Credit card

No credit card debt collector can harass you or your distant relative

Image: Agency

A 43-year-old woman has complained to police in Chitalsar Manpada in Thane, saying she was being harassed by loan collectors for loans taken out by a distant relative of her husband. The defendant turned her photo obscenely and threatened to go viral if her relative did not pay the money. In most cases, the person taking out the loan complains to the police, but this is the first time that a third party has acted.

According to the police, on July 08, the victim received a message from an unknown number, mentioning the name of a person (a distant relative of the victim’s husband) and stating that he had taken out a loan online and asking the victim to inform the said person to repay the loan. The victim immediately called the said relative and the latter informed her that on June 25, he had totally taken a loan of Rs 40,000 on eight different mobile loan apps and even paid back Rs 1 lakh including interest, but that he was nevertheless harassed by debt collectors for more money with the threats that if he did not pay more money, then his relatives and friends in his contact list would also be harassed.

After knowing the entire episode, the victim had blocked the number from which she had received the message. Later, the victim received a similar message from another unknown number, but this time in the message, the sender also used abusive language for the victim. The next day, the victim received a message from another unknown number and said message contained his morphed lewd photograph, along with a message that if the loan was not paid, they would make his photograph go viral on social media. The victim then informed his family of the harassment and then filed a complaint with the police.

The police recorded an offense on charges of computer-related offenses and publishing or transmitting material containing the sexually explicit act etc. in electronic form in accordance with sections of the Information Technology Act information. Above all, no bank has harassed anyone under any circumstances. If a borrower defaults, the bank has a legal right and recourse against the borrower to demand repayment. In such cases, the lengthy legal process gives life to the loan or credit card seeker. In the meantime, if the creditors prove to the court his inability to pay the amount, they ask for a minimum amount to be paid for long years which can be one hundred rupees per month. Banks cannot afford such transactions, so they outsource these jobs to collection agencies. The survival of the agency is a percentage of the amount collected. That’s why they built pressure tactics.

In this process, the bank will call the borrower at the bank, visit the borrower at his home or office, issue letters of demand, issue a legal notice, initiate legal proceedings, issue information on the defaults in the logs and will even take possession of the security offered (movable and immovable property) – among many other steps if his personal loan. In the case of a credit card, a bank can take legal action but cannot go beyond that.

But debt collectors harass with continuous abusive phone calls, agents also drag family members, friends and even co-workers of debtors if they need to collect debts. They can be very ruthless when dealing with the debtor because these debt collectors are paid on the incentive model, they aim for maximum debt collection so they can be rewarded more. To sum it up, debt collectors can do anything to get every penny out of the debt holder, which includes continuing the phone calls and coming to your doorstep, they make sure you realize that incurring loans was one of the worst mistakes of your life.

No bank will ever contact another family member or friends. You can do a lot to stop them from harassing you. Debt collectors have every right to talk to you about paying off the debt. However, they cannot threaten or embarrass you in front of others or play with your reputation. They also cannot call you at odd hours. They may just ask you to repay the loan and nothing else. Unless you have a court order, they can’t remove anything from your house. If you think you are being mentally harassed by debt collectors and they are also threatening you, please contact a lawyer (not necessarily expensive) who deals with banks and financial institutions. The lawyer will send a notice to the bank, RBI and the police that you are being criminally harassed by the bank’s debt collectors. As soon as the lawyer’s opinion arrives at the bank’s pace, you will no longer receive calls from debt collectors! You don’t even have to take legal action against them. But pay if you can afford it, otherwise it will seriously hurt your credit score.

When the State Bank of India could not collect millions of money from student loan borrowers, they sold it to Reliance at a discount. Previously this notice was sent to all borrowers. Nobody answered. It’s the first time. After three months, people started coming in complaining about the sale of their loans to Reliance. The reason was Reliance, with the help of private agents, discovered all the borrowers. People, who told banks they were unemployed, have now started closing their loans. Reliance could find their employment addresses and track them regularly.

Big business owners took hundreds of thousands of dollars from banks and left India, no bank could really catch them. Forget their attitude towards people who have borrowed. Even seniors who have deposits with banks make them wait forever for a deposit receipt to be issued. Banks have become very callous and simply don’t care about customers. Likewise, recovery agencies go on a rampage to harass people in the name of recovery by any means.