There are numerous cases in which recovery agents who try to collect dues on behalf of the banks are acting oppressively and illegally. In recent years, an 81-year-old woman has been severely threatened and has received 375 threatening calls concerning her children's unpaid bank charges.
To show an example, there have been many instances of this kind. She subsequently moved to the police and filed a case against these agents. These cases show that in India, recovery agencies create absolute fear.
A recovery agent is looking for customers and organisations, which owe banks payments. Many of these recovery agents collect duties on a fee or percentage of the amount owed from the banks' customers. In general, these agents are third parties, since they are not part of the original contract.
People face humiliation not only in front of families or friends but also in genuine risks. There are several situations in which customers have committed suicide or faced serious medical conditions because of the threatening behaviour of the recovery agents.
Legal solutions available to defaulter:
Filing a complaint at the police station: A complaint has to be filed against the Bank and the recovery office. The magistrate can be approached in case the police do not file a complaint.
- An injunction suit against the bank and recovery agents: A civil court action against the bank and recovery organisation may be brought before the civil court with an ad-interim relief. You should be able to ensure that banks and recovery agencies do not visit the house to recover dues.
- File an objection with the Reserve Bank of India: After receiving some public objections against the banks, the RBI prescribed certain norms for the recovery agents and noted a few instances against the harassing recovery method to regulate the approach to defaulters. This enables the defaulters to contact the organisation and file a legal complaint if the defaulters feel undermined.
- Defamation suit: If the debt recovery depends on incorrect data which caused the lack of a person's CIBIL score, the bank, and the recovery organisation might have to face a defamation suit.
- Trespass objection: In case of the illegal invasion of a house by the Bank's recovery agents without approval, a complaint of a violation of individual rights may be lodged at this time.
- Extortion grievance: When the recovery agents have recovered the money forcefully, a case of extortion can be filed.
- Complaint to your Bank: Almost every bank has a department for complaints. The customer can move and talk to this department. Usually, the client must wait 30 days to deal with the matter or to receive a reply after registering the complaint.
- The banking ombudsman: If the Bank fails to address this problem/grievance, the Bank Ombudsman can be approached within the specified days. RBI selects a senior body that resolves complaints by customers. To appeal for settlement between the Bank and the customer, the Ombudsman should make the legal decision. Credit card complaints are submitted to the ombudsman.
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