Recovery Calls Continuing After You Settled the Loan

Who this guide is for

This guide is for you if your loan is settled or paid, but the lender or its recovery agents keep contacting you.

• You agreed a one-time settlement, paid it, but the calls never stopped.
• You closed the loan in full, yet agents still demand more money.
• Recovery agents are calling at odd hours, abusing you, or threatening your family.
• Agents are calling your office, relatives, or neighbours about your loan.
• You were promised a settlement letter or NOC and it has still not arrived.

What you can do this weekend

Friday evening

Build your proof file. Collect the settlement offer letter, the payment receipt or bank statement showing you paid the settled amount, and the settlement letter or NOC if you have it. Note the loan account number. Start a simple call log: date, time, number that called, who they claimed to be, and what was said. Screenshot any abusive or threatening messages.

Saturday

Act on both fronts on Saturday.

• If you do not yet have the settlement letter or NOC, email the lender's customer care and grievance officer and demand it in writing, quoting the loan account number and the date and amount you paid.
• Tell the lender, in the same email, that the loan is settled and that recovery calls must stop immediately, and that you are recording each call.
• If any call involves a clear threat of violence or harm, note the details and be ready to approach the local police.

Sunday

Put it on record formally. Send the representation in this guide to the lender's grievance or nodal officer, attaching the settlement proof and your call log. Demand the settlement letter or NOC and a written assurance that all recovery contact will stop. Save the complaint reference number and set a reminder to escalate to the RBI Ombudsman if the calls continue or there is no response.

Documents and evidence checklist

Step-by-step action plan

1. Confirm the loan is fully settled or closed. Check that you hold the settlement offer letter and proof of paying the agreed amount. If the lender has not yet issued the settlement letter or No-Dues Certificate, getting it is your first job, because it anchors every complaint that follows.
2. Start a dated call log. From now, record every recovery call and message: the date, time, the number that called, who the person claimed to be, and what was said. Save screenshots of any abusive or threatening texts. This log is your evidence.
3. Demand the settlement letter or NOC in writing. Email the lender's customer care and grievance officer asking for the settlement letter or No-Dues Certificate, quoting your loan account number and the date and amount you paid. A written demand creates a record even if a phone agent stalls.
4. Tell the lender the calls must stop. In the same email, state clearly that the loan is settled, that recovery contact must stop, and that agents are bound by the lender's Fair Practices Code on timing and conduct. Mention you are logging every call.
5. Raise a formal grievance with the nodal officer. If the calls continue, send the representation in this guide to the lender's grievance or nodal officer. Attach the settlement proof and your call log, and ask for a written assurance that all recovery contact will cease.
6. Note the complaint reference and track it. Save the complaint or service-request number the lender gives you, and keep all replies. If a call comes in after you complained, add it to the log as a fresh instance of harassment to cite later.
7. Escalate to the RBI Ombudsman if it does not stop. If the lender does not resolve it within the time allowed under the RBI Ombudsman scheme, or the calls keep coming, file a complaint on the RBI CMS portal at cms.rbi.org.in, attaching your settlement proof, call log and the lender's response.
8. Approach the police if there are genuine threats. If agents threaten you or your family, use abusive language, or turn up and intimidate you, that is a police matter. Take your call log and screenshots to the local police, and report abusive digital messages on the National Cyber Crime portal.

Escalation ladder

Copy-paste complaint template

Adapt the bracketed parts. Keep a copy of everything you send.

To,
The Grievance / Nodal Officer
[Name of bank / NBFC]

Subject: Recovery calls continuing after settlement of loan account [Loan A/c No.] - issue settlement letter / NOC and stop all recovery contact

Dear Sir/Madam,

I had a loan account [Loan A/c No.] with you. As per the settlement offer letter dated [date], I paid the agreed one-time settlement amount of Rs. [amount] on [payment date], through [mode / reference]. Proof of payment is enclosed.

Despite the account being settled, your recovery agents continue to call and contact me. Some recent instances:
- [date], [time] - from number [number] - [brief note of what was said]
- [date], [time] - from number [number] - [brief note of what was said]

This contact is causing me distress, and the conduct/timing is contrary to the Fair Practices Code applicable to your recovery agents.

I request you to:
1. Issue me the settlement letter / No-Dues Certificate (NOC) for this account immediately, confirming it is closed for the agreed amount.
2. Direct your staff and recovery agents to stop all calls, messages and visits regarding this settled account with immediate effect.
3. Confirm the above to me in writing.

Please treat this as a formal grievance and share a complaint reference number. I am maintaining a dated log of every call and message.

If this is not resolved within the time allowed, I will approach the RBI Ombudsman through the CMS portal, and report any threats or abuse to the police.

Documents enclosed: settlement offer letter, proof of payment, call log.

Thank you.

[Your full name]
[Registered mobile number]
[Registered email]
[Date]

When RTI can help

RTI helps only when the records you want sit with a public authority. For this problem, that means the lender is a public-sector body, or you are seeking records held by a regulator or the police.

• If your loan is with a public-sector bank or a government-owned lender, you can file an RTI with its Public Information Officer asking for the settlement record, the closure status of your account, and the action taken on your grievance about recovery calls.
• RTI is useful when a public-sector lender stays silent and you need a dated, on-record answer to push your grievance or an Ombudsman complaint.
• If you filed a police complaint about threats, you can use RTI to ask the police authority for the status or action taken on it.

When RTI will not help

RTI does not work against a private bank, NBFC, or a private recovery agency, because they are not public authorities. Most retail loans are with private or non-banking lenders, so RTI is usually the wrong tool to stop recovery calls.

The correct first remedies here are the grievance and complaint routes, not RTI:

• Raise it with the lender's customer care, then its grievance or nodal officer, in writing.
• If unresolved within the time the RBI Ombudsman scheme allows, complain to the RBI Ombudsman on the CMS portal (cms.rbi.org.in) or via helpline 14448.
• For threats, abuse or intimidation, go to the local police; report abusive digital messages on the National Cyber Crime portal (cybercrime.gov.in) or helpline 1930.
• If the harassment caused you loss and is a deficiency in service, you can also file at a consumer commission through e-Daakhil (edaakhil.nic.in) or the National Consumer Helpline.

Common mistakes to avoid

• Paying a settlement on a phone promise without getting the settlement letter or NOC in writing.
• Not keeping a dated log of calls, so you have no evidence when you complain.
• Arguing only over the phone and never sending a written grievance the lender must answer.
• Assuming a one-time settlement is the same as a full closure on your credit report - it is usually reported as 'settled', which can hurt future borrowing.
• Letting agents call your relatives or workplace without flagging it as a breach of conduct.
• Jumping to the Ombudsman or police before giving the lender a dated grievance and its allowed response time, except where there is a real threat.

FAQs

Can recovery agents call me after I have settled the loan?

No. Once the loan is settled or closed for the agreed amount, the lender has no basis to keep chasing you. Get the settlement letter or No-Dues Certificate as proof, then treat any further recovery call or visit as something you can complain about. Send a written grievance to the lender's nodal officer and escalate to the RBI Ombudsman if it continues.

What proof do I need that the loan is settled?

Keep the settlement offer letter showing the agreed amount, your payment receipt or bank statement for that payment, and above all the settlement letter or No-Dues Certificate confirming the account is closed. If the lender has not issued the settlement letter or NOC, demand it in writing first, because it anchors every complaint you make.

Are recovery agents allowed to threaten or abuse me?

No. Recovery agents must follow the lender's Fair Practices Code. They cannot use abusive language, threaten you or your family, or contact you at odd hours. Log every call and save abusive messages. Raise it with the lender's grievance officer and the RBI Ombudsman. Genuine threats of harm are a police matter - report them to the local police.

Does RTI help me stop recovery calls after settlement?

Only if your lender is a public-sector bank or government-owned body, since RTI applies to public authorities. Then you can ask its Public Information Officer for the settlement and closure records and the action on your grievance. For a private bank, NBFC or private agency, RTI does not apply - use the grievance route and, if needed, the RBI Ombudsman and the police.

How do I complain to the RBI Ombudsman about recovery harassment?

First give the lender a written grievance and its allowed response time. If the calls continue or you are unhappy with the reply, file on the RBI CMS portal at cms.rbi.org.in, or call helpline 14448. Attach your settlement proof, your dated call log, and the lender's response so the Ombudsman can see the full picture.

Is a one-time settlement the same as fully closing the loan?

Not on your credit record. A one-time settlement usually gets reported to the credit bureaus as 'settled', not 'closed', which can make future borrowing harder. A full closure, where you pay the entire outstanding, is reported as 'closed'. Whichever you did, get the matching letter in writing and check your credit report later.

What should I do if agents call my relatives or office?

That conduct usually breaches the lender's Fair Practices Code. Note who was contacted, when, and from which number, and add it to your call log. Raise it specifically in your written grievance to the lender's nodal officer as improper conduct by its agents, and cite it again if you escalate to the RBI Ombudsman.

Who do I go to first - the lender, RBI, or the police?

Start with the lender's grievance or nodal officer in writing, and give the response time the RBI Ombudsman scheme allows. If it is not resolved, go to the RBI Ombudsman on cms.rbi.org.in. But if any call involves a real threat of harm or intimidation, go straight to the local police with your call log and screenshots, without waiting.

Clear next steps

• Pull together your settlement offer letter and proof of paying the agreed amount, and save them in one place.
• Start a dated call log now and screenshot any abusive or threatening messages.
• Email the lender's grievance officer using the template here, demanding the settlement letter or NOC and an end to all recovery contact.
• Note the complaint reference number and set a reminder to escalate to the RBI Ombudsman on cms.rbi.org.in if the calls do not stop.
• If there is any genuine threat, take your evidence to the local police straight away.