The RBI has issued several regulations on the functioning of recovery agents that banks hire to collect overdue loan amounts. The primary objective behind this is to put a halt to the harassment a borrower faces due to the actions of these agents. Here are some rules and regulations that loan recovery agents must follow when performing their duties.
To ensure that borrowers are not harassed by the recovery agents, RBI has framed several rules. These are as follows:
However, to stay away from the hassles of dealing with loan recovery agents, try to repay the credit on time. Wondering how to do so? There are multiple ways for this.
There are numerous ways that can help you ensure timely repayment of your loan. These include:
By paying EMIs on time, you can also reap unlimited benefits. Know them to stay motivated and repay the credit without much delay.
Some major benefits of repaying your credit on time include:
It becomes the responsibility of the bank to ensure that the loan recovery agents they are hiring abide by the RBI rules. They can face legal consequences if the borrower lodges a complaint of harassment against these agents.
Yes, you have the option to file a police complaint against the bank or recovery agents. Upon doing so, the banks will have no option but to put a halt to the unethical and unprofessional activities of these agents.
Borrowers have the flexibility of selecting the time when these agents can call, text or visit them. Also, the agents cannot disclose the details of the conversation to any third party unless and until the borrower allows them to do so.
The roles and responsibilities of a loan recovery agent include locating the residential address of borrowers, developing plans for collecting the overdue amount and negotiating the debt repayments between creditors and debtors.
The defaulters can receive messages from loan recovery agents on their mobile numbers or WhatsApp under special circumstances. Also, they cannot contact a debtor before 7:00 a.m. and after 8:00 p.m. and on holidays.
It becomes mandatory for a bank to disclose the details of these recovery agents to borrowers. Also, they should ensure that these agents abide by the RBI regulations and do not harass the borrowers.
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