Threatening and harassment by collection agents of credit card,or loan is very common. A collection agency is a business that pursues pa...
Threatening and harassment by collection agents of credit card,or loan is very common.
A collection agency is a business that pursues payments on debts owed by individuals or businesses. Most collection agencies operate as agents of creditors and collect debts for a fee or percentage of the total amount owed.The agency will then take a percentage of the debt that is successfully collected upon successful collection.
The Question comes how to handle them and what are our rights?
The Indian Banking Association (IBA) has laid down the following guidelines for recovery proceedings.
- The customer should be contacted ordinarily at the place of his/ her choice or at his/ her residence or even at the place of business/occupation between 7 am and 7 pm.
- Bank representatives should avoid inappropriate occasions such as bereavement in the family while making calls/visits to collect dues.
- The bank should ensure that all written and verbal communication with its borrowers is in simple business language and should adopt civil manners for interaction with borrowers.
- Written communications, telephonic reminders or visits by the banks' representatives (including recovery agents) to the borrowers place or residence can be used as loan follow up measures.
- The bank will then give a written notice about any legal or other recovery measures including repossession of the security.
- The bank should be willing to consider handing over the property to the borrower any time after repossession and before concluding sale transaction of the property, provided the bank dues are cleared in full.
If the recovery agents do not stick to the above procedure, you can approach to banking ombudsman. Do not forget to collect agents information.You can do it online also www.bankingombudsman.rbi.org.in.
Remember that the collection agents cannot threaten (verbally or physically) any individual to collect payments. In case such a situation arises, you can lodge a police complaint naming the collection agent, the collection agency and the bank the agency represents.
There is difference in intentional default and default because of some genuine problems. If you are intentionally defaulter engage in a dialogue with the bank and make some payment.So, while banks should act within law when collecting dues, consumers too have to play their part and pay installments on time.
