Recovery Agents Prove Costly for Truck Financier: A Cautionary Tale The Supreme Court's recent order to pay Rs 15 lakh as a cost to a truck financier has highlighted the risks of using recovery agents in debt collection.
At first glance, this may seem like an isolated incident, but closer examination reveals a more complex issue that sheds light on India's credit market.
A truck financier hired a recovery agent to collect debts from defaulting borrowers, and the Supreme Court subsequently ruled that the financier was liable for any damages or losses incurred by the recovery agents.