agents continue with their aggressive methods. It is more important than ever to make people aware of their rights to protection and privacy.

Know your protection actions:

Rights to Protection of Loan Borrowers Under Attack by Recovery Agents:

1. Understand their communicating behavior: Recovery agents are not allowed to use abusive language, threaten, or intimidate physically. If they do, you can report them to their bank or seek legal help that not only helps in negotiating your loan but also communicates directly and deals with the recovery agent on your behalf. The law ensures that recovery agents must follow a respectful and lawful process.

2. Identifying their interrogation tactics and personal data violation: Loan borrowers have the right to privacy when dealing with loan recovery and repayments. Recovery agents are not allowed to call at odd hours or share confidential loan details with unauthorized people. They can only contact you between 7 AM and 7 PM. If they violate this, you can report it. This right helps protect you from unnecessary stress and invasion of personal space and does not affect your planning to make future payments.

3. Fair and correct information communicated, no fabrication: Every loan borrower deserves fair treatment during the loan recovery process. Agents must clearly identify themselves and explain the details of the debt and repayment options. They should also allow you to negotiate repayment terms. If you feel mistreated, you can file a complaint with the bank’s grievance cell or higher authorities to ensure fair treatment.

4. Document your experience: Having proper evidence will save time and prevent unnecessary backlash. Addressing your experience in every form or medium that clearly proves you were harassed is beneficial and helps in reporting the concerned recovery agent as soon as possible. This includes WhatsApp messages, phone calls, mail threats, voice recordings, video recordings of physical torment, and any other proof showing their aggressive or threatening attempts.

A case study of a real person who experienced Recovery Agent Harassment

A case about a girl who experienced harassment from recovery agents. To respect her privacy, the names have been changed.

Problem faced: Priya from Mumbai had previously worked at a reputable company but lost her job during her pregnancy and was subsequently denied opportunities to return to work. While she was employed, she took out loans of 70-80 Lakhs rupees for personal needs and her husband’s business and managed to pay her EMIs on time. However, the financial strain intensified due to her husband’s struggling business, which yielded no returns. Her situation worsened when her husband’s business started incurring losses, and she had to take maternity leave during her pregnancy.

Seeking assistance and solution implementation: Collectively, they could not manage to pay the EMIs and cover their expenses. She constantly faced harassment compounded by regular messages, calls, and threats from various lenders. The harassment peaked at the end of May, especially from a Bajaj Finance agent who made frequent threatening visits. By the time she approached us, she was deeply in debt, having defaulted on several EMIs, leading to relentless calls from 12 to 15 different lenders daily.

Despite providing clear evidence of illegal visits and unprofessional conduct by Bajaj Finance agents through emails and documentation, the company initially hesitated to address the issue. The situation escalated when these visits were directed to her elderly mother’s home, where the agent behaved inappropriately and made intimidating statements. Despite informing the agent of her absence and requesting a more convenient time for discussion, he persisted and even pressured her mother into speaking with his manager under stress. In response to these distressing events, Priya reached out to legal experts to take immediate action.

The experts meticulously documented incidents with recordings and WhatsApp conversations and promptly filed complaints through official channels and social media platforms, including Twitter and email. Additionally, they escalated the matter to the National Commission for Women (NCW) and the senior citizen cell, emphasizing the severity of the threats made against her and her daughter.

Results and outcomes: Thanks to the experts’ persistent advocacy and diligent efforts, Bajaj Finance finally took notice. Within 20-25 days of filing our complaints and maintaining regular follow-ups, they achieved a positive resolution. The intrusive visits ceased, and Bajaj Finance acknowledged their oversight. They reinstated respectful communication practices and implemented corrective measures to prevent future incidents.

This case highlights the importance of knowing your rights and taking prompt action. Priya’s proactive approach and the support of legal advocacy were crucial in resolving her situation.

Conclusion: Loan borrowers should never tolerate harassment. If you face similar issues, report them immediately and seek legal assistance. Protect your rights and ensure a fair resolution process. Knowing your rights can save you, and being aware of where help can be taken really takes away the pressure of finding solutions.