New Delhi, Mar 20: Now banks will have pay compensation if they forcibly seize a financed car and HDFC Bank will be the first one to pay. The Delhi Consumer Commission has directed the Bank to pay Rs 35,000 as compensation to an export house for forcibly seizing a financed car on its failure to pay two installments.
"Whenever any bank resorts to such a method, it is liable to compensate the consumer as to the mental agony, harassment and humiliation suffered by him and return the post-dated cheques," the Commission headed by Justice J D Kapoor said.
The Commission cancelled the plea of the bank and said that it can only charge the unpaid installments and refund the margin money contributed by the capital-based Reliable Exports and Expositions (REE).
The REE purchased the Maruti Esteem in January 2006 after the bank sanctioned the loan of Rs 4.56 lakh. It, however, defaulted the payment of two installments following which the bank forcibly seized the vehicle in July 2006.