Keep recovery agents at bay by working out repayment terms with lender

In extreme situations, file injunction suit against the latter to prevent it from taking coercive steps

According to recent media reports, a 28-year-old man who took an online loan of Rs 5,000 from a mobile app was harassed by recovery agents to cough up Rs 4.23 lakh. And the Maharashtra government recently sent a notice to Google asking it to remove 69 apps suspected of using unethical practices to recover money from borrowers.

Adhil Shetty, chief executive officer (CEO), Bankbazaar.com says, “Lenders have the option to initiate recovery in case of defaults, but the Reserve Bank of India's (RBI) rules clearly stipulate that they shouldn’t resort to undue harassment.”

What constitutes harassment?

According to the apex