Remedial laws for harassment by Recovery Agents


In India, it has become common practice for financial institutions to use debt collection agents or collectors to collect bad debts. While registration agents play an important role in the billing process, their process can be a source of harassment. Harassment by people in recovery is a serious problem that can cause stress and anxiety. However, Indian law provides solutions to protect consumers from fraud and ensure fair and equitable debt collection.


What is back agent harassment?

When debt collection companies use strict and illegal methods to collect outstanding debts from people, it is known as debt collection agency harassment. This includes making frequent phone calls, using abusive language, harassing family members or colleagues, claiming legal action or arrest is imminent, or approaching a person’s home or workplace Uninvited.


Returning Agents Policy and Supervision

The Reserve Bank of India (RBI) issued guidelines in 2007 and amended in 2017. These guidelines outline the code of conduct that recovery agents must follow when working with customers. RBI guidelines emphasize the importance of fairness, professionalism and respect for consumers’ rights in the billing process.

The name cannot affect you personally. According to RBI rules, reverse engineering is not allowed to degrade your position. In other words, third parties are not allowed to negotiate the loan with your colleagues, friends or family. If the agent does this, you have the right to sue him.

Priests should introduce themselves. You must verify these when the office returns to receive the money. On behalf of the bank, the bank issues an identity card to each representative. Make sure they don’t hesitate to reveal themselves. If they don’t agree, call the bank or the police right away. Medical doctors should not use bad language. Medical professionals must follow certain rules.

For example, the collection officer must not use bad language to collect money from the debtor on behalf of the bank. They also need to treat all customers with respect, even if they have trouble collecting payments.

Personnel cannot reach you outside of normal working hours As required by RBI rules, rescuers can call you between 7 am and 7 pm. They are not allowed to contact you before or after 7am or 7pm.

If you work in shifts, you can ask the person to call him later and allow time. But they cannot force customers to speak in a difficult time.


RBI Prohibits the Conduct of Returning Representatives

The RBI guidelines expressly prohibit any form of harassment or intimidation by returning representatives. Some of the practices that are strictly prohibited are:

  • Intimidation and intimidation

Collection officers will not threaten or use force against the debtor or any of his or her family members. They should also avoid abusive language or behavior that could cause injury.

  • Public embarrassment

The rescuer cannot reveal the name of the illegal person or publicize his debts in any medium such as social media or newspapers.

  • Invasion of Privacy

The Representative shall not violate the privacy of the creditor by contacting the creditor at an inappropriate time, disclosing details of the debt to third parties, or calling back.

  • False Statement

prohibits employees from misrepresenting themselves or making false statements about the consequences of non-payment.


Laws Against Collectors Harassment

If a debtor is harassed by a collection officer, there are several remedies available:

  • File a police report

The Bank and Credit Bureau will respond to your complaint. However, if the police do not file a complaint, the judge can be contacted.

  • Injunction Actions

Precautionary injunction actions can be brought against banks and collection institutions in civil courts. Ensure that bank representatives and debt collectors do not go to someone’s home to collect debts.

  • Raise your concerns and file a complaint with the RBI

Following some public criticism of the bank, as well as reports of harassment of the recovery process, the RBI has identified some tips that returning agents should follow when dealing with illegal transactions. This way, defaulters can choose to contact the company and file a protest if they feel weak.

  • Defamation Claims

If debt collection is based on false information that causes a person to have a low CIBIL score, the person can defame the bank and recovery agency.

  • Intrusion Objection

If a bank’s collection officer enters the workplace without permission, a criminal complaint can be filed against people whose rights are violated.

  • Extortion Complaint

In case the money is forcibly returned by the recovery agency, an extortion complaint can be filed.

  • Make a complaint to your bank

Almost all banks have a complaint centre. Customers have the option to go to the department and contact someone about it. Generally, customers need to wait 30 days after making a complaint before making a decision or getting a response.

  • Grievance Resolution System

To address customers’ concerns, RBI has required banks to have a grievance resolution system.

If banks cannot resolve the borrower’s complaint satisfactorily, they can apply to the Banking Ombudsman or Consumer Court for further resolution.

  • Bank Ombudsman

If the bank does not resolve the problem or complaint within the specified time, the Bank Ombudsman can be contacted. Such a person is appointed by the RBI as a senior officer to deal with customer complaints. The ombudsman must make a legal decision to allow the bank to settle with the client. The ombudsman in the jurisdiction where the customer’s billing address is located is the referral point for complaints about credit cards.

  • Consumer Protection Act

Under the Consumer Protection Act 2019, which requires the creation of consumer courts at the regional, state, and federal levels, creditors can seek damages. These courts have the power to punish and compensate victims of recidivism.

  • Criminal Procedure

A creditor who has been seriously harassed in connection with a crime may report the institution to the police in accordance with relevant Indian laws such as Threats of Violence, defamation or harassment.



Harassment by recycling workers is a violation of consumer rights and deserves serious attention. RBI guidelines provide a framework to protect debtors from harassment, along with legal remedies under Indian law.

It is important that creditors know their rights, file a complaint against the faulty collection agency, and take appropriate legal action. By enforcing strict regulations and promoting fair billing, we can ensure fairness and respect for borrowers in India. If you are facing such problems, you should consult an experienced bankruptcy attorney.



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