No more worrying about EMI remaining! Have you taken a loan but are you being harassed in the name of recovery? Then know your rights. According to the new guidelines of the Reserve Bank, strict rules have been warned against harassing customers in the name of loan recovery. It is reported that this new guideline will be implemented from January 1, 2027.
New rules for recovery agents
The time limit for recovery calls is not before 8 am, not after 7 pm! And he can meet the customer only during this time. But if the customer is calling at another time of his own free will, then it may be different in that case. And the biggest thing is that there will be a conversation, but with proof! There will now be a record in recovery calls. Before the conversation starts, the customer will have to be informed that the phone is being recorded. The information provided says that this record will have to be kept safe for at least 6 months.
Who is calling? For whom? Now no more hiding your identity! The law demands that if the bank assigns the responsibility to an external recovery agency, then it will have to inform the customer in advance which agency or agent will contact the customer. Even if the agent changes or the contract of the agency ends, the customer will have to be informed. When the agent comes to the house or office, the agent will have to show his identity card and the bank’s authorization letter.
Restriction on misuse of personal information
It has been demanded that the agent will be given only as much information as is required for recovery. There will also be a restriction on harassing the customer’s relatives, friends or office colleagues by calling them. It has also been demanded that it will be prohibited to publish the personal information, audio or video of any loan defaulter on social media.
Will the mobile be locked immediately if the installment bounces?
Will the phone be locked immediately because of EMI remaining? No, there is no notice and time-bound process. According to the information provided, the finance company cannot immediately lock the phone if there is any installment due on the EMI-financed mobile, tablet or other financed device. The customer will be given a notice after 60 days past due and after a specified notice period, if it is 90 days past due, restrictions may be imposed on the device. So there will be a process of giving notice and warning before this. Even if the functionality of the phone is restricted, it is said that there is a provision to continue the facilities like essential tasks, incoming calls and messages. It is also said that the recovery company will not have permission to view the contact list, photos, call history or location on the phone without the consent of the customer.
Will the phone be unlocked in an hour after paying the loan?
There will be a time limit on unlocking the phone, not just after paying the money! According to the information, the customer will have to unlock the phone within an hour after paying the outstanding amount. If there is a delay in unlocking due to the company’s fault, a compensation of Rs 250 per hour has also been made. However, the final status of this specific mobile lock, unlock and compensation system must be confirmed from the acquisition instructions.
There will be a mechanism for complaints
If there is a complaint about the use of recovery agents, there will be a mechanism to complain to the bank’s grievance redressal officer, the information provided says. If steps like seizure of property are taken, it will have to be ensured whether it is done as per the loan agreement and law or not.
Will the entire process of loan recovery change?
The aim of this change is to make the loan recovery process more systematic and transparent. Emphasis is being placed on training of recovery agents, timely phone calls, recording of phone conversations and security of customer data. RBI was constantly receiving complaints that some recovery agents were threatening customers, pressuring them through social media, using abusive language and locking mobiles or laptops. Taking these complaints seriously, RBI has tightened the loan recovery rules. This new rule will be fully implemented from January 1, 2027. However, the final form, implementation and all specific provisions of the given rules will be subject to the final instructions of the Reserve Bank of India. So, if you are a borrower, know your rights, know the rules and report any grievances through the appropriate channels. Remember, it is your responsibility to pay EMI, but no one has the right to threaten or harass you in the name of Recovery !
