found out finance still owing on my car

welsh-dragon_3

I bought a car from a friend of mine, when he bought it he paid cash i know this 100%,
but am going to sell the car now and someone whom is intrested has hpi the car and they have said theres finance still owning on it,

the finance was take out in may 2008 and thats when the the previous owner bought it (not my friend) my friend bought it in 2009.
the finance company say the outstanding is due until 2012..

the guy who took the finance out lives about 30 miles from me so not to far away to call round his house !!!

where do i stand now...
i understand its not my friends fault as he was told there was no finance on the car and because the guy lived local took his word for it...
thanks in advance..

[Deleted User]

car or bike?however it matters not,the current owner could have the car re-possessed

welsh-dragon_3

car sorry, was looking for a push bike for xmas the same time as i was writing this :cool:.
not good news then, ive been looking around the net and it says i could sue the guy, maybe i would have to get my friend to sue him as he bought the car from him.. its messy arrhrh. help.

john_white

woodbine wrote: »

car or bike?however it matters not,the current owner could have the car re-possessed

no that's incorrect.

google it and you'll see it's not quite that simple

standupguy

Do your own hpi check or speak to the potential buyer to get details of the Finance co, tel no and agreement number.

Phone Finance company and ask them to confirm they still have an interest in the car.

IF no, ask them to remove hpi marker - if yes ask them type of agreement.

If a loan ask them to remove hpi marker as they do not have title to car

If HP they do have title but that has now passed to the innocent purchaser who bought the car from their customer and subsequently passed on to you - so ask them to contact their customer to sort out but ask them to remove hpi finance marker as they no longer hold good title ( under cca regulations if a buyer was unaware of Finance outstanding they are called an "innocent purchaser" and title passed to them at time of sale even though the hp was not settled.

IF it was a lease agreement, that does cause a problem as title can never pass in this way on a lease agreement

welsh-dragon_3

standupguy wrote: »

Do your own hpi check or speak to the potential buyer to get details of the Finance co, tel no and agreement number.

Phone Finance company and ask them to confirm they still have an interest in the car.

IF no, ask them to remove hpi marker - if yes ask them type of agreement.

If a loan ask them to remove hpi marker as they do not have title to car

If HP they do have title but that has now passed to the innocent purchaser who bought the car from their customer and subsequently passed on to you - so ask them to contact their customer to sort out but ask them to remove hpi finance marker as they no longer hold good title ( under cca regulations if a buyer was unaware of Finance outstanding they are called an "innocent purchaser" and title passed to them at time of sale even though the hp was not settled.

IF it was a lease agreement, that does cause a problem as title can never pass in this way on a lease agreement

thanks for the info,
ive done a hpi and this is the info that came back.

recorded: with "first responce finance ltd"
type: hire purchase
agreement date : 23/05/2008
term of agreement 39 months

i have the ref number and phone number, and they do have an intrested.
if i phone them and say i now own the car could the **** hit the fan and they could try and repo the car.
cheers

[Deleted User]

john_white wrote: »

no that's incorrect.

google it and you'll see it's not quite that simple

it might be that simple but in the end thats what it boils down to,if not why have HPI?

[Deleted User]

welsh-dragon wrote: »

thanks for the info,
ive done a hpi and this is the info that came back.

recorded: with "first responce finance ltd"
type: hire purchase
agreement date : 23/05/2008
term of agreement 39 months

i have the ref number and phone number, and they do have an intrested.
if i phone them and say i now own the car could the **** hit the fan and they could try and repo the car.
cheers

if the original owner misses finance payments then yes.

zzzLazyDaisy

You need to seek advice about the position of an 'innocent purchaser' under the Hire Purchase Act 1964 ...

more info here http://www.warwickshire.gov.uk/corporate/faqdb.nsf/By+Department/DC9AB9B464DF37DF80256DE2005F50CD

You might find it helpful to discuss the situation with consumer direct, who will refer you to your local trading standards office, if necessary.

standupguy

OP - you need to take care with some of the advice here as some is very good (from people with experience in such matters probably down to employment and knowledge in the Industry ) but one is just down to opinion and guesswork from an established poster and it shows that you should not rely on the number of posts someone makes to establish their knowledge and weigh up their advice.

John White and Miss daisy know what they are talking about but I am afraid Woodbine does not and is talking a lot of nonsense.

As Miss Daisy says look up the innocent purchaser clauses if you want to know more.

They cannot repossess a car that they have lost title (ownership) of.

From what you say it is clear that the person who purchased the car from their customer was not told of the outstanding Finance and is therefore classed as an "innocent purchaser" and title duly passed to them at time of sale. Title was passed again to you when you bought the car.

Woodbine, there is no legal requirement for Finance companies to register their interest with HPI and not all do.

You should phone the Finance co, explain the chain of events and let them know you are aware that the first purchaser of the car from their customer should be regarded as an innocent purchaser as they were unaware of any Finance outstanding and therefore you now also have good title and ask them to remove their interest at HPI.

They may contact their customer to verify all of this but depending on the balance outstanding may just let the customer continue to make the payments. They should however do the honourable thing and remove their interest. If they decline to do this tell them that you will take the matter to trading standards and the OFT and will make a complaint about their suitability to hold a consumer credit licence.

If their customer had not been paying the monthly payment they would have carried out a DVLA check to confirm the current owner and then come on to you to find out how you acquired the car.

welsh-dragon_3

Thanks for the info and taking time out to answer my questions,

ive spoke to the person whom took out the HP,
he said he has £600 left to pay and is going to phone the finance company up tomorrow to have the intrested lifted. and carry on paying the outstanding £600 .(if this is true as the finance is meant to finish in 2012)
he said he has paid a lump sum off when he sold the car,, hummmmmm yer right !!!

the time he sold the car he was at hard times aaaaarhhhh these people hey.

am going to speak to him again tomorrow night and see what he has to say,,

then phone the finance company up myself to see what the full story is.
and be stating the wording that standupguy has posted.
thanks again
and hopefuly a happy ending.