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

Mr. Alok Verma, a resident of Amanpur, found himself in a state of panic. He had an outstanding bill of Rs. 3,500 with a digital lending app, “SwiftCredit Solutions.” After being overdue for almost a year, he received a message that read: “OFFLINE COLLECTION PROCEEDINGS INITIATED. A Field Recovery Agent will visit your registered address within 48 HOURS to collect the pending amount. Your associated contacts have been flagged for further action.” This message, designed to intimidate, left Mr. Verma worried about public humiliation and harassment, not just at his home but also within his social circle.

Advice in such cases

Receiving such threatening messages can be extremely stressful. It’s important to handle the situation calmly and strategically.

• Do not panic or get intimidated by aggressive language. These are often scare tactics.
• Preserve all communication. Take screenshots of messages, record calls (informing the other party if required by law), and save all emails. This is crucial evidence.
• Do not engage in arguments or abusive conversations with the recovery agents. Remain polite but firm.
• Never share additional personal information like Aadhaar, PAN, or bank details based on these threats.
• Verify if the debt is legitimate and if the company is authorized by the RBI to conduct lending activities.
• 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

While recovering a legitimate debt is legal, using threats and harassment is a criminal offense. The following sections of the Bharatiya Nyaya Sanhita (BNS), 2023, are relevant:

• Section 318 of the BNS (Extortion): If an agent threatens to cause harm to your reputation or property to compel you to pay, it can amount to extortion. Threatening to inform your contacts is a classic example.
• Section 351 of the BNS (Criminal Intimidation): Threatening to send agents to your home or workplace with the intent to cause alarm or make you do something you are not legally bound to do (like paying under duress) is an offense.
• Section 356 of the BNS (Defamation): If the company or its agents share information about your debt with your friends, family, or colleagues to shame you, it constitutes defamation.
• RBI Guidelines: The Reserve Bank of India has laid down strict guidelines for Fair Practices Code for lenders, which prohibit harassment, intimidation, and calling borrowers at odd hours.

If you are the complainant

If you are being harassed, you are the complainant and have the right to initiate legal action.

• Compile all the evidence you have gathered, such as screenshots, 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. A lawyer can send a strong cease-and-desist notice to the company.
• File a formal complaint at your nearest police station, detailing the harassment and intimidation. Insist on filing an FIR under the relevant sections of the BNS.
• You can also file a complaint on the National Cyber Crime Reporting Portal (cybercrime.gov.in).
• If the lender is a bank or an NBFC, file a complaint with the RBI’s Sachet portal.

If you are the victim

Seeing yourself as a victim of harassment is the first step toward reclaiming your peace of mind. Your financial situation does not give anyone the right to harass you.

• Understand that the law is on your side when it comes to harassment. Defaulting on a loan is a civil issue; threatening you is a criminal one.
• Document every instance of harassment meticulously. Keep a journal with dates, times, agent names (if known), and the nature of the threats.
• Do not make any payment under duress. First, seek legal guidance to stop the harassment.
• 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. An advocate will act as a shield between you and the recovery agents.

How the police behave in such cases

Initially, the police might perceive the issue as a civil dispute over non-payment of a loan and may be reluctant to file an FIR. They might suggest you settle the matter with the company. However, it is important to clearly explain the criminal aspect of the case – the threats, intimidation, and harassment. If you provide clear evidence and are accompanied by a lawyer, the police are obligated to register an FIR under the appropriate criminal sections of the BNS.

FAQs people normally have

What evidence is required?

To build a strong case against harassing recovery agents, you need solid proof. The more evidence you have, the better.

• Screenshots of all threatening or abusive messages from SMS, WhatsApp, or the lending app itself.
• Call recordings of conversations where threats or abusive language were used.
• The phone numbers from which you received the calls and messages.
• Any emails or letters received from the company or its agents.
• If they have contacted your relatives or friends, their statements can also serve as evidence.

How long will the investigation take?

The duration of a police investigation can vary significantly. Once an FIR is lodged, the police will start their investigation, which may involve tracing the phone numbers and identifying the individuals behind the harassment. This can take anywhere from a few weeks to several months. The subsequent court proceedings can be a longer process. However, the immediate goal of stopping the harassment is often achieved much faster, sometimes as soon as a legal notice is sent by your lawyer or an FIR is registered.

Advocate Sudhir Rao, Supreme Court of India