How to Deal with Credit Card Debt Collectors in India: A Complete Guide
January 16, 2026
No Comments
Read More »
Credit card debt can feel overwhelming. By May 2025, 11.11 crore credit cards are active in India, among which ₹6,742 crore are defaults and ₹2.9 lakh crore are outstanding debt. With rising defaults, the stress levels of debtors rise as calls from credit card debt collectors start. Many credit card debtors use emotionally-exhausting tactics, borderline harassment, to get the debt paid as soon as possible.
With the rising credit card debt, most people feel anxious and confused. However, help is possible as even debtors have rights protecting them from such harassment.
This guide explains everything about dealing with debt collectors in simple, clear terms. SingleDebt assists in dealing with harassment from credit card debtors with its experienced legal support team.
Dealing or negotiating with debt collectors gets easier once you become accustomed to the rights mentioned under the following acts:
These acts point out the following key rights against debt collectors:
RBI guidelines clearly state the borrowers’ right to be dealt with fairness and respect. Debt collectors are advised to speak politely during every interaction. Harsh language, including threats, insults, or abusive tone, is not allowed under any condition.
Borrowers can inform the agency or the bank about the behaviour and request a change of representative if the behavioural pattern persists.
RBI rules specify clear timing limits for debt collectors’ interaction with borrowers (between 7 AM and 7 PM). Late-night or repeated calls outside these hours are considered harassment.
If a collector contacts you at odd hours, you should first inform them politely that such timings are not permitted. In case such behaviour is repeated, borrowers can always complain to the banks for a personnel change.
A collector is required to share the outstanding balance, interest charges, penalties, and due dates with the borrower. They must also reveal whether the debt is still owned by the bank or assigned to a recovery agency. Borrowers have the right to request documents confirming the debt and its updated status.
This includes account statements, formal notices, or any official communication from the bank.
If the communication feels stressful or disrespectful, borrowers can request that the collectors stop calling. A written request can be sent to the bank or agency for the same. Once this notice is acknowledged, collectors must shift communication to email or written letters only.
If a debt collector violates any guidelines mentioned above, you have the right to take action. Complaints can be filed with the bank’s grievance cell first. If no action is taken, you can escalate it to the Banking Ombudsman or use official RBI complaint channels.
Serious harassment can also be addressed with legal authorities by sharing call recordings, screenshots, or evidence of misconduct.
SingleDebt expertly handles the debt management issues with its harassment relief services. Our legal team helps with call recordings, mail handling, and even communicating with debt collectors. Our in-house advocates also fight cases on your behalf for any property or asset damages by recovery agents. These cases are handled by us on a ‘No Win, No Fee’ basis i.e. we don’t take any fee until we secure a win for you.
Negotiating with debt collectors is a great alternative to reduce charges, ease pressure, and even get better repayment terms. Regardless of common belief, credit card debt collectors themselves are often open to negotiating, as they are under pressure to close the account.
Here’s how you can follow through with negotiation:
To avoid making promises you cannot keep, it’s crucial that you understand your financial condition first. Start by:
If a collector demands an unrealistic EMI, you can state your actual capacity.
Once your capacity is known, a structured EMI plan can be requested from the collector. These plans spread the outstanding balance into smaller, steady monthly payments.
By following through with this plan, you will gradually reduce mental pressure and prevent sudden cash flow problems.
If EMIs are out of the question for you, a One-Time Settlement (OTS) may be considered. In this method, a lump-sum payment is offered to close the account. In many cases, borrowers pay only 40–70% of the total dues, depending on the debt’s duration, the bank’s policies, and your negotiation expertise.
However, this option should be evaluated carefully. A settled account can affect your credit score. Lenders may see it as partial repayment, leading to a possible reduction in your ability to get loans in the future.
Written proof plays a massive role in dealing with debt collectors. Verbal promises may be denied later, and miscommunication may occur. This could lead to future disputes arising if the agreed-upon terms are not followed.
To avoid these issues, every agreement, including EMI schedules, settlement letters, waived charges, and payment deadlines, should be in writing.
A Debt Management Plan is a repayment arrangement where a borrower pays off credit card dues and multiple creditor payments through a single monthly payment under a negotiated plan.
A DMP may help in:
A credit counselling agency or debt advisory platform like SingleDebt works with lenders to simplify repayment. Professionals at SingleDebt have one goal: Not to avoid repayment but to make it manageable for you. Reach out to know more details about the repayment plan.
Dealing with debt collectors can feel stressful, but you are never powerless. Your rights are protected, and many safe options exist to manage overdue amounts.
With the right assistance from experts like SingleDebt’s in-house team of advocates and paralegals, your financial stability can be rebuilt, and peace of mind can be restored.
No, calls cannot be made at odd hours. RBI guidelines restrict their calling window. Calls are allowed only during reasonable daytime hours. Harassment through repeated calls is not permitted and can be reported.
You have the right to respectful communication. Harassment is not allowed. Collectors must share accurate debt details. You can request written contact.
Yes, negotiation is possible. Collectors often agree to settlements or reduced charges. You can request a structured EMI plan. You can also propose a lump-sum settlement depending on your capacity. You can also rely on SingleDebt’s legal advisers’ expertise in crisis management to handle this part of the process for you seamlessly.
Yes, settlements impact credit scores. The account may show as “settled” instead of “closed.” Future lenders may view this negatively. But a settlement still offers immediate relief and stops further collection action.
