HPI innocent purchaser??

Phill_-_Liverpool

I bought a car (cash) about 8 months ago from a friend of a work colleague. I did not get a receipt and did not do a HPI check.
I do hold the last MOT and Log book.
Bearing in mind this was the first vehicle I have bought and did not know what a HPI check was.
Approx 2 weeks ago I was in an accident and my car has been written off. The accident was not my fault and this has not been contested by the 3rd party.
My insurance company (Admiral) then made me an offer for the vehicle which I accepted. They then informed me that there was outstanding finance on the car and as such a finance company hold an interest in the car. This finance is not mine.
Admiral have now advised me that it looks like the person who has the finance is defaulting.
At this point Admiral are waiting for the Finance company to get back to them to confirm whether they will consider me as an 'innocent purchaser'.
Just wondering if anybody has had any dealings of this or can offer advice.
Thanks In advance.

motorguy

You did not know the car had outstanding finance, therefore you are the innocent purchaser.

Whilst it may well be good practice to get a car HPI checked before purchase, it is not a legal requirement and you bought it in good faith.

Phill_-_Liverpool

Thanks Paul, Insurance being quite vague and warning me it could take weeks. I'm just worried that the finance company may take this as a golden egg opportunity and grab it with both hands as the previous owner is defaulting.
Guess I've got to just go through the "admin" process now!!!
Thanks

Phill_-_Liverpool

Sorry to drag this topic up again but I'm keen to know whether anybody else has been in this situation before and what the outcome was.
Also, has anybody been in the situation where they sold a car with outstanding finance?
Thanks again