Protection Against Loan Recovery Harassment
Recovery agents cannot threaten, abuse, publicly shame, or use illegal force to collect loans.
🗣️ What this means for you
If you have a loan default, the lender can recover money only through lawful methods. Recovery agents cannot threaten you, call at unreasonable hours, abuse family members, shame you publicly, or use force. You still owe lawful dues, but harassment is not allowed.
Step-by-Step Action Plan
Record call logs, messages, names, numbers, and dates of harassment.
Ask the agent for identity, authorisation, and official recovery notice.
Complain to the lender grievance officer in writing.
Escalate to RBI Ombudsman if the lender fails to act.
File a police complaint if there are threats, abuse, trespass, or force.
⚖️ The Relevant Law
RBI Fair Practices Code and recovery agent guidelines (0)
Regulated entity recovery conduct rules
"Banks and NBFCs must ensure recovery agents follow fair practices, proper identification, and lawful conduct while contacting borrowers."
⚠️ Punishment / Penalty
Banks or NBFCs can face regulatory action and customer complaints. Serious threats, assault, stalking, or extortion can be reported to police.
Required Documents
- 📄Loan account details
- 📄Recovery messages or call logs
- 📄Agent name or number
- 📄Complaint to lender
- 📄Police complaint if filed