Car loan from mfsl
Kvijay12345
(Querist) 06 July 2013
This query is : Resolved
My friend had taken a car loan from Mahindra Finance(MFSL) in 2008.The tenure was fixed for 42 months with the EMI of Rs.15,070 p.m. He was not issued any loan sanction letter or any loan relevent document at the time of loan santion.After several requests and after 30 months from the date of loan sanction, MFSL provided him the copy of loan agreement in which the borrower found many discrepancies such as the tenure for loan was changed to 60 months rather than 42 months as committed, rate of interest applied on loan is not mentioned any where in the loan agreement, although no guarantor was provided by him, the signatures of an unknown person were taken on the agreement as a guarantor for the loan,moreover the power of attorney in the loan agreement is not notarised and there are many blank spaces still left in the loan agreement etc.So, after receiving these docs he immediately informed MFSL about these discrepancies and as no satisfactory reply came from MFSL he discontinued the EMI Repayment for past two years but nobody from MFSL approached him. Now the vehicle is in possession with the borrower.In such situation can the borrower use the vehicle?Does MFSL have the legal rights to repossess the vehicle on account of non payment of dues when the loan agreement has become invalid due to the non notarised power of attorney and with all the above mentioned discrepancies? despite of this if MFSL repossesses the vehicle forcibly, what legal remedy is available with the borrower? in such condition can the borrower use the vehicle? The borrower has all the acknowledgements & proofs of the several correspondences he made with the MFSL.
Devajyoti Barman
(Expert) 06 July 2013
This is great unfair trade practice.
File a case in the consumer forum immediately and ask for injunction in the said case against forceful possession of the car.
malipeddi jaggarao
(Expert) 07 July 2013
Calculate the liability at the interest rate agreed upon and number of EMI and repayment. Once the liability is paid back, send a registered letter stated that in spite of these discrepancies the entire loan as agreed upon is paid. Hence the bank should release the hypothecation clause entere din the Registration book.
Regarding use of vehicle, though it is hypothecated to a financial institution, the ownership and possession is with the borrower unless the possession is taken by the institutioin. Inthis case, possession is not taken by the institution. The owner can as well use the vehicle.
Regarding, what if the possession is forcefully taken? Please read my first para and follow the same. You can file a complaint with the police that the possession is wrongfully taken though the debt is repaid. Simultaneously file a case in consumer forum as suggested by Mr.Barman.
But at present, forget the issue if the loan is repaid as agreed upon and use the vehicle peacefully until the problem is posed by the financial institution.
Guest
(Expert) 08 July 2013
Ehat Jaggarao has adviced is absolutely right and proper advice. Unless your vehicle is repossessed by the company for default you cannot do anything except the fact of approaching Consumer Forum. As it is you have pointed out all the discrepancies to the company and despite the same they have not acted upon the same to rectify or acted on diligently. You can always take benefit of the same in the event the vehicle is repossessed. Here I would as well say that it would be better to continue the payment of the installments instead of stopping them and inviting the problem of repossession of vehicle.
