Status as on- 09/10/2021 

Introduction

In attempt to recover the dues from the borrowers the agents had several oppressive and illegal conducts. In lieu of recovery of money the agents often exceed their limitations and harass the borrowers.

There have been several instances which proved that recovery agents are feared in India. Recovery agents are the third party to the borrowers and the banks hire them to cover the dues but as they are not contractual bound, they take harsh steps which leave the borrowers humiliated in front of the family and society.

Harassment by the agents leaves the borrowers in distress state of mind and some have even committed or attempted to suicide.

Harassment

The term ‘Harassment’ exists as a form of bias. It involves any undesired material or spoken behaviour that displeases or embarrass an individual. It covers a wide range of behaviours of an offensive type. It exist usually assumed as behaviour that demeans, humiliates or embarrasses one, and it happen particularly label by allure unlikelihood fashionable agreement of public and moral fairness. Such behaviour influences the physical and insane happiness of one.

If the lender attempts to do any of the following, it could be viewed as harassment to recover the money owed. These actions include:

1. If the lender/agent is reaching people multiple times each day, or promptly in the first part of the day or the late evening.;
2. If the lender/agent is seeking people on social media platforms, for example, Twitter and Facebook;
3. If the lender/agent is putting pressure on people to sell their home or take out greater credit;
4. If the lender/agent is threatening or continuously contacting relatives of the borrower;
5. If the lender/agent is utilizing more than one debt collector, in turn, to pursue people for instalment;
6. If the lender/agent is using desk work or business logos that give off an impression of being official when they’re not, for instance sending people letters that seem as though they represent court forms;
7. If the lender/agent is pressurizing people to pay all the money, or in bigger instalments when they can’t afford to;
8. If the lender /agent tries to humiliate people in front of the general public;
9. If the lender/agent is telling another person about your debts or using someone else to pass on messages, for example, a neighbour or a relative.

Fair practices codes have been laid down by The Banking Codes and Standards Bureau of India (BCSBI).Points to be known to the borrower if recovery agent comes at your door:

• The Banking Codes and Standards Bureau of India (BCSBI), an autonomous body of banks, has laid down fair practices code. According to BCSBI’s Code of Customer Rights, lenders are supposed to communicate to the lenders before they initiate recovery proceedings.
• The borrowers must be aware about the details of the recovery agents who will handle the case and the agents must be aware about the fact that they can contact the borrower between 7:00 AM to 7:00 PM and intimation must be given to the borrowers about their visit.
• The privacy of the borrower must be respected and the borrowers must decide the place if the recovery agent wants to meet.
• An authorization letter from the must be carried by the recovery agent for the meeting.
• If the borrower is not contactable, the recovery agent can approach friends, relatives, or anyone else, to trace the borrower. It’s the customer’s duty to keep updating the contact details with their lender.
• Whenever the calls are to be made to the borrowers by the agents, the calls need to be recorded and maintained. In case the borrower complains the lender regarding the harassment done by the agent, the institution can go through the calls to investigate.
• Even if after several requests to the institutions the agents harass the borrowers, in such case FIR can be filed against the agents.

Conclusion-

Harassment by the bank and agents are situation which makes an individual suffer through mental and sometimes physical damage too. Keeping such situation in mind a conduct is been laid for the agents to perform under. However the borrowers must not avoid talking to the agents which will solve the situation at initial stage.

Disclaimer-The above article is based on the personal interpretation of the related orders and laws. The readers are expected to take expert opinion before relying upon the article. For more information, please contact us at rera@centrik.in

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