#financier liability

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.

West Bengal State Consumer Commission rules that financiers cannot be held liable for a dealer’s failure to register a vehicle unless collusion or a contractual obligation is proven. The ruling clarifies that deficiency in service claims against financiers require evidence of active involvement or breach of duty, protecting lenders from vicarious liability in consumer disputes.