How to Handle Recovery Agents? Can Recovery Agent Harass Debtor?- 2022

Many people are harassed by loan app recovery agents, therefore, we have come up with an article to solve their issue. People just need a proper approach to understand how to handle recovery agents.

In the past two to three years, the market has seen an upsurge in Loan Apps in India. There are various legit as well as non-legit loan apps that are working. In 2020, during the Pandemic people lost their jobs and didn’t find an alternative to solve their financial issues.

At that time many loan apps came to the market to solve this issue of financial debt with another debt. The process of getting loans become easy due to the help of technology.

After sometimes people saw the negative aspect of instant loan apps. Almost 90% of Loan Apps working are not legit. It means they are not governed by any law or they are not registered with any government entity.

Many apps have just created a platform that has started to create problems for people. The biggest problem people face is the methods used by Loan Apps to recover their money. It leads to harassment and in some cases, people opt for suicide after facing pressure from such loan apps.

Here, we want to clear that even if you have taken a loan from XYZ Loan App still you don’t have to fear them. We want you to become strong here and face them. They take the advantage of people’s fear and use them against their victims.

Today’s topic How to handle recovery agents will show you the path to fight recovery agent harassment.

What is Recovery Agent Harassment/ Cyber Bullying?

It happens when a debt collector uses inappropriate ways to collect their money. Sometimes they call you and start abusing you on phone. Another trick is they use your mobile data and use your image and circulate the same by putting abusive words or demoing content.

Recovery agents also blackmail their victims by contacting family members and abusing them. It can be done via phone calls, emails, text messages or in person. The goal of the agent is to get you to pay back the debt ASAP. To do it, they use to try all hook and crook methods.

Using images of a person and putting them up on social media and watermarking demoing content is nothing but cyberbullying and people need to understand that no matter what, recovery agents cannot bully you.

Customer Rights against Recovery Agents- RBI Guidelines

To know how to handle Recovery Agents people need to understand their Rights first. RBI also issued some Guidelines for Recovery agents.

  • Any lending platform or its agents do not resort to intimidation or harassment of any form either verbal or physical to any person in the debt collection effort.
  • They are not allowed to send any kind of inappropriate message or images in any form of media including anonymous calls. Decent reminder calls are only allowed between 8 am to 7 pm.
  • Debt collectors cannot call you at work if they know that you are not allowed to receive personal calls there.
  • They cannot harass or threaten you in any way.
  • They cannot use obscene or abusive language when communicating with you.
  • They need to carry bank identification and authorization letter.
  • They cannot contact you before 7 am and after 7 pm.
  • If a debt collector does any of these things, you can file a complaint with the RBI.

In other words, humiliating publicly or intruding upon the privacy of the debtors’ family members, referees and friends are not allowed at any cost.

These regulations are for all the recovery agents working in India as it is issued by RBI, any recovery agent who is not following this regulation is committing a crime and is punishable by law.

How to deal with Loan Recovery Agent Harassment?

1. be strong and gather all your courage as you have done nothing wrong and you are about to fight not for yourself but also for society and the laws of India.

2. try to explain your word to the agent in a humble manner and give them confidence that you will cooperate in the procedure and that things can be done professionally. Also, ask them to follow the above codes of conduct.

3. if also, the agent is not ready to follow the codes of conduct you can directly call 100 and 1091(in the case of women). You can also go to your nearest police station.

4. in case of harassment by messages or WhatsApp you can file the fir on, this is a lengthy process in which you will get the help in 2-3 days. But always file a complaint through this as in long run this complaint will help you.

5. if any agent contacts your friends or family, directly assume them as fraudsters or scammers and take the police’s help as they are committing crimes on a personal level and this is beyond the rules of recovery.

6. take your family in confidence as these are mere scammers and don’t give them any money. Try to cut communications with them in every way possible.

7. not repaying the loan is not a crime but harassment and cyberbullying is a crime under the IT act 2000.

8. In all these processes don’t forget to accumulate all the objectionable contents in such a form that they can be used as evidence.

9. Last but not least, always discuss your problems with someone you are close to, it may be family or friends. Scammers always want you to keep their profile low so that they can pressure you and manipulate you to pay them money.

What are the Legal Remedies available to stop Harassment?

  • Filing a complaint at the police station;
  • Filing an injunction suit: A civil injunction suit can be brought to court for temporary protection against the Bank and for compensation for wrongdoing.
  • Filing a defamation suit: You can file a defamation suit against banks and collection agencies if they have violated RBI policies and attempted to defame you.
  • Trespassing suit: You can sue the bank directly for trespassing if a collection agency enters your home or office without prior permission or approval.
  • Complaint to your bank: If you are faced with any kind of harassment by an external debt collector, you can raise this complaint directly to the Banking Ombudsman.
  • Complaint to RBI

Final Words

Fear is the root cause of many problems in human life, therefore, don’t let any recovery agent take the advantage of it. First, don’t fear them, if anybody bullying you then you must report it to Police first. If you want us to talk with recovery agents on your behalf, share your issue and details with us on our email id

Also, share your views on this by commenting in the comment box. Please share this article with others and make them also aware of their rights. Together we can fight all the online scams together.

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