Those of us who have heard and/or seen the bank’s recovery agents will only know how dreadful and demeaning it is to be accosted by them, either on phone or physically. Their voice and tenor is deliberately modulated to make you tremble in your knees. Their countenance, meant to put the fear of Yama –the god of death in you. That apart their lingos, adjectives and language would make gutter language appear musical. Even the female tele-callers of this breed are no better. Some pose of lawyers and others as cops with an arrest warrant in their hands ready to execute you at their will. All said and done, if you under stand how a recovery goon works and the law of the land, you will be able to handle the recovery agents properly and not succumb into paying extortionists amounts when the recovery agents comes calling.
A financial transaction is a civil contract between the creditor and the borrower. It can be enforced only by civil action after the dues have been adjudicated. There a re number of mechanisms for adjudication of dues between a borrower and a banker. The borrower should not hesitate to approach any of these forums well in time and not wait expecting the bank to have some humanitarian convulsions to settle your account properly. Not approaching the proper forums may result in disastrous consequences on many fronts, including the forum itself coming to the conclusion that the borrower has approached merely as an afterthought to ward off the recovery process. However, you can approach the legal forums even after the recovery agents have accosted you.
The recovery agents work on commission basis. He is not a salaried man to draw his salary at the end of month. His income is totally dependent upon how much he can get out of you. The more he gets out of you the more he will get his commission. And though he flashes the Bank’s ID card or some such thing, he is actually a agent working for a recovery company. He is not even distantly related to the Bank or its image or its reputation. Once you know that, you should start working on your plan of action.
There is no law that empowers a recovery agent to recover any money from you. Only the courts can order you to do that. The recovery agent is only there to “assist” you to repay the dues. Therefore, if he says that he will get you arrested then you must call up the bluff. Unless a cheque issued by you has bounced, no one can arrest you. Even in case of bounced cheques, you will be given a legal demand notice and an opportunity to pay the amount. Even for proceedings under the <a target='_blank' rel='nofollow' href = 'https://www.bankdrt.com/nf/securitisation/index.php'> Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interests (SRFAESI ) </a> Act and Debt Recovery Act only the <a target='_blank' rel='nofollow' href = 'https://www.bankdrt.com/nf/acts/index.php'> Debts Recovery Tribunals ( DRT ) </a>can order arrest and detention. The CMM can order auction and sale of assets under SRFAESI Act only if there is no order form the DRT.
The moment the recovery agents calls you up, first thing you must do is to ask for the statement accounts and demands. This will definitely be different from the one you would be having. Go through the statement carefully. The statement could be having inflated levies and hefty penalties. Get these carefully cross verified. Write back to the Bank asking them for an explanation. An explanation from the Bank, in writing is a must before the statement can be enforced. If you are not satisfied with the explanation, you should file an application before the <a target='_blank' rel='nofollow' href = 'https://www.bankdrt.com/nf/ombudsman/index.php' >Banking Ombudsman</a>. This will immediately put the bank on notice and the operations of the recovery goons will have to be stopped.
Also, check up the records of the previous bills. If there has been any latches on the part of the credit card company these are deficiencies of service and you can file an application before the Consumer Disputes Redressal Forum seeking damages and compensation against the credit card company. This makes the matter sub-judice and the actions of the recovery agents will have to be stopped.
Not only are the above process time consuming on one hand, but on the other would be costing the Bank a hell a lot of money instead. On top of it, if properly presented, you could actually be getting money from the bank instead. In the end of day, the recovery agent would be prepared to negotiate with you. At least some commission is better than no commission. It would be in the interest of the Bank too go in for a out of Court settlement. Weigh the pros and cons properly. If found appropriate go for negotiation and settlement of the case. It may be good for you too. Instead of getting involved in protracted and lengthy legal wrangling getting out of a messy situation is any time better.
When paying money to the recovery agent, be sure to pay only to the bank. Don’t pay any amount until you have got it in writing that the payment is in full and final settlement of the dues. Again, get the document cross verified from the Bank. Always issue the cheque in the name of the Bank and not in favour of the recovery agency. Get proper endorsement for receipt of the cheque. Cross verify that the amount has gone to the bank and has not been embezzled by the recovery agent. Again cross verify from the bank that account has been settled and closed.
Even as negotiations are under way don’t give any thing in writing to the recovery agents. Take legal assistance if the recovery agents seeks any documents, letters or undertaking from you pending settlement of the bill. Don’t give signatures on any blank documents, including printed forms.
Once the recovery agents come to know that they are dealing with some one for whom fear is not the key they may change tactics. They may exert more pressure on you than they would normally do. Keep a record of all their visits, time of visit, number of persons who came, and also their identity. Keep a record of all their phone calls as well as that of their SMSes. If they start behaving very obnoxiously, you should file a complaint with your local Police Station. Don’t fail to take an acknowledgement for filing the complaint. The local police officers may not be of much help, but should you think it is necessary, then file a private complainant before the local Chief Metropolitan Magistrate. Even a Writ too can be filed before the High Court seeking directions to the Bank to follow the due procedure instead of sending recovery agents. On the whole <a target='_blank' rel='nofollow' href = 'https://www.bankdrt.com/nf/judgements/index.php' >the Courts </a>have been strongly disapproving the strong arm tactics of the Banks to recover the dues, especially where the due amounts have been disputed.
The <a target='_blank' rel='nofollow' href = '../../https://www.bankdrt.com/nf/rbi/index.php'>Reserve Bank of India </a>is in the process of issuing detailed guidelines to the Banks on the modalities of hiring, training and monitoring the working of the recovery agents. But till such time an institutional machinery is put in place and becomes effective, the borrowers must take elementary precautions for not being extorted out of money that they do not legally owe.
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