Black Horse Hire Purchase Agreement - Please Help

530man

In November 2007, i purchased a vehicle from a motor dealer and the finance was arranged through Black Horse Finance. The car was always kept clean and insured. All the payments were going out on time. In October 2008, a friend of mine had borrowed the car and for some reason was stopped by the police and the car was compounded. I went to collect the vehicle from the compound and was told that Black Horse had refused to release the car to me. I contacted Black Horse and was told the their Fraud Investigator that the vehicle had been taken as there was no insurance on it and I had leased it out to a car hire company. All this was untrue as the car was comprehensively insured and I have never leased it to anybody. Black Horse failed to give me a clear reason and the car was sold. I purchased the car for £14,500 and the total finance package came to £19,000. Black Horse sold the car for £5000. I have made a complaint and they have sent me a statement of my account showing that I still owe £10,000. They claim that the reason my agreement was terminated was because I had broken the Terms & Conditions of the contract. It does say in the contract that if the vehicle is seized by any authority, Black Horse MAY terminate the agreement. The police have never confirmed to me why the car was taken and it was them who had informed Black Horse. Furhter to this, Black Horse are asking me to pay £500 for reposession fees. These fees were for them instructing a collection agent to recover the vehicle. I went to collect the car from the compound the day after it was taken but Black Horse refused to release it hence the car stayed in incurring more daily charges. My complaint is still ongoing but I don't think they are listaning to me. Are they allowed to do this ?? I still maintained my monthly payments after the car was taken but I am now expected to pay £10,000 for a car i do not have. PLEASE PLEASE PLEASE SOMEBODY HELP ME.

standupguy

From what you say there may be some grey areas here.

If your payments were up to date and a default notice had not been issued then to repossess the car without giving you the opportunity to take the car back into your possession could be viewed as unfair.

You probably can challenge this action and would be able to complain to the Financial Ombudsman service.

Write back to Black Horse and ask them for their "final decision" regarding your complaint and say that you intend to "take this matter to the Financial Ombudsman service if the matter is not resolved satisfactorily and within the time frames laid down under the FSA complaint handling guidelines"

asandwhen

I think you will see in your documents a clause that states the vehicle **MUST** be fully comp insured. Now I know you are saying that this was the case but as soon as you let your friend drive the vehicle it was no longer insured as this only covers you.

I think Black horse were within there rights to end the contract and you may have trouble getting anything back. It is still worth going through the complaints proceedure though just incase.

530man

asandwhen wrote: »

I think you will see in your documents a clause that states the vehicle **MUST** be fully comp insured. Now I know you are saying that this was the case but as soon as you let your friend drive the vehicle it was no longer insured as this only covers you.

I think Black horse were within there rights to end the contract and you may have trouble getting anything back. It is still worth going through the complaints proceedure though just incase.

The vehicle was fully comp insured as my friend had taken out his own policy on the car. I think he used one of these 'Day Insurance' companies and it was definitely fully comp.

petermb_2

I caanot say if the lender was correct in what they did as I have not seen the terms and conditions but there are a few issues present that may assist your case and mitigate the amounts allegedly owed now.

Did you include PPI in the loan?

asandwhen

530man wrote: »

The vehicle was fully comp insured as my friend had taken out his own policy on the car. I think he used one of these 'Day Insurance' companies and it was definitely fully comp.

If that is the case why did the police recover it? (I assume it was section 165 no insurance)

If they were wrong to recover it then you may have a complaint against the police.

mluton

Lending the car to someone is leasing the car to someone else, even if they didnt pay for the privilage and regardless of insurance. Looks like they have stung you on that one.

I know hire purchase have loads of clauses in them and they have the final say till final payment.

I feel for you as £10,000 is a massive pot of money to pay for nowt.

Have you seeked legal advice ?

530man

mluton wrote: »

Lending the car to someone is leasing the car to someone else, even if they didnt pay for the privilage and regardless of insurance. Looks like they have stung you on that one.

I know hire purchase have loads of clauses in them and they have the final say till final payment.

I feel for you as £10,000 is a massive pot of money to pay for nowt.

Have you seeked legal advice ?

I'm struggling to find a solicitor locally who speacialises in Hire Purchase Agreements. I live in the North West. I have sent off an SAR to Black Horse and also a letter to the Police questioning why the car was compounded in the first place. I am waiting for a reply from both.

530man

petermb wrote: »

I caanot say if the lender was correct in what they did as I have not seen the terms and conditions but there are a few issues present that may assist your case and mitigate the amounts allegedly owed now.

Did you include PPI in the loan?

No, but the salesman did make me take out GAP insurance as he said i would stand a better chance of getting the finance

petermb_2

530man wrote: »

No, but the salesman did make me take out GAP insurance as he said i would stand a better chance of getting the finance

In that case there are issues that you can raise.
I will pm you and give you my email address.
If you can send me a copy of your agreement I will place it in front of a lawyer who will run it on CFA, with no cost to you win or lose. He can assess if you have a claim.
I assisted someone in getting their car back from repossession in the last couple of months. In the end the judge who heard the case advised him to seek compensation plus he keeps the car.

nelly12

Forget about the GAP issue because that is a blatant lie by a salesman nothing to do with BH.

The issue is and remains was your friend insured fully comprehensively when he was stopped by the police? If he was then you need to prove this.

If he wasn't then by the letter of the law BH will be viewed as being correct in their action. Harsh by them in their action but true.

Have BH given you a reason why they only achieved £5000 in disposing of your car after costs? Auction costs are not that high. It seems a long way from our outstanding balance.

Be as truthful as you can. I work in the Motor Finance industry (so in theory know what I'm on about).