What to Do If You Receive Harassing Calls or Letters from a Bank
Understanding Bank Harassment
Banks and their recovery agents must follow RBI guidelines while collecting loan payments. If you receive excessive calls, threatening messages, or intimidating letters, it may be a case of harassment. Borrowers have legal rights to protect themselves from such unfair practices.
Steps to Take If You Are Being Harassed
1. Keep a Record of All Communications
- Save call logs, messages, emails, and letters from the bank or recovery agents.
- Note the date, time, and nature of the communication.
2. Understand Your Rights
- Banks can only contact borrowers between 8 AM and 7 PM as per RBI guidelines.
- They cannot use abusive language, threaten legal action without due process, or disclose loan details to third parties.
- Recovery agents are not allowed to visit homes or workplaces without consent.
3. File a Complaint with the Bank
- Draft a written complaint explaining the harassment.
- Submit it to the bank’s grievance redressal department and request an official response.
- Most banks must respond within 30 days as per RBI norms.
4. Escalate to the RBI Banking Ombudsman
- If the bank does not resolve the issue, file a complaint with the RBI Banking Ombudsman online or through a written application.
- Provide evidence of harassment, including call logs, letters, and complaint details.
5. Report to Authorities if Harassment Persists
- File a Police Complaint – If threats or intimidation continue, report the matter to the police.
- Approach the Consumer Court – In severe cases, borrowers can seek compensation for mental distress and unfair practices.
How to Stop Harassing Calls Immediately
- Send a legal notice through a lawyer warning the bank to stop unethical recovery practices.
- If calls persist, ask your telecom provider to block specific numbers or report spam.
- Avoid verbal confrontations—communicate through written records for legal protection.
Loan Settlement as an Option
- If loan repayment is difficult, discuss a loan settlement with the bank to negotiate a reduced payment.
- Be aware that settlement can impact your CIBIL score, making future loans harder to obtain.
Final Thoughts
Borrowers do not have to tolerate harassment from banks or recovery agents. Knowing your rights and taking immediate action can help stop unfair practices. If you are facing financial difficulties, consider legal options or professional guidance to resolve loan issues safely.
