• Loan recovery

Hi There,

I took a personl loan in the amount 5 lacs from HDFC bank,which i was suppose to pay in 5 years.I have paid around 48 EMI's to them till date in the amount of around 12k/mth,due the job loss i was not able to pay them the same amount of EMI. I called HDFC bank informed them about my circumstances & offered them to pay around 5k/mth as EMI on their terms & condition, they refused my proposal & then they started their heinous activities in order to recover the remaining amount, as a common malpractice they started disclosing my debt to third parties & harassment began. I had numerous people calling me from HDFC bank months after month but to no avail, i tried to settle however the amount that they were quoting was beyond my reach.

Heights of harassment took place yesterday when a cop reaches my native place & informs my daddy that they got a call from a police inspector from Delhi as a warrant has been issued against me and they wanted me to contact this alleged Delhi police inspector by tomorrow on a cellphone number provided to my daddy.

This is the scenario.

Please suggest.

1.By any chance can a warrant be issued in this case against me without any legal document to serve.

2. I had asked HDFC people to furnish me the details of the party from which they procured my friends & relatives phone numbers. (Breach of privacy & a potential threat to me)

3.They don't have any records of my conversation with them in the past, neither verbal or documented. (Breach of RBI guidelines).

What are the possibilities that i pursue this matter so that we can curb this menace in Indian banking sector,where a code of conduct is seriously missing.

FYI, I am a FDCPA certified debt collector working for one of the U.S mnc's, but I'm not much aware of Indian laws in this regards.

Any suggestion will be highly appreciated by you distinguished gentleman.

Regards
Asked 1 year ago in Civil Law from New Delhi, Delhi
1) in the event you receive any threatening calls record the calls and file complaint of criminal intimidation against HDFC   officials who harass you . 

2) your dad is not required to call telephone number mentioned by police inspector 

3) if any case had been filed against you then you would have been served with summons . only if you dont appear in court is bailable warrant issued . 

4) you can make application to court which issued warrant for cancellation of warrant 

5) you would be released on bail by magistrate court .

6) ask cop who visited your father for copy of bailable warrant issued  against you
Ajay Sethi
Advocate, Mumbai
23145 Answers
1215 Consultations
5.0 on 5.0
According to RBI guidelines, before sending a recovery agent, the bank is supposed to send you a letter with a picture, name and phone number of the agent. The agent is also supposed to carry a copy of the letter when he comes. Ask for the letter. If they don’t have it don’t entertain them. If they create a scene, dial 100 and call the police control room.
 
If they barge into your house, they commit a crime of trespass. You can call the police and seek their help. “If women are alone in the house and the agents don’t leave, they can call the police helpline

 You have a right to privacy. The recovery agent cannot discuss the debt to another person. So don’t panic if he threatens to tell neighbours or co-workers about your debt. If he does so, you can file a complaint against him with the bank.
Time: The recovery agent should contact you between 7am and 7pm. However, if your working hours or work shift does not permit this, you may be contacted beyond this time limit.
Calls: You can choose the place and time for receiving recovery calls. You can also request them to not call you at a particular place or time. For instance, if you don’t want to receive calls at work, specify the same to the agent or the bank. Keep in mind, they will respect your request only till they feel you are not avoiding them.
Decency: The recovery agent has to talk to you in a decent and civilized manner. No abusive language should be used. Also, the written communication sent by the banks should be easy to understand.
Investigation: If you file a complaint against a recovery agent, the bank needs to investigate the matter. This makes recovery agents accountable for their collection practice.
Ajay Sethi
Advocate, Mumbai
23145 Answers
1215 Consultations
5.0 on 5.0
1. It is a civil case and not a criminal case. So, your arrest warrant for not paying is absurd. It is strange that a policeman visited you village and asked your father to tell you to contact a Delhi Police Inspector. The whole thing is a bunch of rubbish. Someone might have posed as a cop to meet your dad to scare you,

2. HDFC Bank will not accept that they had send anybody to your father or contacted anybody over phone,

3. The Bank is not bound to record oral conversation. You should have submitted your restructuring proposal by proposing to pay less EMI for a much longer period and kept delivery proff of your said proposal,

4. If HDFC Bank sends any recovery agent to create nuisance and harassment, lodge a police complaint to that effect since there is a Supreme court order directing the lending Banks not to resort to any illegal and forceful recovery measure.
Krishna Kishore Ganguly
Advocate, Kolkata
12074 Answers
228 Consultations
5.0 on 5.0
1. Yes, it is just part of their recovery measures which is not at all legal,

2. Ask your father to take photograph of the said visiting cop and also record his voice,

3. However, the Bank is not barred from its right to recover the outstanding from you legally,

4. The Bank can file a Recovery Suit for recovery of their outstanding by attching your properties or the properties of your guarantors, if there is any guarantor for your said loan.
Krishna Kishore Ganguly
Advocate, Kolkata
12074 Answers
228 Consultations
5.0 on 5.0
1) you can ask police officer to produce warrant issued by court .

2) appears to be a hoax call

3)ask your dad to obtain  name of police officer who visits your dad . ask police officer to furnish court orders of issue of warrant . your father should mention he has no knowledge of his son dealings .
Ajay Sethi
Advocate, Mumbai
23145 Answers
1215 Consultations
5.0 on 5.0
1. The possibility of a warrant being issued seems remote, but it cannot be ruled out altogether. If a suit for recovery or a criminal case was filed against you and you did not appear in the court on the date of hearing then it would inevitably have resulted in a warrant being issued against you. If a warrant is issued then you must immediately take steps for obviating the adverse consequences which will ensue out of the issue of a warrant of arrest.

2. Police comes into picture only if it has been directed to arrest and produce you in the court.

3. It is a common malpractice adopted by the banks to send recovery agents who misrepresent themselves as cops to intimidate the debtor or his family. The use of recovery agents for loan recovery has been frowned by the Supreme Court on a number of occasions and it has also ordered the prosecution of many bank officials who ordered the use of recovery agents. It is necessary that you should ascertain if a case is pending against you in the court. If it emerges that no case is pending against you in any court of law then you must lodge a complaint to the police against the bank.
Ashish Davessar
Advocate, Jaipur
18061 Answers
446 Consultations
5.0 on 5.0
Dear Querist
My opinion on your queries are as under:

1.By any chance can a warrant be issued in this case against me without any legal document to serve.
Opinion: No, without issue the summon to you the court can not issue any warrant against you, the Bank have right to file a complaint against you under NI Act only and before filing the complaint the Bank have to issue a legal notice to you for repayment of the outstanding amount within 15 days. so it seems that the police personal came to your Daddy without any legal authority.

2. I had asked HDFC people to furnish me the details of the party from which they procured my friends & relatives phone numbers. (Breach of privacy & a potential threat to me)
Opinion: you may file a complaint against them before banking Ombudsmen.


3.They don't have any records of my conversation with them in the past, neither verbal or documented. (Breach of RBI guidelines).
Opinion: It is immaterial, 

What are the possibilities that i pursue this matter so that we can curb this menace in Indian banking sector,where a code of conduct is seriously missing.
Opinion: First of all contact a lawyer and send a legal notice to bank with all the detail of the harassment as their recovery agent doing with you and your family members, and if they are not ready to settle the matter with an apology then you may file a complaint against them before court or police.
Nadeem Qureshi
Advocate, New Delhi
3522 Answers
129 Consultations
4.9 on 5.0
If the Cops again came to your daddy then first of all checked their Identity and if there is any warrant or summon then the Police is bound to show the same to your father. if they are not ready to do this then dial 100 no. and call the local police to verify the same.
Nadeem Qureshi
Advocate, New Delhi
3522 Answers
129 Consultations
4.9 on 5.0
in Chandran Ratnaswami vs K.C. Palanisamy & Ors; held by the spureme court that personal liberty is precious for an individual, it can't be curtail until  law and order disturbs. in recovery of debt no issue of disturbance of  law and order exists so no arrest could be made or arrest warrant could be issued. 
file complaint before court against bank's officer for extortion. debtor has right to extend his loan period by compromise decree of the court. so you can file suit before small causes court for extension of installment and if court agrees it can either increase the period or decrease the installment amount.
Shivendra Pratap Singh
Advocate, Lucknow
2731 Answers
41 Consultations
4.9 on 5.0

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