Loan Recovery Rules: Nowadays it is common to take a loan for expenses like buying homes, marriage, studies or treatment. Especially, the trend of personal loan has increased rapidly as it is easily found. However, the strict condition of the repayment with the loan, the high interest rate and the forced recovery are also associated with not paying the arrears.
In such a situation, the role of loan recovery agents becomes important. But can these agents come to your home or office anytime? Can they give you mental pressure or threatening? The Reserve Bank of India (RBI) has issued clear guidelines regarding this.
Can recovery agents come home or office?
Yes, agents can come to your house, but this process should be civilized and ethical. Agents cannot come to meet forcibly late at night, in the morning or forcibly during office. According to RBI guidelines, the recovery agents can contact only between 8 am and 7 pm, that too without respect and without any kind of threats or pressure.
What can recover agents do and what not?
- Recovery agents can come home and give clear information about loan status and payment options.
- The borrower in the office can be contacted only when consent is taken before that.
- Recovery agents cannot use any intimidation, threatening or abusive language.
- If these rules are broken, RBI can also take strict action against banks and agents.
What are the rights of borrowers?
Under the RBI and the Indian Constitution, every borrower has been given some special rights. Let’s know about those rights in details:
1. Right to privacy:
Recovery agents cannot make your loan details public. Your information like mobile number, email, outstanding amount etc. can be shared only with authorized people.
2. Right to Fair Treatment:
You should be talked about in respectable and decent language. Any kind of threat, physical or mental harassment is illegal.
3. Right to Notice:
Before starting any recovery action, you must be given a proper notice, which should have complete knowledge of property auction, loan amount, outstanding interest etc.
4. Right to Complain:
If a recovery agent misbehaves or breaks the rules, you can file a complaint with the bank’s Grivence Redressal Team, Ombudsman or Police Station.
What to do if you still bother?
- Keep a record of every call, message and meeting from the recovery agents.
- Complain by writing an email or letter to the bank and keep its proof with you.
- If the bank does not help, contact the banking Lokpal.
- If the recovery agents threaten the assault, you can also register an FIR.
If a bank and its recovery agent break the rules, RBI can also take strict action against them. The RBI has the right to impose a fine on the bank and its agents or stop them from recovery in any area.
You are debtors, not criminals
Today, with the use of digital technology in the banking sector, the recovery process is being made less aggressive and more professional. Banks send EMI reminders through SMS, email and apps, which is decreasing for forced recovery.
Nevertheless, some agents adopt old intimidating methods. That is why it is important that it is necessary to be aware of his rights as a borrower. You should remember that you can be a borrower, but not criminals. The law protects your dignity and privacy.
Also read: Landlord did not return security deposit? What are the legal rights of the tenant