Ask the bank as to whether car seized by them has been auctioned ?
what happened to sale proceeds ?
Car seizure done 3 years bank and fresh notice received
Hi, I had taken a car loan in 2018, everything was fine until Corona & I couldn't pay emi from March'20. On August-2022 my car was seized on the road by recovery agents while I was heading for an interview. Next day I went to police & informed where in police called that recovery person & said he has sent the car to Bank. November -22 onwards all the Cibil sites displayed as loan closed. Mean while I had other loans with same bank & I gradually closed in 2024 everything. In March 2025, I am again getting a letter of outstanding demand for my car loan for double the loan amount. What all options are available with me to conclude this matter ??
Asked 1 month ago in Consumer Law
12 Answers
- Ascertain by giving lawyer's notice what the lender did with vehicle. Whether it auctioned and auction amount deposited, whether any notice issued to you before auction, any public notice is issued inviting bids for vehicle, whether the auction amount deposited in your account. If the said procedure is no followed, sale of vehicle is illegal.
- Issue a proper reply to the notice giving accounts of payments made, seizure of vehicle, auction of vehicle if there is any, the bid amount collected and deposited in your accounts informing the loan is settled warning lender not to issue such notices warning of legal action.
- If lender persists you can seek direction to them from Court not to issue such notices with payment of compensation to you.
Total principle outstanding at the time of seizure was 9.5 lacs. As per the demand received this week it says "after repossessed & subsequently sold the collateralised asset, after applying sale process against related expenses and outstanding loan balance, the balance remains an unresolved deficit of 9.8 lacs." Among everything all I was aware of that my vehicle was seized illegally and later, I viewed in CIBIL as loan closed. And now after 3 years of that new demand of this amount is received. Non of bank letters regarding the same is been received by me ever. Please suggest..
Asked 1 month ago
If the last transaction took place before three years, their demand is time barred. If that is the case don’t communicate or pay any part of demand, not even a single rupee. Any payment or communication will review the liability. Check the date of last transaction.
[deleted] was the date of seizure, however after that no info or communication of any sort has happened. Its not completing 3 years time period. And notice is received. Please suggest/ advice next course of action.
Asked 1 month ago
CIBIL site is not an authority to close the loan.
As the financier after seizing the vehicle might have transferred the loans to the recovery agents, they will not be bothered whether the loan reflects as closed in the CIBIL or not, the computer generated loan repayment demand notice will keep coming.
you may enquire from the bank about this and ascertain the facts of the sale of vehicle and adjustment towards the car loan etc.
You can issue a legal notice to the bank stating that the loan ha been since closed as reflected in the CIBIL website, what is this loan notice is being served on you frequently?
Until and unless you take legal steps you may not find a solution for this.
An aggrieved customer has to start by filing a written complaint with the regulated entity (RE), such as a bank or non-banking finance company. If the complaint is rejected by the RE, it is automatically sent to the Internal Ombudsman of the RE.
you can approach a local advocate and first issue a legal notice and then follow it up by further legal process.
The claim for repayment of loan amount should be made within three years of the due or else it will be barred by limitation.
Hence the bank is hurrying to bring the loan recovery process within the time limit to pursue the matter through court for recovering the outstanding loan amount through due process of law
- Next action if any will be taken by the lender filing suit for recovery of claimed outstanding. If the loan is not secured by any collateral security, lender cannot recover anything from you.
- You can claim if any suit is filed fore recovery that the auction is setup as no proper publicity is given to auction sale, neither any notice is given to you.
Ask bank fir detailed statement of account as to the principal amount payable ,interest charged ,the penalty if any levied ,sale proceeds received in auction of car
Act as mentioned herein above
- As per Supreme Court , the bank or finance company having no authority to seize the vehicle without intimation to the defaulter of the loan.
- You can lodge an FIR against the said bank for the said illegal act
- Further, as the said vehicle already seized by the bank then the bank cannot claim the entire loan amount from you.
- If you have proof for the Loan closed , then you can submit the same with the reply of the novice received by you.
- Further, as per limitation Act , the bank cannot claim any amount from you if the 3 years already passed from the date of last payment.
You need to clear the outstanding for claiming your car. R the seizure is illegal and process not followed then you can challenge it in court
