Recently, we heard the news that one person was beaten to death. Another committed suicide, fearing harassment from these agents. Sure, a borrower must make timely, regular payments on debts. But does it mean defaulters can be harassed and treated inhumanly?
Banks are tough on customers for the first time defaulters to make sure the mistake doesn’t get repeated again because beyond the second month, recovery is tough.
Bank recovery agents go about the process of recovery in a robotic manner, without checking whether the customer is good or not. A bad customer could handle the pressure from recovery agents. He is probably used to it and has nothing to lose. But on the other hand, a good customer caught in a difficult situation could have a tough time dealing with the embarrassment and harassment from these nasty agents.
If you come under the nasty rap
As an upright, moral customer, the first thing you can do is not to get browbeaten by these recovery agents.
The Reserve bank of India, the Indian Banking Association and Indian courts have provided explicit guidelines for this kind of situation. Remember -
Your actions should be
Banks are tough on customers for the first time defaulters to make sure the mistake doesn’t get repeated again because beyond the second month, recovery is tough.
Bank recovery agents go about the process of recovery in a robotic manner, without checking whether the customer is good or not. A bad customer could handle the pressure from recovery agents. He is probably used to it and has nothing to lose. But on the other hand, a good customer caught in a difficult situation could have a tough time dealing with the embarrassment and harassment from these nasty agents.
If you come under the nasty rap
As an upright, moral customer, the first thing you can do is not to get browbeaten by these recovery agents.
The Reserve bank of India, the Indian Banking Association and Indian courts have provided explicit guidelines for this kind of situation. Remember -
- Banks and NBFCs (Non Banking Financial Companies) are responsible for their own as well as their agents’ actions, says the RBI.
- They may outsource debt collection, but must ensure that recovery agents carry a letter authorising them to undertake such work.
- Individuals employed by these agencies must carry an identity card when on debt collecting duty. Customers can thus check these two documents to verify the agent's authority.
- All written communication sent by the agency should contain the name and contact details of the concerned officer.
- The agent shall contact the customer between 7 am and 7 pm only, and interact in a civil manner. Any untoward incident will result in termination of further visits.
- Bank/ agent may not resort to threats or harassment to anyone for debt collection. Nor may they pass false/ misleading information intending to humiliate anyone publicly (‘anyone’ includes the customer, his family members, friends, colleagues or referee).
Your actions should be
- Should you repeatedly experience problems from your recovery agent, do not hesitate to walk into a branch and explain your circumstances to the manager.
- Carry a formal letter to fulfill the requirement of written communication. If matter is not resolved talk to Consumer Grievance Cells in bank
- If you sense any threat to your life or reputation, do not hesitate contact the police.
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