Generally the financial institutions can't forcibly take possession as clarified by Supreme Court. It needs to follow the due process of law. You can file Complaint against unauthorized charges imposed on you by them. No need to pay the illegal charges imposed on you.
Car loan defaulter solution
Hi, car loan of Rs 5 lakh taken from volkswagen finance pvt ltd banglore for period of 35 months, start EMI Date 07 june 2014 to End EMI Date 07 may 2017. total Emi paid 13 , emi defaulted 22 months emi amount was 16,429 Rs Car seized by volkswagen finance pvt ltd on may 2018. Finance company asking for pending amount as : Outstanding Principle 337,249.02 Interest Amount 39,002.45 Charges amount 203,013.00 Total Amount 579,264.47 ======= i want to wave off Charges amount 2,03,013 Rs which they has unnecessary add in excess a very huge amount . i am ready to pay outstanding principal amount + interest charges + car seizing charges and cheque bounces fine but reasonably amount . Thank you zargar J
Asked 7 years ago in Civil Law
8 Answers
Dear client,
Company must have processed through court order to confiscate car. Is there any arbitration clause in loan agreement than invoke same and plead for waiver of unnecessary charges.
1. It is not clear what is the terms of the loan agreement with regard to the interest and charges to be paid for default.
2. So without knowing the terms of the same it is not possible to advise whether the charges can be claimed to be waived or not.
3. if there is dispute on this you may consider filing a case before the consumer forum after sending them notice stating your willingness to pay the money as per your calculation.
ask finance company what is basis for claim of charges amount of Rs 203,013
2) what are clauses in your loan amount ?
3) is there any provisions for recovery of charges as claimed by financier
4)submit your offer in writing for payment of principal plus interest plus car siezure expenses
Please file your case in Debt Recovery tribunal and contest for removal of unnecessary charges and penalties and to release the car.
Other wise file a petition in the High Court.
Sir,
1. When the car seized by volkswagen finance, did they issue memo / notice to you?.
2. Issue legal notice to the bank asking for reasonable waiver to close the loan.
3. It is upto the bank to take call on the waiver.
In the present case scenario you should issue a legal notice to the financial institution asking them to give details of the charges amount to the tune of 203013 rupees.
Also state that you will be willing to settle this matter amicably if they can waive off the additional charges a and that you ready to pay the interest as well as principal amount.
You can talk to the Manager of the finance company about this and ask him to waive of the said excess amount, if not fully, at least half the amount.
If he is not agreeing, then you may give an application to the Lok Adalat functioning in the legal services authority within the court complex for negotiation and full settlement
Arbitration or lak adalat mediation will be the effective option since they have seized the vehicle.
