Often people take loans from banks to meet their needs, but many times they fail to repay the installments. There have been incidents of misbehavior by the recovery agent of the bank for failing to pay the installments. The main reason for this is the lack of knowledge of the rules among the people. As per law, bank agents cannot extort money from borrowers.
Banks have the right to recover their money. For this it is necessary to follow the guidelines of RBI. According to the Reserve Bank, banks can take the services of recovery agents to recover their money, but these limits cannot be exceeded. The Supreme Court has also criminalized intimidation, misbehavior and harassment through agents for recovery of loans.
If the recovery agent harass, threatens, assaults you, then you have the right to complain to the bank as well as to the police. Failure to pay the installment comes under the purview of civil dispute. In such a situation, the bank or any of its recovery agents cannot arbitrarily with the defaulter.
Time to go to the defaulter’s house and call
According to the rules, the time for visiting the defaulter’s house and calling the bank officer or recovery agent is from 7 am to 7 pm. After this, you can make a complaint to the bank or RBI about calling and coming to the agent’s house.
If a person does not deposit the installment for 90 days, the bank has to issue a notice to the bank. By issuing a notice, the bank will give time to the defaulter to deposit the loan within 60 days. Even during this period, if he does not deposit the installment, then the bank can start the process of recovery of the loan.
Recovery agent’s arbitrariness
When someone fails to repay the installment, he accepts his mistake and bears the arbitrariness of the bank or recovery agent, but, just as banks have the right to recover the loan, in the same way the borrower has been given the right by RBI. If people are aware of their rights then recovery agents will not be able to harass them. In case of harassment, complaint can be made to the police and consumer court and seek damages.
