Manmeet Kour alleges harassment by Tata Capital over loan foreclosure delays despite timely EMI payments. Choice4Voice.com highlights the case and explains legal remedies available to consumers under RBI rules.
Complaint Summary : Tata Capital Loan Foreclosure Delay – Consumer Complaint by Manmeet Kour
| Details | Information |
|---|---|
| Complainant Name | Manmeet Kour |
| Not disclosed | |
| Company/Brand | Tata Capital |
| Complaint Type | Loan Foreclosure Delay & Harassment |
| Product/Service | Car Loan (₹6,06,715) |
| Issue Description | Despite paying 30 EMIs on time, Tata Capital has delayed issuing foreclosure letter, ignoring repeated emails and calls. Branch staff also refused to assist. |
| Loan Account Number | TCFUC0349000012034357 |
| Outstanding Loan Amount | ₹3,75,014 |
| Interest Rate | 14.52% |
| Date of Complaint | September 2025 |
| Company’s Response | No proper response from customer care despite multiple follow-ups |
Full Write-up
A consumer, Manmeet Kour, has raised a serious concern regarding Tata Capital’s handling of her car loan foreclosure process. Despite maintaining a clean repayment record with all 30 EMIs paid on time, the company has failed to provide her with a foreclosure letter even after continuous follow-ups.
Key Issues Raised:
- On 30th August 2025, the complainant requested a foreclosure letter via email.
- Even after more than 10 days and multiple daily reminders, no document has been provided.
- Customer support is unresponsive – her registered number cannot connect, though her husband’s number (not linked to the loan) connects instantly.
- A personal branch visit (16 km away) yielded no resolution – staff directed her back to email/call support.
- The delay is directly increasing her financial burden due to foreclosure charges and pending interest.
Why This Matters
Consumers expect fairness and timely assistance from financial institutions, especially when they have a perfect repayment record. Deliberate delay in foreclosure processing could amount to unfair trade practices, deficiency in service, and a possible violation of RBI’s Fair Practices Code.
Legal Rights & Possible Legal Action
If Tata Capital fails to resolve the issue, the complainant may consider the following legal actions:
1. Filing a Consumer Court Case
- Under the Consumer Protection Act, 2019, this case qualifies as deficiency in service.
- Reliefs that can be sought:
- Immediate foreclosure letter issuance.
- Compensation for mental harassment and financial loss.
- Penalty for delay and unfair practices.
2. Approaching the RBI Ombudsman
- Since Tata Capital is an RBI-registered NBFC, complaints regarding loan servicing, foreclosure charges, and customer service deficiency can be escalated.
- The Ombudsman can direct the company to waive extra charges and issue the foreclosure letter promptly.
3. Filing Complaint with SEBI (if applicable)
- As Tata Capital is part of Tata Capital Financial Services, investors/consumers can also raise complaints with SEBI for unfair lending practices.
4. Civil Suit for Damages
- If the financial loss is significant, the complainant can approach a civil court to claim damages for loss due to delay.
Choice4Voice.com’s Role
At Choice4Voice.com, our mission is to empower consumers by amplifying their voices.
- This case is now officially featured on our platform.
- We will escalate the matter by reaching out to Tata Capital’s senior management via public channels.
- If Tata Capital fails to respond, Choice4Voice.com will assist the complainant in filing a formal legal case against the company.
Frequently Asked Questions (Q&A)
1. What is a foreclosure letter in loans?
A foreclosure letter is an official document issued by a lender confirming the closure of a loan account after full repayment.
2. How long does Tata Capital take to issue a foreclosure letter?
Ideally, within 7 working days of receiving the foreclosure request and payment.
3. Can a bank delay foreclosure processing?
No, as per RBI’s Fair Practices Code, unnecessary delays are considered deficiency in service.
4. What should I do if my bank delays foreclosure?
You should first escalate to the Nodal Officer of the bank/NBFC, then approach the RBI Ombudsman or Consumer Court.
5. Is foreclosure allowed in car loans?
Yes, all NBFCs and banks allow foreclosure after a minimum lock-in period, though charges may apply.
6. Can I demand relaxation in foreclosure charges?
Yes, especially if you have a clean repayment record or if charges are higher than RBI’s permitted range.
7. What are the RBI guidelines for loan foreclosure?
RBI mandates transparent disclosure of foreclosure charges and timely issuance of closure documents.
8. Can Tata Capital block my customer support access?
No, blocking or denying access to customer care violates consumer rights.
9. Can foreclosure charges be challenged legally?
Yes, if they are unreasonable or not disclosed in advance, they can be challenged under Consumer Protection Act.
10. How to file a complaint against Tata Capital?
- Email Tata Capital customer support.
- Escalate to Nodal Officer.
- File complaint with RBI Ombudsman.
- Approach Choice4Voice.com for further legal support.
11. What is deficiency in service under consumer law?
When a service provider fails to provide fair, timely, and adequate service as promised, it is considered deficiency.
12. Can I get compensation for harassment caused by Tata Capital?
Yes, consumer courts can award compensation for mental harassment and financial losses.
13. How much time does consumer court take for such cases?
Typically, 6 to 18 months, depending on complexity.
14. Is legal notice necessary before filing a consumer case?
Yes, sending a legal notice strengthens your case and gives the company a chance to resolve.
15. Can Choice4Voice.com file a case on my behalf?
Choice4Voice.com can assist complainants with drafting, legal advice, and connecting them to consumer lawyers.
16. Are foreclosure delays common with Tata Capital?
Several consumers have reported delays and poor customer support during foreclosure.
17. Can RBI penalize Tata Capital?
Yes, if repeated violations are proven, RBI can impose monetary penalties.
18. What documents are needed for filing a complaint?
- Loan agreement copy
- Foreclosure request email proof
- EMI payment record
- Communication logs with Tata Capital
19. Is it possible to get a refund of extra foreclosure charges?
Yes, if charges are illegal or undisclosed, courts can order a refund.
20. How can I ensure my foreclosure is smooth in the future?
- Request foreclosure in writing.
- Keep all communication in email format.
- Escalate early if delays occur.
