Car loan agreement - bank fraud
Querist :
Anonymous
(Querist) 27 April 2023
This query is : Resolved
I have availed a car loan from a bank and have a legal agreement in place wherein the dealer shall deliver the vehicle. Since there was a waiting period for the car, the bank has credited the dealer prior to the delivery during the waiting period. Subsequently, the car company cancelled the dealership of the dealer and now the dealer has shut down his showroom. The bank is now following up on the EMIs wherein i did not receive the delivery of the vehicle. It may also be noted that the dealer was acting as a channel partner with the bank and as per the agreement between the bank and the dealer, in case of non delivery of vehicle on disbursement, the bank has the right to receive the amount disbursed or adjust the same from any future payments to be made by the bank to the dealer (channel partner).
When the bank should have collected the money from the dealer , can it force me to collect the loan amount when the same was disbursed directly into the account of the dealer (channel partner of the bank). ?
Sudhir Kumar, Advocate
(Expert) 27 April 2023
Bank has right to collect money frm you and you alone and right now they should start recovery.
Please be clear :-
1. Whether the bank was obliged to remit money to the dealer immediately or on your instruction.
2. Whether the dealer has remitted money to the company (if known to you) or not.
3. Whether the dealer has been approached for refund.
4. Whether the vehicle has been approached for delivery of the vehicle.
Prima facie you have a good case to move to consumer court
T. Kalaiselvan, Advocate
(Expert) 28 April 2023
You can file a money recovery suit against the dealer to recover the amount paid by bank for purchasing a car on your name
You can bring the dealer's properties for attachment before judgment as a security amount towards the amount now you are fighting for.
Sudhir Kumar, Advocate
(Expert) 29 April 2023
moving to consumer court appears to be better option as per given facts.
P. Venu
(Expert) 01 May 2023
"as per the agreement between the bank and the dealer, in case of non delivery of vehicle on disbursement, the bank has the right to receive the amount disbursed or adjust the same from any future payments to be made by the bank to the dealer"
It is the obligation of the Bank to proceed in terms of the above condition.
