Is it a Criminal Offence to sell a car with outstanding finance? URGENT

spender

Unfortunately I do believe the person at the end of the chain loses out because the car does still belong to the Finance company. I think the police would treat it as a "civil" matter. You have no intention to deceive (they would have to prove the intent) etc. If the police are on their way around it must be a pretty quiet area because I am sure there are lots of other calls!

astonsmummy

The last owner of the car his little or no hope of getting their money back, seen it alot on the telly.
It's a shame but if it was me I wouldn't part with any cash, you bought and sold the car in good faith.

mark55man

when I was looking for cars, I used a couple of websites to check HPI status based on plate number - a bit late now but you can still do that

also, one car I was really interested in showed finance outstanding,m but when I contacted the finance company they said it had been cleared but that records were sometimes really slow in gettin updated - so have you contacted the finance company to find out what the real position is

dizzybuff

this is only in regard to the finance company .... the repossesion of the car is a civil matter , its the selling of the car with outstanding finace is the criminal offence as this is gaining a precunerary advantage ..by selling the car...i think any way would have to check it ..so dont quote me

katebl

Sorry OP, I think I just pressed 'like' to this thread by accident - didn't want you to take that the wrong way! Good luck

far2812

The guy who bought the car from me has just come back saying he is taking me to court.

Honestly, I sold it in good faith - with no idea about the outstanding finance.

Any advice?

BitterAndTwisted

Just because the guy says he's taking you to court does not mean that he will. I think he's just trying to coerce you into refunding the money. Whether you give in to his blackmail is up to you. I wouldn't. You haven't done anything wrong, you're an innocent party in all this. Plus, taking someone to court is an expensive process and I doubt it would be worth his while unless the car is worth an awful lot.

Tom1234

far2812 wrote: »

The guy who bought the car from me has just come back saying he is taking me to court.

Honestly, I sold it in good faith - with no idea about the outstanding finance.

Any advice?

My advice - seek some legal advice. Just to be sure and put your mind at rest.

standupguy

The final keeper should not have let the car be repossessed without proof from the Finance company that it was subject to a Finance agreement.

If the original agreement was a lease agreement then there is little you can do as title remains with the Finance company until the lease is settled.

However, it is more likely to be a hp agreement in which case title can pass provided the new owner was unaware of the financial interest (hp agreement) in the car.

So, if it was originally a hp agreement and the person who sold it to you did not disclose the existence of the hp agreement then you will be considered an "innocent purchaser" under the CCA act and title passed to you at time of sale. Any subsequent sale transfers good title also.
If that was the case the person you sold it to should not have released the car as he had good title.

If that is the case he needs to get on to the Finance company claiming wrongful repossession as he was an innocent purchaser and requesting the return of his car or the monetary value he paid you.

zzzLazyDaisy

Far, did you buy the car from a dealer, or a private person?

If it was a dealer, you have protection and the car cannot be repossessed. If from a private person, the the hire purchase company is entitled to repossess the car as they remain the legal owners until the finance has been paid off.

Note, it MUST be hire purchase. If it was a bank loan to buy the car, or some other form of credit, then the lender must go after the original owner and is not entitled to repossess the car.

In any case this is not a crminal offence, but a civil matter, so the police will not be calling at your door.

So far, it seems that you only know about this as the result of a phone call, is that right? So you have no real evidence that the car has in fact been repossessed? If/when this person makes contact again tell them you know nothing about this, as far as you are concerned there is no finance on the vehicle, and you need copies of all documents and correspondence relating to the repossession of the vehicle, including full details of the organisation that claims to be the real owner, and that until you receive these documents you cannot comment (it is just possible, that the person is a scammer)

If this is genuine, you need to involve the person who sold you the car, as your buyer is entitled to be reimbursed by you, and you are entitled to your money back from your seller. If your buyer starts court proceedings, you will need to apply to have your seller 'joined in' as a defendent. That is assuming you know where they are now as you need their address to serve the court papers.

You're not having much luck at the moment are you?