Fair treatment of Customers in Servicing and Collection
Members shall either perform the recovery function in-house or engage an accredited recovery agent [10].
Members must ensure that borrowers are not unfairly discriminated against on grounds such as religion, caste, gender, marital status, sexual orientation, etc.
Members must ensure that there is no undue harassment or intimidation (physical or verbal) of customers, including practices such as calling (or threatening to call) any family member of the customer or any person associated with the customer sending inappropriate messages either on mobile or through social media, making threatening and/ or anonymous calls, etc. The Members must ensure that there is no coercion in the recovery process.
Members must ensure that its staff, agents, and representatives are adequately trained to deal with the customers in an appropriate manner and are not rude or humiliating in their dealings with the customer. Members must ensure compliance with the extant RBI guidelines. [11]
Members must ensure that its staff, agents, and representatives use respectful language, maintain decorum, and show respect to social and cultural sensitivities. Further, its staff, agents, and representatives must not contact borrowers at odd hours or at inappropriate times such as bereavement, illness, or social occasions such as marriages and births.
Members must ensure that their staff, agents, and representatives contact their borrowers only during normal hours (between 8:00 a.m. and 7:00 p.m.) for recovery of overdue loans.
Members must ensure that the recovery agent contacts the customer for recovery only after the associated RE has at the time of sanctioning the loan and at the time of allocating the recovery responsibilities, shared the name and details of such Member/ the recovery agent with the customers.
Members must have a mechanism as part of their grievance redressal framework for the redressal of recovery-related grievances, the details of which must be provided to the borrower in the key fact statement. It shall be sufficient compliance if the Member can re- structure/re-organize its existing redressal system to identify and promptly address recovery- related grievances.
The Members must set targets for the recovery agents based on a reasonable object criterion including an understanding of the repayment capacity of the customer.
The Members must ensure that the compensation matrix for the recovery staff should not solely be dependent on the quantum of recovery by an individual, and rather, it must be designed in a manner to align their behavior with fair interaction practices.
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