Consent of loan defaulters is not necessary for financing companies before selling off vehicles purchased on hire-purchase schemes to recover the price amount, the National Consumer Disputes Redressal has held.
The commission made the ruling while hearing a petition from a Tamil Nadu resident who complained that her vehicle's financing firm sold it off without issuing any notice.
"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 instalments of the loan for several months," the Commission, comprising Justices R C Jain and Anupam Dasgupta, said.
Complainant Parameswari, approached the 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 said Chennai-based Tata Finance Limited had acted in accordance with the terms of the Hire Purchase Agreement.
It said since the vehicle was in the firm's name, the finance company has the right to sell it without her consent to recover the loan amount when Parameswari failed to pay the instalments.
The vehicle, purchased under the agreement on loan from the finance company, was sold to a third party after Parameswari failed to settle the loan amount.
