Role of Recovery Agents: - Recovery agents are individuals or agencies appointed by banks, financial institutions, or creditors to recover outstanding dues from borrowers. - Their tasks include sending reminders, negotiating settlements, collecting payments, and, if necessary, repossessing assets under lawful procedures. Legal Limitations and Guidelines: 1. RBI Guidelines: - Recovery agents must adhere to the Reserve Bank of India (RBI) guidelines to ensure ethical and lawful recovery practices. - Banks must provide proper training and certification to recovery agents before employing them. 2. Code of Conduct: - No harassment or abusive language. - No use of force or intimidation. - Collection calls are restricted to prescribed hours (generally 7 AM to 7 PM). 3. Fair Practices Code: - Recovery agents must identify themselves and provide details of the agency and the bank they represent. - They should respect the privacy of the borrower and avoid discussing debts with unrelated parties. 4. Legal Recourse for Misconduct: - Borrowers can file complaints against recovery agents for harassment or unlawful actions. - Complaints can be made to the bank, the RBI, the police, or the courts, depending on the severity of the violation. 5. Civil and Criminal Liability: - Recovery agents may face civil suits for damages or criminal charges for harassment, trespassing, or intimidation. - Banks can also be held accountable for employing unethical recovery practices. 6. Debt Recovery Through Legal Means: - If recovery agents fail to recover dues amicably, the creditor may file a suit under the Civil Procedure Code, 1908, or approach Debt Recovery Tribunals (DRTs) under the Recovery of Debts and Bankruptcy Act, 1993.