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logbook loans scams

Anyone got any advice please, A friend of mine purchased a car for £5.000 only to find out 2 months later it has been taken off them because the car is on a logbook loan from the original owner, who sold it to a car front from which they bought it.The police say its a slim chance they will get their money back. Surly there must be a law from people doing this?
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Comments

  • amyloofoo
    amyloofoo Posts: 1,804 Forumite
    Debt-free and Proud!
    I'm pretty sure that what they've done would be classed as fraud... I'm sure others will be along to advise
  • Apples2
    Apples2 Posts: 6,442 Forumite
    That is what a HPI check is designed to protect against. To ensure there is no third party interest.
    Same as buying a stolen car. There are laws about stealing cars but you would still lose it if you bought one.
  • KingElvis
    KingElvis Posts: 4,100 Forumite
    The logbook boys are not a friendly bunch either, they have the worst repuation possible so expect bolt croppers etc
    "We want the finest wines available to humanity, we want them here, and we want them now!"
  • ihateyes
    ihateyes Posts: 1,326 Forumite
    i would sue the previous owner..... the logbook company take the logbook so how did they manage to flog the car without it.

    if they read the loan terms and conditions they would kno thy cant sell car.
    Promo codes are never always cheaper..... isnt that right EuropCar?
  • dt3887
    dt3887 Posts: 275 Forumite
    Apples2 wrote: »
    That is what a HPI check is designed to protect against. To ensure there is no third party interest.
    Same as buying a stolen car. There are laws about stealing cars but you would still lose it if you bought one.

    unfortunately, not all logbook loans companies register it on the systems that HPI checks show. there was a big thing on watchdog about this last month, i will see if i can find the link

    http://www.bbc.co.uk/blogs/watchdog/2011/05/log_book_loans.html
  • Somerset
    Somerset Posts: 3,636 Forumite
    Part of the Furniture Combo Breaker
    dt3887 wrote: »
    unfortunately, not all logbook loans companies register it on the systems that HPI checks show. there was a big thing on watchdog about this last month, i will see if i can find the link

    http://www.bbc.co.uk/blogs/watchdog/2011/05/log_book_loans.html

    Just watched the clip. Amazed that this is the law. I assumed a HPI would show all outstanding liens, but as you said, the payday loan co's do not have to register an interest and often don't - it's entirely voluntary. So there is absolutely no way of knowing if you're buying a car with a clear title !
  • Apples2
    Apples2 Posts: 6,442 Forumite
    Was the v5 present when purchased?
  • This happened to someone I know. They never got their money back. Though I don't know how hard they pressed the issue, or whether or not they explored any legal channels.
  • verityboo
    verityboo Posts: 1,017 Forumite
    Apples2 wrote: »
    Was the v5 present when purchased?

    After handing over the original V5 to the loan company they could have just applied for a replacement, only costs £25
  • Apples2 wrote: »
    That is what a HPI check is designed to protect against. To ensure there is no third party interest.
    Same as buying a stolen car. There are laws about stealing cars but you would still lose it if you bought one.


    The HPI checks were done
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