Loan repayment can be a stressful process, but facing harassment from recovery agents or banks can make it far worse. While banks and Non-Banking Financial Companies (NBFCs) have the right to recover overdue payments, they must follow certain rules laid down by the Reserve Bank of India (RBI). Recognizing the signs of harassment is the first step to protecting yourself. Here’s how you can identify if you’re facing harassment and the red flags to watch out for.
- 1. Frequent and Odd-Timed Calls
One of the most common forms of harassment is frequent calls at odd hours. According to RBI guidelines, recovery agents can only contact you between 8 AM and 7 PM. If you’re receiving calls outside of these hours, it’s a clear violation of your rights.
- Agents should not call you multiple times a day or bombard you with messages.
- Harassing calls at odd hours, especially during weekends or holidays, are a sign of inappropriate behavior.
If agents disregard these time limits, you can file a complaint with the bank’s grievance cell.
- Use of Abusive Language or Threats
Recovery agents must maintain professionalism and courtesy during their interactions with you. If they use abusive or threatening language, it’s a clear indicator of harassment.
- Using foul language, personal insults, or demeaning comments is not allowed.
- Agents making threats of harm, such as taking away your belongings or involving the police, is illegal unless they have a court order.
Such behavior can cause mental distress and is grounds for filing a complaint against the bank or NBFC.
- Harassment of Family Members or Neighbours
Recovery agents are only allowed to communicate with the borrower directly. If they reach out to your family members, neighbors, or colleagues to pressure you into repayment, it’s a clear violation of RBI norms.
- Agents must not disclose your financial situation to others or attempt to embarrass you publicly.
- They should not visit your workplace without your consent or harass your employer.
This type of behavior is a sign of overstepping professional boundaries and can be reported to the authorities.
- Visits Without Prior Notice
Recovery agents must respect your privacy and cannot show up at your home or workplace unannounced. They are required to provide prior notice before any physical visit to discuss repayment or collect dues.
- Unscheduled visits, especially in a threatening or aggressive manner, are a violation of your rights.
- If agents show up with the intent to intimidate you or your family, it’s a sign of harassment.
Always insist on written communication and ask agents to schedule a meeting at a convenient time for you.
- False Claims or Misleading Information
Recovery agents should provide accurate information about your loan account, the outstanding amount, and the recovery process. However, some agents may attempt to mislead you with false claims to pressure you into paying.
- Agents claiming that they have the right to seize your assets without a court order are misleading you.
- If agents provide wrong information about the loan amount or threaten immediate legal action without following due process, it’s a red flag.
Always verify the information provided by agents with the bank’s official communication channels.
- Pressure Tactics for Immediate Payment
While agents have the right to request repayment, they cannot use aggressive pressure tactics to force you into paying immediately. This includes tactics such as:
- Demanding immediate payment without offering time to arrange the funds.
- Threatening to take legal action within unrealistic timelines.
- Insisting on signing documents under pressure or offering you informal settlements that aren’t in writing.
These tactics are intended to scare you into making hasty decisions. Always insist on having everything in writing and take time to review any payment plans.
- Excessive Fees or Unexplained Charges
Banks or NBFCs may attempt to levy extra charges or fees during the recovery process. If you notice unexplained charges or fees being added to your account without proper explanation, this could be a sign of unethical behavior.
- Request a detailed statement of your outstanding balance and ask for explanations of any new charges.
- Banks should provide a transparent breakdown of all dues and charges.
If you find discrepancies or unexplained amounts, raise the issue with the bank’s grievance redressal cell.
Conclusion
Dealing with loan recovery is challenging enough without facing harassment. By recognizing these signs and red flags, you can take the necessary steps to protect yourself. Remember, you have the right to respectful and transparent treatment during the recovery process. If you experience any of the above forms of harassment, don’t hesitate to file a complaint with the bank, approach the Banking Ombudsman, or seek legal assistance. These steps will help you stand up to unfair practices and ensure that you are treated with the respect and dignity you deserve.
Get in touch with us today at bankharassment.com and embark on your path to financial freedom
