Loan recovery agents remain a menace in city

For two months, Surjan Singh Mehta has been harassed for a credit card dispute he claims he settled with a nationalised bank three years ago.

For two months, Surjan Singh Mehta has been harassed for a credit card dispute he claims he settled with a nationalised bank three years ago.

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An investment consultant, Mehta has been receiving threatening calls from recovery agents asking him to pay the bank Rs 41,754.

Mehta has now approached Delhi Police and the Consumer Disputes Redressal Forum for a respite.

“They have made my life miserable. They call me at odd hours and threaten me. They had offered me credit limit of Rs 75,000 on my credit card but actually it was Rs 10,000. I asked them to withdraw my card. The dispute was settled in 2006, but for the past two months these agents have been harassing me to pay Rs 41,754 that I never used,” said Mehta (52).

Mehta is not alone. Delhi Police this year received 1,228 calls from Delhiites alleging harassment by recovery agents.

“Action was taken in 1,034 cases, the rest are pending investigation,” said Rajan Bhagat, police spokesperson.

In 2005, Himanshu Sharma, a resident of Sriniwaspuri, was driven to commit suicide after recovery agents of ICICI Bank reportedly harassed him when he failed to pay an installment of Rs 1,338, a part of the loan that he had taken to buy a motorcycle.

Seven cases were registered and 10 agents were arrested.

Last year, the Crime Branch of Delhi Police had opened a help line for people facing harassment from recovery agents.

“We receive around four calls a day. Most of them pertain to recovery of credit card and automobile loans,” said a senior police officer.

Following a spate of such abuses by recovery agents, Reserve Bank of India, in March, made it mandatory for banks to conduct a police verification of the agents or employees of agencies entrusted with the job.

RBI also asked banks not to forward those cases to recovery agents for which a complaint has been lodged, till they have been disposed of.

“The Crime Branch was entrusted with the task, as it does not have any jurisdictional restrictions. Moreover, people have a centralised number where they can send their grievances,” police said.