As a number of people have  started to default on their loans,  lending institutions have started hiring third parties for collection . collection activities include threatening and pressurizing defaulter . However, one does not need to take such parties seriously as there are laws that provide protection from harassment caused by them. The act for protection of people ( from both verbal and physical harassment) was passed in 1977, due to which now no one needs to worry that he or she would have to go to the jail he is unable to payback the loan at time.

Protection provided by law

Law prohibits threatening anyone for getting back one’s loan. Therefore, if anyone consciously take such action, he or she is answerable before law. No matter how big defaulter a person  is. No one has the right to threaten him  with the help of third party.