Arun Saxena, president, International Consumer Rights Protection Council says, "Debt recovery agents often treat borrowers in unacceptable, illegal ways. Customers should be careful about giving any money to agents; payments should be made against a proper receipt. One can even approach the National Human Rights Commission if need be." The police can be contacted in matters pertaining to physical and mental injury caused by a recovery agent. The borrower can file an FIR, detailing threats and instances, against the chairman of the company that employed the agent.
The important thing for the borrowers to remember is to not get intimidated. Also, they should not behave aggressively, asking to contact the bank incase of having problems with the recovery agents. It is highly advised not to get abusive to counter a recovery agent, as it would go against the borrower.
To protect the interests of both the borrower and the creditor in the debt recovery process, the Reserve Bank of India has issued guidelines that a recovery agent and the bank that employs him have to honour.
The RBI guidelines give the borrower the right to decide a place to meet and a time to be contacted by the recovery agents. The banks have an obligation to ensure that their recovery agents deal with their clients properly. At no time should any recovery agent forget the condition and status of the borrowers. Adds Mumbai-based high court lawyer Rohini Pandit, "The creditors have the right to recover their dues, but there is a right way to so. Laws have to be followed, which are not necessarily followed by many creditors."
Failure to incorporate the RBI’s guidelines could lead to the central bank invoking a ban on engaging recovery agents by the bank in a particular area, either jurisdictional or functional, for a limited period. In case of persistent breach of its guidelines, the RBI may extend the period of the ban or the area of ban.