Finance firm employee accused of threatening loan defaulters

Udupi: A case was filed against a finance company in Surathkal for allegedly harassing a man and his daughter for not repaying loans. The case was booked under the newly framed Karnataka Micro Loan and Small Loan (Prevention of Coercive Actions) Ordinance, 2025.
In a complaint, Shamshad, 53, from Bailuru Korangrapadi village, said that along with his daughter Shahnaz, he availed a loan of Rs 30,000 each from a finance company in Surathkal. They regularly repaid the instalments but due to recent financial difficulties at home, they were unable to make timely payments.
They alleged that the finance company's representatives frequently visited their house, pressuring them to repay the loan along with high-interest charges. Despite requesting for more time to make the payments, the finance company refused to grant an extension.
On Feb 25, it is alleged that one of the finance company staff members illegally entered the complainant's house, abused both the complainant and his daughter with offensive language, and threatened their lives. A case was registered at the Udupi Town police station under sections 8, 12 of the Karnataka Micro Loan and Small Loan (Prevention of Coercive Actions) Ordinance, 2025, and sections 329(4), 351(2), 352 of BNS.