“A defaulter’s legal rights include receiving notice, fair debt collection practices, grievance redressal, seeking legal assistance, fair credit reporting, the right to privacy, the right to a fair hearing, and the right to restructure one’s loan,” says Abhinay Sharma, managing partner at ASL, a law firm.
“Recovery agents cannot make threatening or anonymous calls, send inappropriate messages to borrowers in any form, must obtain borrowers’ consent before visiting them at their homes or workplaces,” says Sharma.
If your loan overwhelms you, reach out to financial advisors or a credit counselling agency.
How to deal with recovery agents
Document everything. Keep a record of all calls, emails, and text messages from the recovery agent. This will help you if you need to file a complaint later
Ask the agent to identify themselves. Make sure you know who you’re talking to and who they’re representing
Ask the agent to stop contacting you. If the agent is harassing you, politely ask them to stop contacting you. If they continue to contact you, you can file a complaint.
File a complaint. If the recovery agent is harassing you, you can file a complaint with the Reserve Bank of India (RBI), the bank, or the police
Get legal help. If you’re being harassed by a loan recovery agent, you may want to consider getting legal help. A lawyer can help you understand your rights and file a complaint if necessary
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