Loan Recovery Harassment Allegations Surface Against Individuals Claiming Association With SMFG

Serious allegations of harassment, privacy violation and cyber abuse have surfaced after Kolkata-based borrower Kasturi Chakraborty accused individuals allegedly linked to loan recovery operations of intimidation and abusive conduct following a missed EMI payment on a loan associated with SMFG India Credit.

According to the allegations, Kasturi Chakraborty had availed a loan under Loan Account Number 198102211848132. Due to financial difficulties, she allegedly missed only a single EMI payment. However, instead of receiving lawful recovery communication, she claims she was subjected to repeated harassment and abusive phone calls from individuals using mobile numbers 7082286511, 8826793824 and 9811743235.

The borrower alleges that the callers used threatening and abusive language during conversations, causing severe mental distress. It is further claimed that audio recordings of the calls are available as evidence.

The matter has become even more serious due to allegations involving misuse of personal data and AI-generated obscene content.

According to Kasturi Chakraborty, photographs submitted during the loan sanction process were allegedly misused to create obscene AI-generated videos without her consent. She has also alleged that unknown individuals contacted people from her personal contact list, despite her never authorizing the sharing of such information.

The borrower says she has no knowledge of how these persons obtained access to the contact details of her friends, relatives and acquaintances, raising alarming concerns regarding customer data privacy and handling of sensitive personal information.

Legal experts state that if such allegations are proven, the acts could amount to criminal intimidation, cyber harassment, defamation, identity misuse, privacy violations and offences under provisions of the Information Technology Act, 2000 as well as the Indian Penal Code and applicable provisions under India’s digital privacy framework.

The allegations have once again reignited concerns regarding the conduct of certain recovery agents operating in the financial sector. Consumer rights activists have repeatedly argued that while financial institutions have a legal right to recover dues, recovery methods involving intimidation, humiliation, misuse of personal data or public shaming are unlawful and unacceptable.

Financial industry observers point out that the Reserve Bank of India has issued various guidelines requiring banks and NBFCs to ensure that recovery agents maintain professionalism, avoid harassment and respect customer dignity and privacy during collection processes.

The case has now sparked wider discussions around digital abuse, AI misuse and the growing risk of personal photographs being weaponized for harassment purposes in financial disputes.

At the time of publication, no official statement had been issued by SMFG India Credit regarding the allegations made by Kasturi Chakraborty or the conduct of the individuals allegedly involved in the matter.