This is a question that many people ask. The answer is: it depends on the debt collection agency and the laws of the country. In India, there are specific laws that protect consumers from being harassed by debt collectors. However, not all collection agencies obey these laws. If you are being harassed by a collection agency, it is important to know your rights and take action if necessary. In this blog post, we will discuss the laws that protect consumers in India from debt collectors and what you can do if you are being harassed.
What are the laws governing debt collection agencies in India?
The laws governing debt collection agencies in India are the Recovery of Debts & Bankruptcy Act, 1993 and Securitisation & Reconstruction of Financial Assets & Enforcement of Security Interest (SARFAESI) Act, 2002. These Acts requires debt collectors to provide the debtor with a written notice of the debt. The notice must include the amount of the debt, the name and address of the creditor, and a statement that the debtor has a right to dispute the debt.
These Acts also prohibit debt collectors from using abusive, unfair, or deceptive practices when collecting debts. They also give consumers the right to file a complaint against a debt collector if they believe they have been harassed.
Besides these Acts, there are several Supreme Court judgements as well as RBI guidelines which protect the borrowers from any harassment.
How do these laws protect consumers from harassment by debt collectors?
The laws governing debt collection agencies in India protect consumers from being harassed by prohibiting debt collectors from using any unfair or unconscionable means to collect a debt. This includes harassment, threats, intimidation, and undue pressure. Furthermore, the act requires debt collectors to provide the debtor with a written notice of the debt.
Are there any loopholes that allow debt collectors to harass consumers?
Unfortunately, there are some loopholes that allow debt collectors to harass consumers. For example, the law does not prohibit debt collectors from contacting the debtor multiple times. Additionally, the law does not require debt collectors to have a valid reason for believing that the person they are contacting is actually the debtor.
What can you do if you’re being harassed by a debt collector?
If you are being harassed by a debt collector, there are several things you can do:
First, you can send the debt collector a written notice demanding that they stop contacting you. This notice should be sent by certified mail and should include your name, address, and phone number.
Second, you can file a complaint with the bank and if you do not receive any relief, you can file a complaint with the Banking Ombudsman.
Finally, you can also file a lawsuit against the debt collector. If you win your case, the court may order the debt collector to pay you damages.
No one deserves to be harassed by a debt collector. If you are being harassed, it is important to know your rights and take action. By doing so, you can protect yourself from further harassment and hold the debt collector accountable for their actions.
Register Now to get a call from our legal and financial advisors.