Harassed by Loan Recovery Calls for a Debt You Never Owed? Here’s the Legal Way Out

One of my clients recently had a case which I am explaining below and if you are stuck in such similar situation, here is what to do.

Note: Due to attorney-client privilege, I cannot disclose complete case details or identify the actual parties involved. However, I am sharing the essential facts and legal approach so that if you find yourself in a similar situation, you can understand the available solutions and legal remedies.

TL;DR: When a loan recovery agent calls you for a debt that isn’t yours, you can send them a written denial and demand to stop contact. If they persist, block them, gather call logs and recordings, file a police complaint, and escalate to the RBI Ombudsman if a regulated lender is involved.

A young IT professional from Pune—let’s call him Arjun Mehta—was close to his former team lead, Rohan Gupta, who worked out of the Indore office. Over several months, Rohan borrowed small sums from Arjun. When Arjun realised the money was never coming back willingly, he firmly recovered every rupee and cut off further lending. That should have been the end. But some people don’t take rejection well.

Roughly six weeks later, around 12 April 2025, Arjun’s phone started buzzing non-stop. Unknown numbers. Aggressive callers claiming he had “guaranteed” a personal loan of ₹1.2 lakhs taken by Rohan from a digital lending app called KreditBee. Arjun had never signed any loan document, never given consent to be a reference, and certainly never acted as a guarantor. Yet the calls kept coming—sometimes 20 a day—with threats of legal action and visits to his Pune home.

Arjun tried reasoning with the callers. They didn’t care. He emailed the lender’s customer support. Silence. Then he approached the Chamber of Advocate Sudhir Rao, where the matter was quickly identified as a mix of criminal intimidation and a flagrant violation of RBI’s fair practices code. Advocate Sudhir Rao and his office crafted a calibrated strategy: a sharply-worded legal notice to the fintech company, a formal complaint to the cybercrime cell in Pune, and a simultaneous complaint to the RBI Ombudsman for regulated lenders. Within ten days, the calls stopped. The company terminated its relationship with the recovery agency that had used Arjun’s number without verification.

The core legal answer here doesn’t depend on whether the loan exists. You never consented to be a reference, you never signed a guarantee, and you owe nothing. That’s your shield.

Key Facts of the Case

• The client never applied for any loan nor executed any guarantee document with KreditBee or any other lender.
• The former colleague, Rohan Gupta, unilaterally listed the client’s mobile number as a “reference” without consent, possibly during an online loan application process.
• The recovery agents contacted the client more than 20 times a day, using abusive language and threatening to visit his residence.
• The client had no contractual relationship with the lender and had explicitly communicated this to the callers.
• Despite the denial, the harassment persisted, prompting a multi-pronged legal approach through criminal, cyber, and regulatory channels.
• No physical or digital evidence existed that could link the client to the loan as a borrower or guarantor.
• The lender’s recovery agent had failed to conduct basic due diligence before initiating coercive collection calls.

The Direct Legal Answer

Can I file a cybersecurity complaint?

Yes. Unauthorised use of your phone number and persistent harassing calls can be reported to the cybercrime cell. The IT Act, 2000, particularly Section 66E (violation of privacy) and Section 43 (unauthorised access to personal data) may apply. You can file a complaint online at cybercrime.gov.in or visit the local cyber cell in your city.

Should I just ignore the calls and block them?

Blocking and ignoring is a first step, but it won’t stop aggressive lenders. You must create a written record—send an email or WhatsApp message clearly stating you are not the borrower, you never consented to be a reference, and you withdraw any implied consent to be contacted. Keep a screenshot. This message becomes crucial evidence if you later need police help.

Can I sue the lender for harassment?

Yes, you can file a criminal complaint under Section 351 BNS (criminal intimidation) if the calls carry threats. Even without threats, persistent unwanted calls may constitute the offence of stalking under Section 77 BNS if the conduct causes alarm or distress. Civilly, you can issue a legal notice demanding cessation and damages, and if a regulated entity violates RBI’s fair practices code, complain to the RBI Ombudsman.

Advice in Such Cases

Consult with Lawyer: The very basic and important step to start is talk to Lawyer / advocate. You should not hesitate in paying his consultation fee i.e. might be in range of Rs. 10,000 to 50,000 depends case to case. He is helping you in this situation to come out. He is expert in the domain and can help you explain the procedure which you might have never explored. A good lawyer can get the issues resolved much faster than you think.

Never confirm any details to the callers—even your name or address. Many recovery agents fish for additional data. Send a crisp written denial via email and registered post to the lender’s grievance officer. The RBI mandates every regulated lender to have a grievance redressal mechanism. If no action is taken within 30 days, escalate to the RBI Ombudsman. And here’s the thing—most people assume a general practice lawyer can handle such harassment complaints. They can, but a lawyer who routinely deals with cyber and financial fraud knows exactly how to draft a notice that makes lenders back off within days.

Applicable Sections of Law

• Section 351 BNS: Criminal intimidation—covers threatening language used during recovery calls.
• Section 77 BNS: Stalking—can be invoked if repeated calls cause distress even without explicit threats.
• Sections 43 and 66E, Information Technology Act, 2000: Unauthorised use of personal data and violation of privacy.
• RBI Master Directions on Digital Lending, 2022: Regulated entities must follow a fair practices code; recovery agents cannot call before 8 am or after 7 pm, and cannot use intimidation.

Punishment and Penalties

Under Section 351 BNS, criminal intimidation is punishable with imprisonment up to two years, or fine, or both. For stalking on first conviction, Section 77 BNS provides imprisonment up to three years and a fine. Both offences are non-bailable and cognizable, meaning the police can arrest without a warrant and bail is not automatic. The offences are compoundable—the victim and accused can compromise with the court’s permission. Under the IT Act, Section 66E violation of privacy carries imprisonment up to three years or fine up to two lakh rupees, or both.

Jurisdiction — Where to File the Case

For a criminal complaint, the jurisdictional police station is where the victim receives the harassing calls—in Arjun’s case, Pune. You can file an FIR at the nearest police station, and if they refuse, approach the Superintendent of Police. For cybercrime, you can file online through the National Cyber Crime Reporting Portal or visit the cyber cell in your city. The RBI Ombudsman has jurisdiction over the lender’s registered office; you can file online irrespective of your location. The Magistrate Court in your local district also has jurisdiction to take cognizance of a private complaint under BNSS.

What if Police Refuse to File FIR?

• Under Section 173(4) BNSS, if the police officer refuses to register an FIR, you can submit a written complaint to the Superintendent of Police, who must investigate or direct an investigation.
• If that fails, file a private complaint before the jurisdictional Magistrate under Section 175(3) BNSS, who can order investigation under Section 156(3) BNSS.
• As a last resort, you can approach the High Court under its writ jurisdiction for a direction to register FIR.
• Always carry your written complaint, call logs, and recordings when you approach the SP or the court.

Rights of the Accused

• Right to remain silent and against self-incrimination under Article 20(3) of the Constitution.
• Right to legal representation of your choice under Article 22 and Section 341 BNSS.
• Right to be produced before a Magistrate within 24 hours of arrest, excluding travel time.
• Right to receive a copy of the FIR and to know the grounds of arrest.
• Right to bail in bailable offences; for non-bailable offences, you can apply for regular or anticipatory bail.

Bail Provisions

If an FIR is registered under Section 351 BNS (criminal intimidation) or Section 77 BNS (stalking), the offences are non-bailable. However, the accused can apply for anticipatory bail under Section 482 BNSS before arrest, or regular bail under Section 480 BNSS after arrest. Courts typically grant bail, especially if the accused is a first-time offender, with conditions like not tampering with evidence and appearing for investigation. Strategy: apply for anticipatory bail immediately upon learning of the FIR to avoid custody.

Quashing of FIR / Case

The High Court can quash an FIR under its inherent powers in Section 528 BNSS if the FIR does not disclose a prima facie offence, or if it’s an abuse of the process of law. In these harassment cases, quashing is usually sought by the lender’s recovery agents if they can show the calls were not threatening, but if you are the victim, you’d want the investigation to continue. However, if you and the lender reach a settlement, you can jointly apply for quashing based on a compromise.

If You Are the Victim

• Stop engaging verbally with the callers—insist on communication by email or registered post.
• Send a clear written denial and cease-and-desist notice within 48 hours of the first call.
• Block the numbers, but before blocking, record at least 2-3 calls and take screenshots of your call log showing repeated entries.
• If the calls don’t stop, file a complaint with the local police station and the cybercrime portal within a week.
• Check if the lender is RBI-regulated; if so, file an RBI Ombudsman complaint alongside the police complaint.

Documents You Must Keep Ready

• Identity proof: Aadhaar card or PAN card.
• Address proof: Utility bill or rental agreement.
• Mobile phone bill or subscriber details linking the number to you.
• Written communication sent to the lender/recovery agent (email and postal receipts).
• Screenshots of call logs showing repeated numbers, date, and time.
• Any audio recordings of threatening or harassing calls (transferred to a pen drive).
• Copy of the legal notice sent by your advocate.
• Details of the lending app or company name, as it appears in the caller’s disclosure.

What Evidence Is Required?

• Call detail records from your telecom provider, establishing frequency and duration of harassment.
• Audio recordings of calls where the agent refuses to accept your denial or uses abusive language (record with prior warning, in states where consent is required).
• Screenshots of SMS or WhatsApp messages from the recovery agents.
• A written log maintained contemporaneously noting date, time, caller’s name/ID, and summary of each call—this serves as secondary evidence if phone data is lost.
• Email trail of your complaints to the lender’s grievance officer.
• Acknowledgment of your police complaint or cybercrime report.
• If the lender is regulated, any communication from the RBI Ombudsman post-complaint.

How the Police Behave in Such Cases

Police stations often treat harassment by loan recovery agents as “civil disputes” and may initially refuse an FIR. Be prepared to explain that threats or repeated stalking-like calls are criminal offences under BNS. Carry a printed copy of the applicable sections and a written complaint. The cyber cell, on the other hand, is usually more receptive to online complaints for privacy violations. Persistence and a well-documented complaint packet help push the police to act.

Timeline of Legal Process

• Pre-litigation: Send legal notice and file regulatory complaints—1 to 2 weeks.
• FIR registration: If police accept, immediately; if they refuse, approach SP—adds 1 to 2 weeks.
• Investigation: Once FIR is lodged, investigation (recording statements, collecting call records) typically takes 60–90 days before a chargesheet is filed.
• Cognizance and trial: The Magistrate takes cognizance of the chargesheet and issues summons—1 to 3 months.
• Trial: Summons trial for such offences; evidence, cross-examination, arguments—minimum 6 months to 1 year.
• Judgment and appeal: The final order can be challenged in Sessions Court within 30 days.

How Long Will the Investigation Take?

For offences under BNS Sections 351 and 77, the police are expected to complete the investigation and file a chargesheet within 90 days. In practice, it may take about two months if all call records and witness statements are procured. The cyber cell investigation may run parallel and can be completed within a similar timeframe.

Understanding the Costs

The total cost of a matter like this varies significantly from one case to the next — it depends on the complexity of the dispute, the forum involved, the number of hearings, and the specific facts of your situation. There is no single fixed figure that applies to everyone.

A professional advocate can give you an accurate estimate only after reviewing all your facts and documents in a consultation.

Can the Matter Be Settled Out of Court?

Yes. The offences under Section 351 and Section 77 BNS are compoundable—meaning the victim and the accused can enter into a compromise with the court’s approval. Often, a well-drafted legal notice prompts the lender to settle, agree to stop calls, and even pay nominal compensation to avoid a police case. Mediation is also possible, though in harassment cases, direct settlement between the victim and the recovery agency is more common. If a regulated lender is involved, the RBI Ombudsman can facilitate resolution without litigation.

Common Mistakes People Make

• Ignoring the calls indefinitely, hoping they’ll stop—this only emboldens aggressive recovery agents.
• Verbally arguing with callers and inadvertently confirming personal details, which they may record and misuse.
• Failing to document the harassment; without call logs, screenshots, and recordings, it’s hard to prove criminal intent.
• Approaching the lender’s regular customer service instead of the nodal grievance officer—the latter is mandated by RBI to respond in 30 days.
• Delaying the complaint to the RBI Ombudsman or the cybercrime cell, losing precious time while the harassment escalates.
• Hiring an advocate who doesn’t routinely handle unregulated digital lending and cyber harassment—these matters often get stuck because the lawyer is unfamiliar with RBI circulars, IT Act provisions, and the BNSS procedure for compelling an FIR.

FAQs People Normally Have

Can the loan company sue me if I was only a reference?

No. A mere reference, especially one given without your consent, creates no contractual liability. Only a co-signer or guarantor who signed documents can be held liable. You owe nothing.

Will my credit score be affected?

It should not be. The loan was never in your name, and you never signed a guarantee. If, by some error, it shows up on your CIBIL report, file a dispute with the credit bureau immediately and attach your written denial and police complaint.

Is it better to change my phone number?

Changing your number is a last resort. It’s disruptive and doesn’t stop the lender from harassing the next person whose number they have. Legal action protects you and creates a record against such practices.

Can I block the numbers and be done with it?

You can block them, but aggressive recovery agents often use multiple numbers. Blocking alone rarely solves the problem. You need a formal cease-and-desist communication and, if necessary, police intervention.

This article is general legal information, not legal advice. Consult a qualified advocate about your specific situation.

Advocate Sudhir Rao, Supreme Court of India

Facing a similar matter? Speak to a Delhi criminal defence lawyer — Advocate Sudhir Rao appears in bail, trial and appellate matters before the Delhi District Courts, the Delhi High Court and the Supreme Court of India.