Still Getting Calls After Loan Settlement? Here’s What to Do
You’ve worked hard to settle your loan, cleared the dues, and received confirmation yet, the recovery calls haven’t stopped. Unfortunately, this is a common issue faced by many borrowers after settlement. Even after the payment and agreement are finalized, some banks, NBFCs, or collection agencies fail to update their records promptly. As a result, the borrower continues to receive calls or messages demanding repayment on an already-settled account.
At SettleRoot, we understand how stressful this can be. That’s why our Post Settlement Protection (PSP) service is designed to ensure that your settlement is completely closed, your records are updated across systems, and all harassment stops permanently.
Why Do Recovery Calls Continue After Settlement?
Even after settling your account, there are several reasons you might still be getting calls:
1. Delayed Record Updates: The lender may not have updated your loan status from “active” to “settled” or “closed.”
2. Third-Party Collection Errors: The collection agency may not have been informed about your settlement.
3. Incomplete Documentation: The final No Objection Certificate (NOC) or closure letter might not have been issued or uploaded to credit bureaus.
4. Credit Bureau Mismatch: Sometimes, the settlement reflects incorrectly in your CIBIL or Experian reports, causing confusion among agents.
In short you’re not at fault. It’s a process error, and you have every right to stop these unnecessary calls.
Steps to Take If You’re Still Getting Recovery Calls
If you’re facing this issue, here’s what you should do immediately:
1. Keep Proof of Settlement
Always maintain a copy of your settlement letter, payment receipt, and any email or written confirmation from the lender. These serve as your defense against wrongful follow-ups.
2. Ask for a Written Clarification
If a recovery agent calls, calmly inform them that your account is settled and request them to check with the lender. You can also send a written complaint to the bank’s grievance department, attaching proof of settlement.
3. Obtain Your NOC (No Objection Certificate)
An NOC is the official proof that your loan has been closed. Without it, your case may remain “open” in the lender’s system. SettleRoot’s PSP team ensures that you receive your NOC on time and verifies its authenticity directly with the bank.
4. Report Harassment
If calls persist even after formal communication, you can file a complaint with:
• The bank’s nodal officer,
• The RBI Banking Ombudsman, or
SettleRoot can guide you through this entire process and even Help to draft complaint letters for official submission.
5. Update Credit Reports
Once your NOC is received, check your CIBIL, Experian, and Equifax reports to ensure the loan is marked as “closed” or “settled.” Any mismatch can trigger future calls or impact your credit score.
How SettleRoot’s PSP (Post Settlement Protection) Service Helps
Our Post Settlement Protection (PSP) service was created for exactly this situation — to ensure that settlement really means closure.
Here’s how PSP helps you step-by-step:
• Verification with Lender: We directly coordinate with your lender to confirm that your account is fully settled and all systems reflect closure.
• NOC Follow-Up: Our team ensures you receive your official No Objection Certificate promptly and verify its accuracy.
• Stop Harassment Calls: We communicate with the bank and their collection agencies to put a complete stop to recovery calls after settlement.
• Documentation & Record Maintenance: We provide you with a comprehensive closure file containing settlement proof, NOC, and correspondence records for your safety and peace of mind.
Why Post Settlement Protection Matters
Many borrowers assume that once they’ve made their final payment, the process ends there. In reality, unresolved documentation and record delays can cause long-term problems such as:
• Continued recovery agent calls
• Difficulty obtaining new loans due to unsettled status
• Credit score discrepancies
• Legal or collection notices for already-closed accounts
PSP ensures this never happens. It’s your safeguard against miscommunication, record delays, and harassment — giving you peace of mind and full financial closure.