At SolvFree, we have compiled key guidelines on debt collection practices based on research from codes of conduct commonly followed by banks and lenders, in consultation with the Reserve Bank of India and the Indian Banks Association. This summary includes dos and don’ts for debt collectors:
1. Respect and Dignity: You have the right to be treated with respect and dignity. Debt collectors must not harass, humiliate, threaten violence, or use obscene or profane language. This principle applies to both parties involved.
2. Contact Hours: Debt collectors should generally contact you between 7 AM and 7 PM, unless you request otherwise.
3. Truthfulness: Debt collectors must not lie about the amount you owe, falsely claim to be attorneys or police officials, or threaten legal action that is not true.
4. Fair Practices: They must not engage in unfair practices, such as adding undue interest, fees, or other charges beyond the amount you owe.
5. Privacy During Visits: When visiting your residence, debt collectors must respect your personal space, maintain physical distance, and avoid embarrassing you in front of your family or neighbors.
6. Confidentiality: Debt collectors should not discuss your debt with anyone other than a co-borrower, supplementary cardholder, co-signatory, or loan guarantor.
7. Workplace Visits: They must not visit your workplace or other locations apart from your billing address without your consent. If you’re unavailable at your billing address, you may suggest an alternative meeting place.
8. Response to Queries: Debt collectors should address all your questions and comply with requests to speak with a supervisor or manager.
9. Call Frequency: If you’re behind on payments, collectors may call with reasonable frequency based on factors like the amount owed and your payment history. However, multiple calls in a day or back-to-back calls are considered harassment.
10. Adherence to Requests: Collectors must respect your request not to contact you or visit your workplace. They may ask for an alternative meeting place if necessary.
11. Permission for Conversation: Collectors should seek your permission before engaging in conversation and ensure it is convenient for you to talk.
12. Call Recording: Ideally, all collection calls should be recorded and logged by the collector.
13. Compliance: Creditors have the right to contact you if you owe money, but they must adhere to the guidelines set by the Banking Codes and Standards Board of India (BCSBI), established in 2006 by the Reserve Bank of India.
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