Logbook loans ..result

mukk · 27 April 2010 at 8:53PM

Ok..Heres some news for those who have been a third party in a logbook loans saga.

I'm not sure if this will be of help to some of you guys but it's some good news of sorts.

I bought a car from a car trader on November 16th 2008. We had all the history and the log book etc. All seemed very well with the car.
On the 3rd of April 2009 I arrived home (by foot on the school run) to find the car being winched onto a trailer by a collection agent.
I obviously challenged the 2 rather burly guys but with my young son in tow I was unable to stop them completing their task.
I rang my husband who was at work and put him on the phone to one of the men. They explained they were acting on behalf of 'Logbook Loans' and had been instructed to recover the car as the loan had not been paid.
We had not ever heard of 'LBL' , let alone taken out any form of finance with them.They then drove away with my car.
We contacted the motor trader from who we got the car and explained the situation. He seemed very shocked and was very willing to help sort it all out.
After a visit to the Police station, local dvla office and the citizans advice it seemed the guy who had sold the car to the motor trader had taken a 'LBL' out for £1000.. and delfaulted and sold the car all within a few days.
After realising the complexity of the case the motor trader withdrew his offer of help or refund and tried to wash his hands of the problem.

We started court proceeding through the small claims court against the motor trader as we had never entered into a contract with the previous owner.
The motor trader quoted 'Chattels law' and any other twisted take on the situation that seemed relevant to bolster his case..
The judge had to get verification from 'LBL' to ensure they had not broke the law in any way..hence 3 hearings.. but the outcome was an order was passed to give us a full refund because the motor trader 'DID NOT HAVE PROPER TITLE' therefor could not pass it on.
If the motor trader so wishes he can pursue the person who sold him the car and the judge commented the case would almost definately go in his favour.
The final hearing was today.. 27.4.10.