• Harassment from bank recovery agent

I took 500000 personal loan from Kotak Mahindra Bank in March 2014 for 36 months. I paid 3 EMIs without any issue. In June 2014 I lost my Job and went to my native. After that I struggled a lot. and some how I managed and paying some partial amount. till last September I had a balance of 4 EMIs overdue. every time Bank recovery agent was calling and scolding me and threatening like he will go to guarantor house and we will issue arrest warrant to you and guarantor. I was afraid and some how I was paying.

But in October 2015, I came back to Bangalore to search a job, in October also I paid 1 EMI. suddenly without informing me Bank person went to my native and harassed my mother and sister and in front of neighbors they have measured my home and they said they came with court person to proceed with legal actions. 
Suddenly I called Bank persons and requested for some time, but they did not agreed, finally they said with in 2 to 3 days I need to clear the entire dues of 109000 (Including 4 EMI + interest on pending EMI and other charges of 42000), I was shocked and I took some hand loan and cleared 2 EMIs of 35766.
Now this month once again they started threatening and asking to clear the entire dues including this month EMI. even they have send one soft copy of Legal Notice through e-mail.
Now I have contacted Nodal officer of Bank but I am not getting any favor for me.
Totally as per Nov 5th 2015 I have a due of 3 EMI, and other charges of 42000.
I got one small job now, and I have requested Bank to restructure the loan, but they are not helping me.
Really I am getting mentally pressure and don't know how to handle this case. Please help me to resolve this issue.
Asked 1 year ago in Civil Law from Bangalore, Karnataka
1) you need not bow down to pressure tactics of bank 

2) bank can file summary suit for recovery of its dues with interest . 

3) in personal loan bank does not have any security from its borrowers 

4) if you have issued any post dated cheques bank can file cheque bouncing case against you 
Ajay Sethi
Advocate, Mumbai
23090 Answers
1212 Consultations
5.0 on 5.0
1. Bank recovery agents have been denounced as illegal by the Supreme Court time and again but people do not rise up against them due to fear of humiliation, so they have maintained their foothold. Your mother and sister should file a criminal case for criminal intimidation in the nearest police station against the bank and also the recovery agent. 

2. The fellow who represented himself as a 'court person' must actually have been a gang member of the recovery agent who came to browbeat you to repay the amount. If a lawsuit had been filed against you in the court the court would have issued you summons to come and defend yourself. 

3. It is the prerogative of the bank to restructure the loan or not, but it has to function within the legal framework. If it has to recover the loan from you then it has to go to court.

4. Do not fail to reply through your lawyer to the legal notice received by you.
Ashish Davessar
Advocate, Jaipur
18055 Answers
445 Consultations
5.0 on 5.0
1) you can file police complaint of criminal intimidation under section 506 of IPC against recovery agents . 

2) recovery agents cannot take law into their own hands 

3) also file complaint with the bank regarding strong arm tactics adopted by agent . bank is bound to investigate your complaint 

4) if no action is taken complain to bank ombudsman 
Ajay Sethi
Advocate, Mumbai
23090 Answers
1212 Consultations
5.0 on 5.0
CREDIT COUNSELLING SCHEME
OF THE BANKING CODES AND STANDARDS BOARD OF INDIA
• Coverage: Credit Counselling will be provided only to the borrowers of member
banks in the retail segment e.g. personal loam/vehicle loan/home loan/Credit Card
and MSE sector whose credit exposure does not exceed Rs. 50 lakh.
• Procedure: Borrowers in distress and seeking credit counselling may directly apply
to BCSBI in the prescribed application form. Member banks may also encourage
borrowers whose loan accounts are in default and who, in their opinion, need credit
counselling to approach BCSBI.
9 If the applicant’s case requires debt restructuring, the Counsellor will
formulate a debt restructuring plan in consultation with the concerned bank(s).
9 It is not obligatory for a bank to accept the debt restructuring plan drawn by
the Counsellor and the concerned bank is free to accept the solution in full or
with modifications.
• Charges: The credit counselling services are free of charge.
• Confidentiality: Credit Counsellors will maintain confidentiality of the information
received from member banks/borrowers. Member banks need to assure their
borrowers on this to encourage them to avail of the credit counselling services.
• Coordination: In order to ensure that there is co-ordination between Credit
Counsellors and the banks and also to ensure that the objectives of the Credit
Counselling are met with speed and efficiency, each member bank will identify a
Nodal Officer, preferably from the Credit Department.
• Location and Address: Counselling services will be available between 10.00 AM
to 5.30 PM from Monday to Friday at the following address:
Banking Codes and Standards Board of India
C-7, Reserve Bank of India Building
Bandra Kurla Complex Bandra (East)
Mumbai – 400 051
Tel No (022) 2657 1105 Fax No (022) 2657 3719
Website: www.bcsbi.org.in
e-mail : creditcounselingbcsbi@rbi.org.in
Ajay Sethi
Advocate, Mumbai
23090 Answers
1212 Consultations
5.0 on 5.0
Loan, being an agreement or understanding between the Bank and the borrower, the general laws like Law of Contract, Transfer of Property Act, Specific Relief Act, Specific Performance etc., are applicable to all banking transactions depending upon the nature of transaction.The remedy available to lenders has been to file an ordinary money suit for recovery against the defaulting borrower for the outstanding amounts or to file a summary suit as provided for under Order 37 of Code of Civil Procedure 1908.The Supreme Court, while emphasising that banks and other financial institutions cannot resort to muscle power for recovery of their loans, strongly expressed its intent of “putting an end” to this practice. “…Banks have right to recover loans, but only through legal means,” 
In the case of ICICI Bank v. Shanti Devi Sharma & Others[3] a Bench of the Supreme Court comprising Dalveer Bhandari, J. and Tarun Chatterjee, J. warned ICICI (on May 15, 2008) against the use of musclemen to recover loans.
The Supreme Court went on to remind financial institutions that they are bound by law. The recovery of loans or seizure of vehicles can only be done through legal means; we live in a civilized country and are governed by the rule of law.

Inview of above, you may issue a legal notice to bank to curb their illegal activities and to follow the due process of law for recovery or else criminal complaint would e lodged against them.  
T Kalaiselvan
Advocate, Vellore
13910 Answers
127 Consultations
5.0 on 5.0
Bank recovery person send an legal notice through e-mail as a soft copy from Bank e-mail ID, not through advocate. If they put more pressure, and if they give dead line to make the payments what shall I do? shall I inform them like, I am going to raise one police complaint against him? or shall I inform to RBI?

If they have sent you a legal demand notice, you can give a reply expressing your position and repayment terms.  If they do not agree to it, then they may file a money recovery suit which can be dragged on for some time during which you can arrange for the money and repay the entire amount and get freed. 
T Kalaiselvan
Advocate, Vellore
13910 Answers
127 Consultations
5.0 on 5.0
Tell them to file a lawsuit against you in the court to recover the amount which, according to them, you are liable to repay to the bank. Do reply to the legal notice through your lawyer with fail. If threatening calls do not abate then file a police complaint for criminal intimidation.
Ashish Davessar
Advocate, Jaipur
18055 Answers
445 Consultations
5.0 on 5.0
1.You have taken loan from the Bank signing an agreement duly agreeing to repay the availed loan with interest on agreed terms,

2. You are obliged to comply with the loan repayment terms of the said agreement failing which the Bank is authorised to recover the outstanding amount with due process of law,

3. So, without due process of law  i.e. without court proceedings, the Bank can not send rowdies to your residence or to your mother to harass you. There is clear Supreme Court order in this regard,

4. The Bank shall have to send you notice u/s13(2) & 13(4) of SARFAESI Act,2002, if you have mortgaged any immoveable property with the Bank and within 45 days of receipt of the 13(4) notice, you shall have to file an application before the DRT against the said Notice,

5. However, try to settle the matter amicably with the Bank if you have mortgaged any property otherwise ensure that there is no property standing in your name to enable the Bank to lay claim on it.

 
Krishna Kishore Ganguly
Advocate, Kolkata
12027 Answers
227 Consultations
5.0 on 5.0
1. Sending legal notice by lending Bank to its defaulting borrower through email is perfectly valid and in order  against which you can not complaint at all,

2. Sending rowdies by Banks to harass and threaten Borrowers have been banned by the Supreme Court against which you can lodge a police complaint,

3.You have not yet mentioned whether you have mortgaged any property with the said Bank or not.
Krishna Kishore Ganguly
Advocate, Kolkata
12027 Answers
227 Consultations
5.0 on 5.0
Hi, bank can recover the amount through the process of law only they can't recover the money according to their wills and fancy, If you received the legal notice through advocate only by RPAD then only you can reply the same through the advocate.

2. As you have small amount for recovery i don't think bank will go for legally and it will take years to recover the amount so if you received any threatening call from the bank then lodge a police complaint against that person.
Pradeep Bharathipura
Advocate, Bangalore
4104 Answers
133 Consultations
4.3 on 5.0

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