Non payment of emi's and cc bills, due to job loss and harassment

820 votes

The law is clear: while banks/financial institutions can recover dues, they cannot use harassment, threats or intimidation through recovery agents. The Reserve Bank of India (RBI) guidelines on recovery practices expressly prohibit abusive calls, late-night visits, or harassment of family members. If recovery agents are threatening you or creating ruckus at your parents’ house, you can immediately file a complaint with the local police station for criminal intimidation and harassment, and also escalate to the RBI Banking Ombudsman and the Grievance Redressal Cell of your bank/NBFC. At the same time, you must also address the loan liability to avoid escalation. Since you lost your job and are unable to pay, you can write to the financial institution formally requesting (a) moratorium/restructuring of your personal loan under the RBI’s Prudential Framework for stressed loans, or (b) a settlement plan where dues are either restructured into smaller EMIs or partially waived. If you show bona fide intention and make even small part-payments, it strengthens your legal position and prevents coercive recovery. Immediate steps you should take: 1. Document the harassment – record calls, save messages, note dates/times of visits. 2. Send a written complaint to the bank/NBFC’s nodal officer and copy it to the RBI Ombudsman, highlighting harassment and demanding lawful recovery process. 3. Inform the police in writing about recovery agents creating nuisance — this will protect your parents. 4. Formally request restructuring/settlement of your loan in writing, so you have proof of your intent to pay. The bank cannot arrest you for default — it is a civil liability, not a criminal offence. But if you ignore the issue, they may proceed under civil recovery proceedings or SARFAESI (if secured loan). Handling it legally and firmly is the safest path.

Advocate Sanil Sarkar LawRato

903 votes

file a complaint on RBI's banking ombudsman portal against the financial institution. also if they are visiting your parents house then send the bank a legal notice regarding it. and also if possible write a letter to the district's head judge and tell them regarding the situation.

Advocate Vivek Vilas Sable LawRato