Namakkal DCDRC directs finance company to pay compensation

Published - July 09, 2024 08:50 pm IST - Salem

The Namakkal District Consumer Disputes Redressal Commission (DCDRC) has directed a private finance company to pay ₹16,922 in compensation.

N. Subramani, a resident of Namakkal, took a loan of ₹71,393 from a private finance company in November 2022 to buy a moped. He was supposed to pay ₹3,820 as monthly instalments for 24 months. However, his cheque for the first two months’ instalments bounced, and he had to pay the instalments with a fine. After that, he allegedly did not pay the instalments for four months. In May 2023, the finance company seized his moped without giving any prior notice and sold it. Despite this, the company demanded that he repay the entire loan amount.

Following this, he filed a case with the Namakkal DCDRC in December last year. Having inquired about the case, Namakkal DCDRC Commissioner V. Ramaraj directed the private company to pay ₹16,922 in compensation to the petitioner within four weeks, including ₹10,254 for selling the moped at a low price, ₹4,668 for service deficiency and ₹2,000 for case expenses.

In the order, Mr. Ramaraj said the company proved the petitioner did not pay the instalment properly, but at the same time, the company also failed to follow the rules while seizing the moped and sold it for a low price. In the compensation amount, the company shall deduct the amount to be paid by the petitioner and issue a no-due certificate, the commissioner added in the order.

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