Dealing with recovery agents: Know your rights, study RBI guidelines

Escalate complaint to bank grievance officer, ombudsman, and finally consumer court

Noida-based Anuj Singhal (name changed on request), 35, found himself in a difficult financial situation when his business began to flounder. He could not pay his personal loan EMIs on time. That marked the beginning of his ordeal with recovery agents. 

 

“They stand outside my house for hours, raising a ruckus. They also attempt public shaming by informing every passerby about the default,” says Singhal.

 

Despite stringent guidelines from the Reserve Bank of India (RBI) on how recovery agents must conduct themselves, and court rulings penalising even leading banks for their agents’ misconduct, harassment of borrowers continues.

 

Brace for tougher