regarding overdue notice pasted at home for 2 emi unpaid from June to

582 votes

An NBFC cannot unilaterally paste overdue notices at your residence without prior written notice, formal demand, and your explicit consent. This violates RBI Master Direction on Responsible Lending (conduct standards), your right to privacy, and invites defamation liability against the NBFC—not you. The notice pasting itself is the legal violation here, not your default. Your position strengthens dramatically: (1) The NBFC breached procedural safeguards under RBI guidelines; (2) Public/semi-public posting of recovery notices on residential property constitutes harassment and potential defamation of your character; (3) You have a counter-claim for tortious interference, invasion of privacy, and unfair recovery practice. File an RBI Ombudsman complaint immediately citing unlawful recovery conduct, and simultaneously demand written withdrawal of the notice and apology—backed by legal counsel threat. You need an advocate NOW to send a cease-and-desist notice, escalate to RBI, and prepare counter-recovery litigation before the NBFC accelerates SARFAESI action. This is winnable if acted on within 7 days.

Advocate Bhumika Vijay Bajaj LawRato

675 votes

An NBFC can take lawful recovery steps when EMIs are overdue, but recovery agents cannot use harassment, threats, public humiliation or unlawful methods merely because the borrower is in default. If an overdue notice has been pasted at the residence, its legality depends on the manner, contents and applicable RBI/recovery guidelines, particularly whether it discloses the borrower’s financial information to third parties or is intended to publicly shame the borrower. The borrower should preserve photographs of the notice, loan statements, repayment records and all communications with the NBFC. You may first submit a written representation requesting removal of any improperly displayed notice and propose a documented repayment/regularisation schedule. If the NBFC or its recovery agents continue objectionable conduct, the borrower can consider the NBFC’s grievance mechanism and, where applicable, the RBI Ombudsman process, apart from other remedies depending on the facts. Please send the loan statement, overdue notice, repayment details and any messages/calls from the recovery team on WhatsApp for detailed examination.

Advocate Sanket Ganpat Khamkar LawRato