Sk Hussain files a complaint against Tata Capital alleging unlawful bike repossession despite regular EMI payments. Read full details, complaint summary, legal context, and consumer rights explained by Choice4Voice.com
Complaint Summary : Tata Capital Loan Complaint – Bike Repossession Dispute
| Details | Information |
|---|---|
| Complainant Name | Sk Hussain |
| Not disclosed | |
| Company/Brand | Tata Capital |
| Complaint Type | Loan Dispute / Unfair Recovery Practices |
| Product/Service | Two-Wheeler Loan |
| Issue Description | Bike repossessed without prior notice despite regular EMIs; unreasonable additional charges imposed |
| Date of Incident | September 2025 |
| Company’s Response | No official response yet |
| Complaint Source | Shared via LinkedIn post |
| Additional Notes | Complainant alleges violation of RBI guidelines on loan recovery practices |
Full Complaint Write-Up
A serious allegation has been raised against Tata Capital by Sk Hussain, who works as a Customer Care Executive at Conneqt Business Solutions Limited.
According to his LinkedIn post, despite paying EMIs regularly, he missed a single installment due to unavoidable personal reasons. However, instead of following due process, Tata Capital allegedly forcibly repossessed his bike without prior notice or proper communication.
The complainant further claims that he has been asked to pay unreasonable and arbitrary charges in addition to pending dues, which he considers illegal and unethical.
Sk Hussain stresses that such practices go against the RBI guidelines on fair recovery practices. For him, the bike is not just a vehicle, but an essential part of his livelihood. The sudden repossession has caused significant hardship.
He has appealed for urgent consumer awareness and demanded that Tata Capital follow ethical and legal processes in loan recovery.
Choice4Voice.com is publishing this case to ensure visibility and urge the company to resolve the matter responsibly.
Legal Context: RBI Guidelines on Loan Recovery
As per the Reserve Bank of India (RBI) guidelines, banks and NBFCs must follow strict norms for loan recovery:
- No harassment or coercion is permitted during repossession.
- Prior notice and communication must be given to the borrower before any action.
- Repossession terms should be clearly mentioned in the loan agreement.
- Excessive or arbitrary charges cannot be imposed without proper justification.
If these norms are violated, borrowers have the right to file complaints with:
- Banking Ombudsman / NBFC Ombudsman
- RBI grievance redressal portal (CMS)
- District Consumer Disputes Redressal Commission
Consumer Rights in Loan Disputes
- Right to Fair Treatment – Borrowers cannot be harassed or forced into unfair settlements.
- Right to Prior Notice – Lenders must inform the borrower before repossession.
- Right to File Complaint – Consumers can approach consumer courts, ombudsman, or regulatory bodies.
- Right to Transparency – All charges and dues must be clearly explained in writing.
Q&A Section
Q1: Can Tata Capital legally repossess a bike without notice?
No. RBI mandates prior notice and communication before repossession.
Q2: What can a borrower do if a financial institution uses unfair recovery practices?
The borrower can file a complaint with the RBI Ombudsman, consumer court, or approach civil courts for relief.
Q3: Are additional arbitrary charges enforceable?
No. Unless clearly mentioned in the loan agreement, arbitrary charges are not legally enforceable.
Q4: What documents should a borrower check before repossession?
The loan agreement, repayment schedule, and repossession clauses.
Q5: Where can borrowers escalate issues with NBFCs like Tata Capital?
They can use the RBI Complaint Management System (CMS) or approach the local consumer court.
Q6: What immediate action can Sk Hussain take?
He can send a legal notice to Tata Capital, file a complaint with the Ombudsman, and approach the consumer forum.
Q7: Are such practices common in India?
Unfortunately, cases of aggressive recovery tactics are reported frequently, especially in the NBFC sector.
Q8: Can the borrower claim compensation for harassment?
Yes. Consumer forums can award compensation for mental agony and financial loss.
Q9: What is the role of Choice4Voice.com in this case?
Choice4Voice.com acts as a neutral consumer advocacy platform, publishing verified complaints to pressurize companies into resolution.
Q10: How can Tata Capital resolve this issue?
By reinstating fair communication, withdrawing arbitrary charges, and offering a settlement plan in compliance with RBI norms.
📌 Note from Choice4Voice.com
We strongly urge Tata Capital to investigate this matter urgently and provide a fair resolution. Customers deserve ethical treatment and transparent communication.
