CONSUMER Vs COLLECTION AGENTS

Bank loan recovery agent harassment refers to illegal, unethical, or coercive methods used by banks or their authorized recovery agents to force borrowers to repay loans. In India, such actions are strictly regulated by RBI guidelines and court rulings. Below is a clear, structured description you can use for awareness, complaints, or legal drafting.

How Bank Loan Recovery Agents Harass Consumers

1. Verbal Abuse & Threats

Using abusive, insulting, or humiliating language

Threatening arrest, jail, or police action without legal basis

Threats to seize property without court orders

➡️ This violates RBI Fair Practices Code and Supreme Court directions.

2. Repeated & Unauthorised Calls

Calling multiple times a day

Calls made early morning or late night (before 8 AM / after 7 PM)

Calling from unknown or private numbers

➡️ This amounts to mental harassment and invasion of privacy.

3. Public Humiliation

Visiting the borrower’s home, workplace, or neighborhood

Speaking loudly so neighbors, colleagues, or employers are informed

Putting stickers, notices, or banners on the borrower’s house/vehicle

➡️ This is illegal and violates the right to dignity.

4. Intimidation & Physical Harassment

Standing outside the house for long hours

Following the borrower

Using body language or gestures to intimidate

In extreme cases, physical force or manhandling

➡️ This is a criminal offense under IPC.

5. Misrepresentation of Authority

Pretending to be bank officials, legal officers, or police

Using fake legal notices or forged documents

Claiming court orders that do not exist

➡️ This constitutes cheating and criminal intimidation.

6. Pressure on Family Members

Calling or threatening spouse, parents, children, relatives

Forcing family members to repay without legal liability

Harassing elderly parents or women

➡️ Family members are not liable unless they are guarantors.

7. Ignoring Genuine Difficulties

Refusing to acknowledge job loss, illness, natural calamities

Denying restructuring or moratorium options

Forcing immediate lump-sum payment

➡️ Banks are required to follow humane recovery practices.

Legal Position in India

✔ RBI Guidelines prohibit:

Harassment

Coercion

Public humiliation

Use of muscle power

✔ Supreme Court of India:

Recovery must be peaceful and lawful

Banks are liable for actions of their recovery agents

✔ Relevant Laws:

IPC Sections 503, 506 – Criminal Intimidation

IPC Section 509 – Insulting dignity

IPC Section 420 – Cheating

Consumer Protection Act, 2019

Right to Privacy (Article 21)

What a Consumer Can Do

Record calls and preserve messages

Send a written complaint to the Bank’s Grievance Cell

Escalate to Banking Ombudsman (RBI)

File complaint with Police for criminal intimidation

Approach Consumer Court for compensation

If you want :

Draft a legal complaint against recovery agent harassment

Prepare a notice to the bank / RBI Ombudsman

Help convert this into affidavit or consumer court petitioner.