Availing loan for services not delivered

Dear Client, as per your query, Under the existing circumstances, it is very advisable to send a formal legal notice to the mediator agency claiming a full refund of the disbursed loan amount or the immediate provision of services, as it constitutes a "deficiency in service" and "unfair trade practice" accordingly as per Section 2(11) of the Consumer Protection Act, 2019. Along with this,also it is also advisable to send a written representation to the lending agency and its Grievance Redressal Officer, claiming that the funds were disbursed to a third party, which may prove helpful to negotiate a loan restructuring or a temporary extension of the moratorium period to save your CIBIL score from being adversely affected due to non-payment. In case the agency does not comply with the notice, a complaint can be filed before the District Consumer Disputes Redressal Commission claiming a refund of the money, damages for mental harassment, and interest. Additionally, if the intention was to defraud, a police complaint (FIR) can also be filed for criminal breach of trust and cheating. I hope this answer is helpful. In case of further queries, please do not hesitate to contact us.

Thank You.