[Zappo]

It sounds very strange to me. I dont think bank wait for any registration etc to happen to do the disbursement. Dealer will anyhow need to see the money before they agree to register the vehicle in your name. Typically, post loan approval you request for a disbursal on the day the car is ready for delivery or may be the day before. So bottomline is that the dealer always gets the money before delivery of the vehicle. Only thing that happens is that the dealer does a temp registration or perm registration immediately and puts the bank in as the hypothecating agency and sends the copy of the documents to the bank.

In your case, it really sounds curious. You can check with the bank on what are your remedies since the dealer is sitting on the disbursement without any delivery. Remember, without a car delivery happening the bank is literally now sitting on a potential NPA as they may never have the collateral (the car) to recover the loan from. Moreover, if that happens this may well be treated as a scam and a few people from the bank will get sucked in. So they have a stake in that. Best way out is to speak to the bank manager. If he tries to wriggle out by pushing the onus on you tell him upfront that you will file a police case of forgery and stop paying the EMIs.

P.S.: Remember one thing. The bank has the control in this case as they disbursed directly to the dealer and then have most probably not pressurised the dealer although they did not get the hypothecation documents from the dealer (which carries the engine/chassis number amongst other things). And in case they really received something from the dealer the case will only get even messier!

[sumeethaldankar]

Thanks Zappo.

Since the first EMI has been paid is it still possible to have the loan cancelled ?

[latentpotential]

Originally Posted by sumeethaldankar

Hi guys,

A friend of mine had booked a Petrol Hyundai I20 in Aug 2014 from Sharayu Hyundai Navi Mumbai and was promised delivery by 22 sep.A booking amount of Rs 10K was given and loan was taken from HDFC.

Now the bank somehow failed to ask my friend before disbursing the loan amount and now the dealer has received the full amount for the car but not has yet delivered the said vehicle and keeps giving excuses like in 10 more days etc .

On top of all this my the bank has started the EMI and my friend had a cut in her paycheck (auto debit) for the monthly amount without even receiving the car.I have read ( on a similar thread on team-bhp) that the bank is suppose to disburse the loan only after receiving the vehicle registration details etc please correct me if i am wrong.

Kindly suggest what sort of action my friend should take and against whom, the bank or the dealer ?

Thanks

Reach out to the Bank manager and ask on what basis or documents the loan has been disbursed in full (agaist what VIN/ Chassis Number, what hypothecation proof). Since they have no valid data of this sort, inform them to reverse the EMI right away. If you get stonewalled, simply say that you will be reaching out to the Headoffice with your complaint right away. That should sort it out.

There will be a grievances section on the website of the Bank as well, it will be good to put in a written complaint (email with scanned documents, data) as well as a written complaint by registered post if you wish to.

In case the Bank does not provide a satisfactory reply after escalation, you can always approach the RBI Ombudsman and reach a logical conclusion.

[::CMS::]

I think you might not have signed any documents yet as you are not aware of the loan disbursal from the bank. If so, ask your bank to stop the emi payment and the bank loan employee will feel the heat.

[ghodlur]

Originally Posted by sumeethaldankar

Now the bank somehow failed to ask my friend before disbursing the loan amount

Thats a grave mistake. Normally the final disbursement cheque or DD in the name of dealer is handed over the loan applicant who can hand over the same upon delivery of the car.

I feel the bank and dealer are hand in glove and are doing something shady here. A complaint against the branch directly to the HQ of the bank will be the first step and you can mention the EMI deducted in the complaint. Secondly writing to Hyundai regarding the dealer's reluctance to deliver the car will the next step.

Surprised to know that the bank doesnt have any collateral for the loan disbursement.

[dass]

Two things to do.

1. Tell the bank that you are canceling the loan as the car is not yet delivered, and ask them to take the refund from the dealer as the dealer is responsible for the delay. This will get their tails on fire and get them to work faster in getting you the delivery.
2. tell your dealer to return the EMI amount to you, else file a complaint against them in the consumer court for the delay.
3. Cancel both the loan and the booking and make a fresh start with a new dealer.

All of the above may not be practically possible, but enough to get the ball rolling and get towards a faster resolution. Either ways, start with the bank first.

[StepUP!]

This looks weird and fishy to me. It might be possible that dealer has already provided VIN number, engine number details to the bank which might be an old or a demo car which no one wants to buy.
Also if your friend refuses to pay EMIs, it can affect his CIBIL score which would create problems in future for availing loans.

[sumeethaldankar]

Thank you all for your replies.The dealer has now again promised delivery on nov 10 to my friend.Does anyone has the email ids to Hyundai higher ups?

[Captain Slow]

Originally Posted by sumeethaldankar

Thank you all for your replies.The dealer has now again promised delivery on nov 10 to my friend.Does anyone has the email ids to Hyundai higher ups?

Hyundai will not help you in this matter.
You need to clear this with the bank - The bank manager and the dealer. Try and get in touch with some senior MD or chief of the dealer.

[sumeethaldankar]

Originally Posted by Captain Slow

Hyundai will not help you in this matter.
You need to clear this with the bank - The bank manager and the dealer. Try and get in touch with some senior MD or chief of the dealer.

Well the dealer has received all the money for the car and has not yet delivered , yes the bank is at fault too but shoudn't the dealer too deliver what he promised.

The loan executive who dealed with my friend is some dude who sits in the showroom itself.I think both the dealer and this gentleman are hand in glove with this.

[joybhowmik]

Originally Posted by sumeethaldankar

I think both the dealer and this gentleman are hand in glove with this.

You need to take legal action.
It's clearly a case of stonewalling a paying customer. Make the manufacturer and the dealer the defendants.
And once settled, ask them to reimburse your legal fees.

[Ajitsingh208]

When I took a Car Loan I was given an option to Pay 1 EMI in advance which I refused. And since I wasn't sure of the dealer from where i would take delivery. I took the Bankers Check on the day of the car delivery from Kotak and handed it to the TATA Showroom myself.

You should take your bank to task for releasing the loan without consulting you. Also since the dealer has no car, so no car has been invoiced to you, hence you can cancel the booking I think, the dealer will have to refund the full amount then or send it back to bank.

[Wanderers]

Hi

This almost happened to me during my last year car purchased.

Dealer informed me that the loan has been approved. I asked him to confirm delivery/availability before I go to bank for formalities. He re-confirmed that delivery would be immediate as they have stock.
I completed the bank formalities but never knew that SBI would RTGS the money while I was still signing some PDCs. (very fast- 20 mins)

Mistake: I had not seen the car nor had asked for the VIN.

When I realized my mistake, I rushed to dealer.

While dealer never said that they don't have the car but they started negotiating on accessories which are suppose to be fitted already and for car without accessories, I may have to wait.
I did not budge. I insisted for interest payment on loan/ return the money to bank.
(One thing was sure that they were afraid of Bank.)

Finally I made them open all the accessories but take the cladding at discount pretending I did not needed them even though I wanted them I first place.

Please talk to Bank. Bank can force the dealer to do anything.

[Lalvaz]

Looks like the loan executive and the dealer are hand in glove at the expense of the customer.

Please do escalate the matter to HDFC bank immediately. This is a clear violation of the process and your friend should not be charged any EMI's till the car is invoiced and delivered.

[ckranjan]

Bank Can't Disburse loan to the dealer without two very important documents.

1. Copy of Insurance or declaration from dealer stating that delivery will be delayed for X amount of time.
2. Margin money receipt.

Bank would have disbursed the loan after getting the above 2 documents.

There is a high chance something fishy going on. Please be cautious and take strict action against the dealer.

Also lodge a complaint with the bank for disbursing the loan without consent.