Hyderabad: Victims have lodged complaints against finance company recovery agents in Hyderabad, accusing them of resorting to aggressive and unlawful tactics during loan recovery operations.
A man travelling with his family from Nizamabad to Vijayawada was intercepted near Abdullahpurmet and blocked on the road for pending EMIs. Recovery agents allegedly forced him out of his car, improperly detained his family on the roadside, and seized their vehicle before departing.
According to the victim, he had informed them he would repay once he reached his hometown, but the agents refused to listen. He claims they used muscle tactics typical of “rowdy sheet holders and old criminals” hired to intimidate debtors.
Multiple victims allege that missing an EMI by even a week triggers harassment by third-party agents contracted by NBFCs. These agents are reportedly offered recoveries-based commissions, incentivising heavy-handed behaviour and public humiliation.
Observers point out that aggressive tactics by finance recovery agents echo broader industry concerns. In 2022, the Reserve Bank imposed restrictions after incidents of repossessions and intimidation, including one case in Rajasthan involving tractor seizure, calling them “unfair practices”. The Supreme Court has previously labelled certain agents a “group of goons” for misbehavior in repossession cases.
Telangana High Court has emphasised that recovery actions must follow due process and warned against harassment, advising civil suits instead of rogue on-road interventions.