Finance

newmum1

HI there all just been on the phone to a friend and have a query, basically, her husband took a car out on finance but then got sent to prison she put the car in a mates garage and made no payments yesterday she took the car out and contacted the garage where the car was brought from now they have told her that the finance company has gone bust. now who if anybody is she supposed to make payments to. the last payment was made in feb 05. Also the car was taken out at a different address to where she lives or the adrees at which it was taken out at, she is planning on putting the car in her name. no baliffs or anybody has been around, what should she do any ideas?????

file_wizzard

First of all she should find out if the car was brought on Hire Purchase or financed via a personal loan.

This will effect the rights which the HP / Finance company has, either way the original purchaser would not be able to legally transfer the vehicle to her with outstanding finance on it as this would have been a condition of the original loan / HP agreement.

She should also attempt to work out how much is outstanding on the vehicle at the moment as this will effect her rights as far as the potential repossession of the vehicle go’s,

If the original creditor has “gone bust” it is more than likely that the outstanding assets / business of this company would have been transferred to a new owner and they will be starting to make contact with all of the customers imminently.

I trust she is fully intending on contacting the new finance company with a view to resolving what is owed against the original agreement

newmum1

from what she has said i gather that it was hire purchase she does not know how much is outstanding on the car, but the thing is that she believes that she has got a 'free car' but im sure that if no payments were and are not been made the car will be reported as stolen wont it????

file_wizzard

if it is HP it wont necessarily be reported as stolen, but they will be making efforts to trace the original debtor / vehicle.

Also the car is still the property of the HP company, so she either needs to make an arrangement to settle the outstanding balance, or surrender the vehicle to them.

The original agreement holder will also be liable for any shortfall in the total value of the agreement once the car has been auctioned / resold.

It would be virtually imposable to re-insure / re-tax the vehicle without it being traceable.

Best bet is to contact any numbers she has for the original lease company, as undoubtedly these numbers will now lead to the present owners of the vehicle

skintchick

So, she deliberately hides the car and stops paying for it while her criminal husband is banged up for goodness' knows what, at the taxpayers' expense, and then thinks she has a 'free car'?!?!?!? :mad: :mad: :mad:

People like that make me SICK.

elona

If she drives the car without insurance and gets caught then she will have a lot more to worry about than if the car is "free!"

Morally and probably legally it is stolen.

BWZN93

Secondly - HP is HIRE purchase, (you dont own the car until all payments have been made) the car is an asset of the now gone bust company. You can bet that someone is after that car, and it certainly isnt free. At the moment, it is probably owned by the creditors of the bust company, and legal action will be taken to recover it. It never can be legal - she cant just take over the car as hers.

Jo xx

newmum1

hey all, thanks for all the advice have passed on the advice although it is falling on deaf ears but hey all im doing is trying to help.