#Financial Services

The NCDRC has ruled that financial institutions cannot repossess a vehicle under SARFAESI Act without serving prior notice to the borrower, even in case of default. This reinforces due process as a non-negotiable element of consumer protection in secured lending, holding banks accountable for procedural violations with compensation of ₹2.5 lakh plus 12% interest.

Borrowers availing housing loans for personal use are consumers under the Consumer Protection Act, and lenders cannot unilaterally extend loan tenures without consent - doing so amounts to deficiency in service and unfair trade practice. This ruling empowers home loan borrowers to challenge arbitrary loan modifications and holds financial institutions accountable for transparent contractual conduct.