The National Consumer Disputes Redressal in its ruling said the finance company can sell off the vehicles purchased on hire-purchase schemes with out taking consent from loan defaulters, to recover the price amount.
The commission gave the ruling in view of a petition filed by a Tamil Nadu resident who had alleged that her vehicle’s financing firm had sold off her vehicle without issuing any notice.
The Commission, comprising Justices R C Jain and Anupam Dasgupta, said, "The complainant has not been able to demonstrate to us what prejudice was caused to her by the finance company on account of the latter selling the vehicle without issuing any notice to her, when she had failed to remit the due installments of the loan for several months."
Complainant Parameswari had filed the case before Commission, challenging Tamil Nadu State Consumer Commission order of dismissal of her complaint relating to deficiency of service by the Tata Finance Limited in 2005.
The Commission stated that Chennai-based Tata Finance Limited took this step in accordance to the terms of the Hire Purchase Agreement.
It added the finance company had the right to sell the vehicle without taking complainants consent as the vehicle was still in the firm’s name and was done to recover the loan amount when Parameswari failed to pay the installments.
The finance company sold the vehicle to a third party as Parameswari had purchased it under the agreement on loan and failed to remit the installments of the loan amount.
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