Vehicle seized 2 emi bounce

Dear Client,
Legally, a lender cannot attach or seize movable or immovable property in the absence of a Court's order. Once the repayment of the loan stops or bounces for three consecutive occasions, the Bank initiates a routine course of legal action for recovery of the loan from the borrower, marking the loan as a bad loan/NPA and offering the borrower for one-time settlement of the outstanding loan before approaching the Debt Recovery Tribunal. As per the RBI Guidelines, Banks/NBFC/FI are advised to ensure that the contracts with the recovery agents do not induce the adoption of uncivilized, unlawful, and questionable behaviour or recovery process. Banks/NBFCs are strictly advised to adhere to the guidelines/code mentioned above during the loan recovery process. In the given situation, filing a complaint against the recovery agents of the Bank at the local Police Station, a copy of the said complaint should be sent to the concerned Bank. Further, a complaint against the loan recovery agents appointed by the Bank can be made to the regulatory authority RBI, online at https://cms.rbi.org.in. The Hon'ble Patna High Court in the case of Dhananjay Seth v. Union of India, 2023 SCC OnLine Pat 1393, decided on 19-5-2023 directed the Superintendent of Police of all the districts in the State of Bihar, to ensure that within their jurisdiction no recovery agent of the Bank and Financial Institution might take the law into their hands without an order of the competent court of law. Further, a quick counselling session with a certified credit counsellor can help you discover your options and choose the right path to resolve or settle the matter.