Charging of higher interest by private financer

Querist : Anonymous (Querist) 28 August 2011 This query is : Resolved
I have taken car loan from some private financer of channai and after one year i want to settle the loan . But the company is demanding the interest for the whole period of 30 months which results in Int @ 45%p.a. . Kindly suggest the remedy if any available against the company.

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ajay sethi (Expert) 28 August 2011
did you sign any agreement with the finance company? what is the clause on interest?

Querist : Anonymous (Querist) 28 August 2011
company has not provided the agreement copy nor given me any sanction letter.

ajay sethi (Expert) 28 August 2011
have you executed any document wherein you have agreed to pay the 45%interest. if you have done so you can issue notice to company claling upon them to produce documents on basis of which such interest is being demanded

Querist : Anonymous (Querist) 28 August 2011
no the financer has just told the interest will be charged @ 1.5% p.m.

ajay sethi (Expert) 28 August 2011
1.5%per month amounts to 18% per annum . then how is financer charging you 45%interst rate .

Advocate. Arunagiri (Expert) 28 August 2011
There are numerous companies and banks offering vehicle loans at a reasonable interest.

Do you have any papers for borrowing or settling installments?

Devajyoti Barman (Expert) 28 August 2011
The clause dealing with pre clousre of loan needs to be looked into.
If it is not so harsh upon the customer closing the loan before the stipulated time then you can file appropriate proceeding under the consumer protection act.

Shailesh Kr. Shah (Expert) 28 August 2011
i do agree with mr. Devajyoti barman. Consumer forum will help you. It is to be noted that company is engaged unfair trade practice.

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