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First of all, it is important for you to understand how to protect yourself from falling prey to fake agents. For this, it is important that you ask for the recovery agent's ID before starting a conversation about loan dues etc. After getting the ID, you have to carefully check whether it is issued by a bank or NBFC or not. When you are sure that the recovery agent is from the same bank from which you have taken the loan, then only start talking to him.
The recovery agent cannot share the customer's personal information
It is mandatory for the recovery agent to keep your loan information confidential. It will not share your information with anyone. It cannot discuss your loan publicly or with any third party. If you feel that the recovery agent is violating these rules, then you should complain to the bank or NBFC. You can also take legal action against the recovery agent.
The recovery agent can be contacted only between 7 AM and 7 PM
According to RBI rules, recovery agents have to be polite while talking to the customer. They have to respect your personal space and can contact you only between 7 am and 7 pm. If the recovery agent does not follow these rules, then you can take legal action against him. For this you will have to provide evidence. You can record his phone call. You can save his SMS.
Default on your loan? You need not fear
1. Talk to the bank about the loan
You can tell the bank the reason for loan default. If your financial condition is not good then it is necessary to inform the bank about it. The bank will understand your problem and try to find a solution. This will assure the bank that you intend to repay the loan. This will prevent the recovery agent from misbehaving with you.
2. Apply for loan restructuring
You can apply to the bank for restructuring your loan. This will make the terms of loan repayment easier for you. You will get more time to repay the loan. This will prevent you from facing problems like default. You will repay the loan gradually. But, it is important to look at and understand the restructuring proposal properly before signing it.
3. One-time settlement
If you are unable to repay the entire loan amount to a bank or NBFC, there is the option of a lump sum settlement. You can pay a certain amount to the bank at once, which may be less than the total loan amount. But, the bank's consent is necessary for this. But, it will appear in your credit report. This can have a negative impact on your credit score. You may also face difficulty in getting a loan in the future.