Black Horse Ltd - Can they do this? URGENT HELP REQUIRED

edited 30 November -1 at 1:00AM in Loans
3 replies 1.4K views
Ant84Ant84 Forumite
117 Posts
edited 30 November -1 at 1:00AM in Loans
My dad bought a car around 3 years ago through Black Horse. As with any car finance agreement, I told him that he could send the car back to them after he has paid half of the balance. He then phoned Black Horse, they told him that he cannot do that as it is a personal loan agreement, not car finance. He accepted this and has this week advertised the car for sale, the buyer has done a HPI check on the vehicle and it has shown up as having outstanding finance, and now the buyer has understandably pulled out. Today, he has phoned Black Horse back and they told him that he cannot sell the car, as it still belongs to them.

The situation is quite confusing. I was under the impression that if it was a car finance agreement, then the car belongs to them until the balance is settled in full but you can send the car back to them and terminate the agreement once you have settled half the balance. On the other hand you have a personal loan agreement, where the goods you buy with the loan money never belong to the lender, and you are free to do as you wish with the goods but you still have to pay off the loan. Black Horse are obviously saying it is both, but surely it has to be one or the other, and my dad isn't legally bound to keep the car?

In their T&C on the contract, it says...


If you sell or otherwise dispose of the Goods at any time before the Total Amount Payable has been paid in full, we will require you to settle this Agreement within seven calendar days of the sale or disposal of the Goods. The settlement amount payable will be the unpaid balance of the Total Amount Payable (less any applicable rebate).

Surely they cannot do this? They are acting as though it is a personal loan, but with the rules of a car finance agreement.

Can someone please give me some advice on what I can do here? Quick responses would be greatly appreciated.


  • mafordukmaforduk Forumite
    625 Posts
    I would seek Financial Help with the Citizens Advice Bureau or a Solicitor!
    It doesn't sound right, but...if you told the Finance company that your intent for the money was to purchase a car, it maybe legal that they have put that in the Loan agreement!
  • YorkshireBoyYorkshireBoy Forumite
    31.5K Posts
    Part of the Furniture 10,000 Posts Name Dropper
    If you search the OFT website for "cash loan hire purchase" you'll find a wealth of information on 'cancellable agreements', including legislation and a very useful FAQ section.
  • emmareidemmareid Forumite
    21 Posts

    I used to work for Black Horse.
    What they sold you was a Car Finance Package..
    Its not exactly a HP, But however it is secured on the car..
    It is their way of doing a HP but on higher rate, and also having
    the finance secured on a car
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