Dealing with Reliance ARC Calls Despite Settling Your Education Loan with SBI Bank

Introduction

It is a common concern for those who have settled their education loans with a bank through a one-time settlement (OTS) to receive further calls from Reliance Asset Reconstruction Company (ARC). This issue often arises due to miscommunication between the bank and ARC, or due to the ARC pursuing the remaining loan amount despite the closure of the account. This article aims to provide guidance on how to handle such situations effectively.

Understanding the Situation

After settling an education loan through a one-time settlement with a bank, it is crucial to obtain a No Dues Certificate (NDC). This certificate, issued by your bank, confirms that there are no outstanding dues on your account. When you receive calls from Reliance ARC, it is advisable to ignore them until you receive this official documentation in writing.

Communication with Reliance ARC

If you continue to receive calls, the first step is to verify the reference number being used by the ARC. Ensure that the reference number they are asking for matches the one provided by your bank. If there is a mismatch, communicate with the ARC and provide them with the NDC issued by your bank.

Additionally, inquire about the nature of the demand:

Are they asking for the full education loan amount or the remainder of the loan that was waived or written off? What is the exact amount they are demanding?

Under the one-time settlement, the bank may still claim that the remaining amount is due if they believe you are capable of paying. However, this is a remote possibility, and it is essential to consult your bank first before communicating with the ARC.

Complaint and Resolution Process

If the above steps do not resolve the issue, you can take the following actions:

Write a Complaint to SBI

Send a formal complaint to SBI detailing the closure of your account and the NDC issued by them. Request for SBI to take up the issue with Reliance ARC. If the problem persists, consider filing a complaint with the Reserve Bank of India (RBI) against both SBI and Reliance ARC.

Consider a Consumer Redressal Forum

You can also register a case in a consumer redressal forum against SBI. Keep a record of all the calls you receive from Reliance ARC to support your complaint. Collect evidence and maintain records of all communications and payments related to the education loan.

Conclusion

Handling calls from Reliance ARC after settling your education loan can be a frustrating experience. However, by understanding the situation, verifying the reference number, and taking affirmative steps to communicate and file complaints, you can effectively deal with this issue and avoid further harassment.