Court Cracks Down on Harassment by Finance Companies – Relief for Borrowers
NEWS CHARIOT:-In a significant move, the Hanmakonda Third Additional Court has taken a stern stand against harassment by finance companies, offering long-awaited relief to borrowers. The court has issued interim orders directing finance institutions to immediately cease physical and mental harassment of debtors, especially women and children, marking a major setback for aggressive recovery agents.
The case that triggered this action involved Bachalakuri Suresh, a resident of Karunapuram, Dharmasagar Mandal, who had availed loans from JM Home Loans, Equitas Small Finance Bank Ltd, and Kotak Mahindra Bank. Suresh alleged that recovery agents from these institutions were abusing and harassing his family under the guise of collecting dues. The threats escalated to such a level that his family was forced out of their home and publicly humiliated.
Represented by advocate Uppari Shankar, Suresh moved the court seeking protection. The legal counsel argued that these companies were violating RBI guidelines by applying undue pressure and allowing recovery agents to intrude into borrowers’ personal lives. The court, headed by Judge Priyanka Siricilla, acknowledged the mental and physical trauma inflicted and responded with an interim stay order, instructing the companies to halt all forms of harassment and avoid interfering in Suresh’s personal or professional life.
This ruling has sent shockwaves through private banks, app-based lenders, and credit card agencies, many of whom have been accused of employing coercive tactics. The order emphasizes the legal protection available to victims and signals a broader judicial crackdown on unethical debt recovery practices.
Borrowers across the region are now breathing a sigh of relief, hopeful that this judgment will lead to more humane and regulated loan recovery practices.
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