Dealing with loan repayment can be stressful, and this stress often worsens if you’re facing harassment from banks or Non-Banking Financial Companies (NBFCs). Recovery agents calling at odd hours, making threats, or using unethical means to recover debt is not only stressful but also illegal. If you’re facing such harassment, it’s essential to take action. Here’s a simple guide on how to file a complaint when you are being harassed by banks or NBFCs.
Step 1: Know Your Rights as a Borrower
Before filing a complaint, it’s crucial to understand your rights. The Reserve Bank of India (RBI) has issued strict guidelines to protect borrowers from harassment:
- Recovery agents can only contact you between 8 AM and 7 PM.
- They are prohibited from using abusive language, threats, or violence.
- They cannot harass or intimidate your family, friends, or workplace.
- They must treat borrowers with respect and dignity throughout the recovery process.
If any of these rules are violated, you have the right to file a complaint.
Step 2: Document the Harassment
Start by documenting every instance of harassment. This will help you build a solid case when you file a complaint. Keep a record of:
- Phone calls: Time, date, and content of the conversation.
- Any abusive or threatening language used.
- Messages, emails, or letters you receive from the bank or recovery agents.
- Visits to your home or workplace by recovery agents, including the time and behaviour of the agents.
Having evidence strengthens your complaint and helps the authorities take appropriate action.
Step 3: File a Complaint with the Bank or NBFC
The first step in addressing harassment is to file a complaint directly with the customer grievance cell of the bank or NBFC. Most financial institutions have a dedicated grievance redressal system. You can submit your complaint:
- In Writing: Write a formal letter or email explaining your situation and providing details of the harassment.
- Online: Many banks and NBFCs offer online portals where you can submit complaints.
- Customer Care: You can also call the bank’s customer service and lodge a complaint.
Ensure that you mention your loan account number, the nature of the harassment, and the steps you have already taken (if any).
Step 4: Escalate to the Banking Ombudsman
If the bank or NBFC fails to address your complaint satisfactorily within 30 days, you can escalate the matter to the Banking Ombudsman. The Ombudsman is an RBI-appointed authority that resolves disputes between customers and financial institutions free of charge.
To file a complaint with the Banking Ombudsman:
- Visit the RBI’s Banking Ombudsman website.
- Download or fill out the online complaint form.
- Submit the form along with supporting documents (like records of harassment) either online, via email, or in person at the nearest Banking Ombudsman office.
The Ombudsman will investigate your complaint and may order the bank or NBFC to take corrective action.
Step 5: Approach Consumer Protection Forums
If the issue remains unresolved even after approaching the Banking Ombudsman, you can file a case with a consumer protection forum. Consumer courts handle cases related to unfair practices, including harassment by recovery agents.
To file a complaint with a consumer forum:
- Prepare a legal notice to the bank or NBFC, detailing the harassment and demanding redress.
- File your complaint at the District Consumer Forum.
- Provide all the documentation related to your case, including proof of harassment and the steps you’ve taken so far.
Consumer courts have the authority to award compensation for mental harassment, financial loss, and other damages caused by unethical practices.
Step 6: Consult a Lawyer
In severe cases, if the harassment persists or escalates, it may be wise to consult a lawyer. A legal expert can guide you on filing criminal charges against the bank or NBFC for harassment, and help you seek further legal remedies such as damages for emotional distress or defamation.
Conclusion
If you’re being harassed by banks or NBFCs over loan repayment, remember that you are protected by law. By documenting the harassment, filing complaints with the right authorities, and escalating the matter when needed, you can stop the harassment and protect your rights as a borrower. Don’t hesitate to take action—there are clear legal avenues to address these issues and safeguard your peace of mind.
Get in touch with us today at bankharassment.com and embark on your path to financial freedom
