Black Horse Hire Purchase Agreement - Please Help

petermb_2

nelly12 wrote: »

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).

The gap insurance has everything to do with BH. BH would have sold the insurance, the dealer merely advised the OP to have it. BH may well have taken a vehicle they had no right to for their loan arrrangement may be deemed to be voidable.

I have assisted a client to that effect in the courts and the lender was ordered to return the vehicle by the judge. Admittedly that case was a little more complicated than this story but the background is just the same.

It is about time you car dealers and lenders started to wake up to the law. Oh some of them are ie Welcome no longer providing loans throught dealerships.

Oh I wonder why?????? must be the credit crunch......

petermb_2

530man wrote: »

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.

So back to the OP.
No offers of help I see. Just words.

nelly12

petermb wrote: »

So back to the OP.
No offers of help I see. Just words.

Sorry for not making myself clear petermb. About 80% of GAP insurance sales are provided through 3rd party insurers not the finance houses. More profit for the dealers.

Most garages and finance houses do behave wholly in a lawful and professional manner, the minority do get it wrong. Everybody does however make mistakes at one time or another (including you and me!)

I still think the answer lies in the comprehensive insurance, can the OP obtain proof that this was in place? If it was in place then the terms and conditions of the finance agreement are usually ambiguous enough to be on the side of 530man in this scenario, but we need to know that answer.

I thought words were a help as we are trying to find answers to questions which may assist the situation.

petermb_2

nelly12 wrote: »

Sorry for not making myself clear petermb. About 80% of GAP insurance sales are provided through 3rd party insurers not the finance houses. More profit for the dealers.

Most garages and finance houses do behave wholly in a lawful and professional manner, the minority do get it wrong. Everybody does however make mistakes at one time or another (including you and me!)

I still think the answer lies in the comprehensive insurance, can the OP obtain proof that this was in place? If it was in place then the terms and conditions of the finance agreement are usually ambiguous enough to be on the side of 530man in this scenario, but we need to know that answer.

I thought words were a help as we are trying to find answers to questions which may assist the situation.

My point here is that the dealer does not arrange the Gap insurance. The lender will arrange it through a third party insunrace company. The dealer then gets an enhanced commission for arrangening the finance. That is how it works isnt it?

nelly12

petermb wrote: »

My point here is that the dealer does not arrange the Gap insurance. The lender will arrange it through a third party insunrace company. The dealer then gets an enhanced commission for arrangening the finance. That is how it works isnt it?

No in most cases it isn't. Most GAP sold is Return to Invoice or Vehicle Replacement and most of the finance houses don't pay a dealer enough commission so the dealer will arrange it 3rd party. Not always the case but as I stated most of the time.

It may be that in this case BH did provide the GAP but it certainly wouldn't affect the underwriting of the deal and dealer said what he said to make more money.

petermb_2

nelly12 wrote: »

No in most cases it isn't. Most GAP sold is Return to Invoice or Vehicle Replacement and most of the finance houses don't pay a dealer enough commission so the dealer will arrange it 3rd party. Not always the case but as I stated most of the time.

It may be that in this case BH did provide the GAP but it certainly wouldn't affect the underwriting of the deal and dealer said what he said to make more money.

Oh i have no doubt the dealer did what he did to make more money and you may be right that dealers sometimes arrange the insurance but there are legal issues here regarding the providing of the insurance that could affect the entire validity of the loan itself.

nelly12

What do you view as being the legal issues?

530man

asandwhen wrote: »

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.

I wrote to the Police asking for all the information as to why the vehicle was initially stopped and then seized. The investigating office has responded by telling me that the vehicle was initiall stopped 'Under the powers of The Road Traffic Act 1988' and then seized as the Police Officer was not satisfied that the driver was insured to drive the vehicle. The officer claims that he spoke to me at the time, on my mobile, and I allegedly confirmed to him that the driver was my cousin and i had 'hired' the vehicle to him !! That is a complete lie. I have never spoken to the Police Officer. I know the car was insured, as the driver was issued a HORT1 (producer) and he produced proof of insurance within 7 days. I have written back to the police asking them to double check which number their officer called as i can guarantee it wasn't mine and also what proof they have got that the vehicle was being used for hire seeing as they told Black Horse this which is why Black Horse refused to let the vehicle be released to me.

I am now awaiting the outcome

goodstarttonewyear

has your "friend" not got the insurance details to prove he was insured ? , also if they did a roadside check on the vehicle they would know if it was insure by yourself anyway

if it came up as not being insure that is why they would seize it ,

i think your friend has some explaining to do

kinglewis121

sorry to but in a bit , was your friend male or female? after reading i just wondered why they stopped them anyway , i mean the NASCAR thing would of showed at least your insurance for the car so why did they choose to stop them for all the police knew it could of been you driving until they stopped the car , im not doubting your friend wasnt insured just seemed strange

anyway as you were