Good News! Loan recovery bullies can't bother borrowers.

In the recent past, RBI, the apex body of our financial matrix, was submerged in complaints from aggrieved parties who were tormented by the unethical practices of hired recovery agents. In the wake of increasing intensity of complaints, RBI has finally issued some guidelines that will guarantee some relief to the borrowers who are flustered by the harassing tactics of loan recovery agents.

Thanks to the guidelines, now borrowers can mention the actions of a recovery agent. In case the agent fails to act within the assigned framework of conduct, they can lodge complaints against them. Although that doesn't mean that any proceedings against the bank's recovery agent will relieve the borrowers form repaying the borrowed amount, this would at least reduce the chances of recovery agents trying to resort to uncalled-for activities.

As per Law Quest International, a prominent law firm, “a borrower will be fully aware that the bank can't forward his case to a recovery agent if the borrower has filed a complaint for grievance proceedings.”- (Source : The Economic Times). Further, a recovery agent cannot plunge into the recovery procedures for an account until the complaint is finally disposed off or the bank is assured, substantiated with full proof, that the claim is baseless. Even if the case is forwarded to a recovery agency, the banks are required to furnish all the details of the respective agency. Furthermore, the facility of the recorded version of the text and calls, done on the borrower’s consent, will ensure that no harsh or intimidating calls are made by the recovery agents.

To make your case strong, all you need to do is verify the whereabouts of the agents before entertaining them. You must examine their proof of identity and note down the time of visit and other details necessary to validate their association with the bank. Now, banks will be accountable for the actions of their agents and the responsibility for maintaining the code of conduct of their agents and ensuring that they adhere to the guidelines would lie with them. You will now also be able to inform the banks about any harassment faced, and even knock at RBI's door if the trouble goes way beyond your tolerance level.

Finally, these guidelines will give voice to the quintessential borrower. It will give him a chance of being heard and protest, if the recovery agents dare to exceed the limit. With these new measures in place, one should never get subdued by recovery agents, with their use of coercive measures like abusive language, blackmailing, calling at odd hours or may be creating a scene in the nearby locality should not deter a borrower. Remember one thing, in the democratic nation of ours, the law is always by your side, so never give up. You should not fear the insignificant elements of the society and be prepared to fight for your right.