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Vinay (XXX)     30 June 2011

Harassment by Bank Recovery Agents


My name is Vinay and couple of year ago i borrowed money (Rs 5 Lacs) from banks for my sisters marriage and I made the payments(EMI) until recession costed me my job. When I lost my job, I had around 6 credit cards which worth around 4 lacs and since I did have the job, one of my friend adviced me of trading in stock exchange but since I didnt have the liquidity of cash, I swapped my cards and got liquidity to trade in shares but it didnt work out and I ended up loosing all the money I had. Now it has been 2 years since it happened and now I am working with a call center and taking inbound abusinve calls from customers.

Few days ago, I received the call from some recovery agent of one of the bank and he was threatening me of dire consequences if I do not make the payment. Also, I received call from someone calling from Crime branch of Delhi and he wanted me to go and meet him in Delhi police headquarters since there is a case on charges of 420 and few other Indian penal codes but he also provided me the opyion of getting in touch with the # of the lawyer who filled the suit on behalf of the bank. When I called the lawyer, he was all irritated and yelling at me that he sent several notioces to my previous home and since I didnt responded to any of those, he would see me in court of law and he has procured non bailable warrants against me in Chennai Court and I would have to present in the court of law the very next day. I was scared for a moment but then I thought why would police give me information ahead of time so I would flee?? I couldnt understand and I switched off my phone and changed my #.

Yesterday again a recovery agent reached my home and started abusing me infront of my neighbours and I felt so ashamed and pitty for myself but there is nothing I could do because I am a call center employee who bring home a net salary of Rs 12000 and lives with his family who is dependent on him and I live in a rented accomodation so all in all after 25th, I have to borrow money from co-workers to feed myself and my parents. 

I know I have made a big mistake of my life and I am really sorry for it but what could I do? I am not sure how to deal with such harassment. I know that my loan would not be waived but can I get the amnesty of time till I get a better job and I dont have to face legal challanges?

Please help...



 17 Replies

Advocate M.Bhadra   30 June 2011

  R.B.I had it cicular dated 5.5.2007 imposed an embargo upon the lending Bank not to take coercive method to realise the loan amount,but ththey do not follow.If Bank issued notice u/sec.14(2) of SARFASI Act reply to the said notice,if they issued notice u/sec.14(4) you have to file an application U/s3c.17(1) to the DRT then you will get enough time to repay the loan.If your loan was sanctioned on personal ground you should file a suit for Injunction in Civil Court.Lodge a counter diary to the local police through registered post serve a copy to the S.P. and D.G.You can also file a criminal case against the recovery agency.

Kiran Kumar (Lawyer)     30 June 2011

you need not to be afraid of such goons....yours is a case of civil liability.


if you know the identity of that person then make a complaint with the local will be better to approach higher officials directly rather than lower level police officers.....


these recovery agents are just goondas and they often act in connivance with the lower level police officials.


visit some local lawyer and seek his services for drafting proper complaint....make as much allegations as possible....

J. P. Shah (RTI & CONSUMER ACTIVIST)     30 June 2011

Please visit: 

J. P. Shah (RTI & CONSUMER ACTIVIST)     30 June 2011

I also suggest that you should have autocall record software installed in your mobile, so that calls can be recorded and used in future against caller. Even you can inform caller that call is being recorded on your mobile. Mostly he will not call you again. SARFESAI AND DRT are not applicable to credit card loans since no property is mortgaged or hypothecated in such loans. However you must try to pay back loan at the earliest. You can discuss with banks for compromise amount etc.

RAJIV BHASIN (ADVOCATE) (Bhasin Legal Consultants(SOLICITORS & ADVOCATES) 9811210505)     30 June 2011

Don't afraid of such cheap tactics of financiers,  file civil suit  and criminal complaint against them. if they have not taken any coercive step file suit for permanent injunction. if they give notice then give reply to notice.


Hi all,

As i can see all of you suggesting him to have suit filed against BANK, RECOVERY AGENT.

but why dont you understand his problem he do not have money to throw at lawers like you to fight case for him.

I have right to say that as i am facing same situation in my life.

Kumar Doab (FIN)     30 June 2011

Learned members and experts have given their valuable opinion. Kindly follow it.

It is assumed that loan of Rs. 5lacs is not home loan, car loan etc, and may be a personal loan.The other amounts mentioned by you are CC charges.

As per procedure bank shall send you reminders by phone, letters, and if these are not delivered, then by a notice, or a legal notice. Bank might send a notice to file summary suite at their CC branch which in case of majority of the banks is Chennai. You may never get a notice from the court. The purpose of bank lawyer yelling at you, etc is to somehow make you approach the bank and pay up the full amount including penalties and principle amount, or somehow come running to Chennai.

Then bank may call you and may tell you that summons have been issued against you by permanent lok adalat in your state, and they may not tell you even the date and pressurize you to pay up the full amount including penalties and principle amount, or somehow come running to their debt management cell near your city. You may never get summons from lok adalat. The appropriate court is your location.

As per RBI process bank has to send you notice and inform you the complete details of the recovery agent of the bank (approved by RBI). Bank may just mention a phone number with name of the person (collection staff employed by the bank).

You may be approached by phone calls from recovery agents of recover agencies, whose phone numbers, address, may not be supplied by the bank. You are within your rights top ask for complete address, name of agency, RBI approval number etc., in writing from them and bank. Recovery agent has to seek an appointment with you and can come at appointed date and time only and has to carry copy of the bank's notice and his original ID. You can visit RBI website.

If any one coerces, threatens, abuses, record the call, or make a video if the person has done it at your place. Call the police immediately and lodge a complaint. Bank shall have to verify to the police that agent is their employee and has to produce copy of his Id and that he was on duty/or not when he created the scene. Police shall record the statements of the bank. You can obtain a copy. Your lawyer can support you with Supreme Court rulings that force can not be used. The purpose of all this is also that defaulting customer may file a complaint at his expense.

Kindly consult the elders in the family, competent and experienced persons known to the family, lawyer/law firm before taking decision on imp. Matters, and loan.

If you have taken the loan, settle the loan as ap. Try and make a settlement with the bank.

Banks are also willing to recover whatever they can close the issue. You can negotiate with the bank for easy and spread over EMI’s. However do everything in writing and obtain proper NOC and clean CIBIL, SATYAM report. It shall be appropriate to seek legal advice, by showing all documents and correspondences to your lawyer.

Advocate M.Bhadra   30 June 2011

With reference to my earlier answer it was wrongly mention as sec.14(2)and 14(4)  instead of  section 13(2) and section 13(4) of SARFASI ACT,inconvenience cause to regreted.

Vinay (XXX)     01 July 2011

I would like to thank you all for your suggestions and for taking time out of your rather busy schedule and try helping me out. I am overwhelmed with the responses received from all of you. I didnt really think that someone would come a step ahead to help someone like me who is a defaulter.

I agree with all your suggestions and would love to pay back the debt and find peace of mind from bankers and their recovery agents but however I do not have means to pay back the loans or CC expenses. If today they like to settle the amount @ 50%..I do not have all that and I am seriously not looking for a way out of this problem by simply telling them that I do not have money but I would like time and if I tell you the time I would need to start their EMI's or start making some sort of payments, then you would be ridiculed by it because I am in such situation that I cant even think of making payments to them anytime soon unless some miracle happen. 

At this point I am looking for 2 options. 1) I get long enough time without any pressure or court hassle that I could start to pay them back. 2) I just get rid of the recovery agents harassment or some Cop calling me telling me that they have non-bailable warrants against me.

Can someone tell me the consequences I could land into if I do not make the payment until I have the money? 

Thanks again for all your time and suggestions.

raviepic3 (Tech Analyst)     01 July 2011

Dear Kumar Doab,

Those were very valuable, and useful information that you have given...

saharaaj (n/a)     01 July 2011

i attended a call from someone naming himself Ganesh Apte sub inspector   calling from Mumbai Police Commissioner office and threatening arrest . I asked him in marathi  a few , he could not answer i realised it was fake . these agents collect dead and settled cases of telefone and use threatening tactics .

Sudhir Kumar, Advocate (Advocate)     28 January 2012

This is imposter call. A crime. Even if such call has been made by a police officer. Please call back on the same number from PCIO and call for mr Apte.

Sudhir Kumar, Advocate (Advocate)     28 January 2012

Surprising when the recovery agent was shouting at your residence you did not call the police.  Some of the recovery persons are ex-policeman.  They claim their rapport with local police.  If you find such person you just need to tell tath he is a pensioner and pensin is subject to good conduct i.e. liable to bewithdrawn on convicting if he threaens with the proximity of relations with public servants the he renders himself as well as area police liable for prosecution under PC Act.  You may better ask for a settlement with the bank. Bank also know that they derive nothing much from litigation.


Dear Sir,

If you are in mumbai i would like to meet you or please provide me your number.


Vinod Pawar

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