If you are stuck in such a situation, here is what to do.

This query is on behalf of Mr. Alok Verma, an 80-year-old gentleman. About a decade ago, around 2015, he was offered a credit card by a representative of Bharat National Bank (BNB) at their branch in Suryanagar. He was told the card was free and had no annual charges. For a few years, everything was fine.

However, the bank later started levying charges on the card. Mr. Verma promptly paid all the outstanding dues and formally closed the card. He cut it into two pieces and sent it to the bank’s main office in Indrapuri, which was acknowledged by the bank around 2018-19.

Despite this, a few months later, charges began to appear on the closed card account, and the supposed outstanding amount continued to grow. He started receiving repeated calls from recovery agents, who sometimes used abusive and threatening language. Troubled by this, he eventually stopped taking their calls.

Recently, a member of his local community center gave him a phone number, saying someone from BNB wanted to speak with him. When Mr. Verma called, the person on the other end identified himself as an advocate representing BNB’s card division. He claimed there was an outstanding due of ₹7,850, which could escalate to nearly ₹15,000 with accumulated interest and penalties. When Mr. Verma explained the situation and refused to pay, the “advocate” offered a settlement of ₹3,500, citing Mr. Verma’s senior citizen status. To prove his legitimacy, he even quoted the old credit card number, which had been physically returned and destroyed years ago.

This entire ordeal has caused immense stress and anxiety for the elderly gentleman, who lives alone in Suryanagar while his family resides in Indrapuri. The bank’s representatives have been uncooperative with his daughter, who has tried to intervene and resolve the matter.

Advice in such cases

• Gather all documentation related to the credit card, including the application form (if available), statements showing the final payment, and any correspondence regarding the card’s closure.
• Do not make any payment based on verbal threats or offers. Any settlement should be preceded by a formal, written offer from the bank on their official letterhead.
• Communicate with the bank only through written channels like email or registered post. This creates a paper trail that can be used as evidence.
• Record any threatening or abusive calls from recovery agents, if legally permissible in your state. Inform the caller that the conversation is being recorded.
• File a formal complaint with the bank’s grievance redressal officer and, if the issue is not resolved, escalate it to the Banking Ombudsman.
• Consult with Lawyer: The very basic and important step to start is talk to Lawyer / advocate. You should not hesitate in paying his consultation fee i.e. might be in range of Rs. 10,000 to 50,000 depends case to case. He is helping you in this situation of come out. He is expert in the domain and can help you explain the procedure which you might have never explored. A good lawyer can get the issues resolved much faster than you think

Applicable Sections of Law

The actions of the bank and its recovery agents may fall under several legal provisions:

• Section 318 of the Bharatiya Nyaya Sanhita, 2023 (BNS): This section deals with extortion. If recovery agents are intentionally putting a person in fear of injury to compel them to pay money, it can amount to extortion.
• Section 351 of the Bharatiya Nyaya Sanhita, 2023 (BNS): This pertains to criminal intimidation. Threatening a person with injury to their reputation or property to cause alarm is a punishable offense.
• Consumer Protection Act, 2019: The bank’s actions, such as charging a closed account and using coercive recovery tactics, can be classified as a “deficiency in service” and “unfair trade practice.” A complaint can be filed in the appropriate consumer commission.
• Reserve Bank of India (RBI) Guidelines: The RBI has laid down strict guidelines on the Fair Practices Code for lenders and the conduct of recovery agents. These guidelines prohibit harassment, intimidation, and calling at odd hours. Violating these can lead to penalties for the bank.

If you are the complainant

• First, send a detailed legal notice to the bank through an advocate, outlining the entire history of the case, demanding the withdrawal of the illegal claim, and seeking compensation for harassment.
• If the bank does not respond favorably, file a complaint before the appropriate District Consumer Disputes Redressal Commission, claiming deficiency in service and seeking compensation for mental agony.
• If the harassment involves threats, file a police complaint under the relevant sections of the BNS. Provide the police with all evidence, such as call recordings and contact numbers of the agents.
• Consult with Lawyer: The very basic and important step to start is talk to Lawyer / advocate. You should not hesitate in paying his consultation fee i.e. might be in range of Rs. 10,000 to 50,000 depends case to case. He is helping you in this situation of come out. He is expert in the domain and can help you explain the procedure which you might have never explored. A good lawyer can get the issues resolved much faster than you think

If you are the victim

• Do not panic or give in to pressure from recovery agents. Understand that you have legal rights.
• Preserve all forms of communication. Keep a log of calls received, noting the date, time, number, and the summary of the conversation.
• Never share personal financial details like OTPs, PINs, or other bank account information with anyone claiming to be from the bank over the phone.
• Immediately report the matter to the bank’s official grievance cell and the RBI’s Banking Ombudsman portal.
• Consult with Lawyer: The very basic and important step to start is talk to Lawyer / advocate. You should not hesitate in paying his consultation fee i.e. might be in range of Rs. 10,000 to 50,000 depends case to case. He is helping you in this situation of come out. He is expert in the domain and can help you explain the procedure which you might have never explored. A good lawyer can get the issues resolved much faster than you think

How the police behave in such cases

In cases like these, the police might initially be hesitant to file a First Information Report (FIR), often viewing it as a civil or consumer dispute. They may advise you to approach the consumer court or the banking ombudsman. However, if you clearly articulate the elements of criminal offenses like extortion (Section 318 BNS) or criminal intimidation (Section 351 BNS) and provide supporting evidence, they are obligated to register an FIR. It is advisable to submit a written, typed complaint to the officer in charge of the police station to ensure a record is maintained.

FAQs people normally have

What evidence is required?

To build a strong case, you should gather the following evidence:

• All credit card statements, especially the one showing zero balance after you paid the dues.
• Proof of card closure, such as an email confirmation, a letter from the bank, or postal receipts for returning the card.
• A log of all calls from recovery agents, including their phone numbers.
• Call recordings of abusive or threatening conversations, where legally permissible.
• Copies of all written correspondence with the bank, including emails and legal notices.
• Contact details of any witnesses who may have overheard the threatening calls.

How long will the investigation take?

The timeline can vary significantly. A complaint with the Banking Ombudsman is typically resolved within 30 to 90 days. A case in the Consumer Commission can take anywhere from six months to a few years, depending on the complexity and the workload of the commission. A police investigation and subsequent criminal case can also be a lengthy process, often taking several months for the investigation to conclude and for the matter to proceed to trial.

Advocate Sudhir Rao, Supreme Court of India