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Liability question about Pay4Later

Anb
Anb Posts: 3 Newbie
in Loans
Hi,

If someone sells the goods "paid for" by Pay4Later before the end of the repayments are they or the buyer of the goods liable for the remaing payments? In this case the goods are a bike.

Regards

Comments

  • Gaz83
    Gaz83 Posts: 4,047 Forumite
    1,000 Posts Combo Breaker
    I presume Pay4Later is some kind of hire purchase scheme?

    The original purchaser would be liable to continue the repayments, I would (heavily) imagine.

    What's the exact scenario?
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  • Tixy
    Tixy Posts: 31,455 Forumite
    You need to check the details of the agreement signed.

    The 'purchaser' does not become liable for repayments.

    However if it is a hire purchase agreement then possibly in theory the asset could be repossessed if the original person does not keep up with the repayments.
    A smile enriches those who receive without making poorer those who give
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  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    Anb wrote: »
    If someone sells the goods "paid for" by Pay4Later before the end of the repayments are they or the buyer of the goods liable for the remaing payments?

    Legally the seller does not have title to the bike that would be required to sell it.
  • Anb
    Anb Posts: 3 Newbie
    edited 25 April 2015 at 8:21PM
    hi -thanks for replying.

    The scenario is a guy is selling a bike he has bought on finance (via Pay4Later) andhS not yet completed the payments. He tells me the credit agreement is between him and the credit agency with his house as collateral rather then on the bike i.e. Not like a car on HP. I'm checking to make sure I don't become liable before buying it.

    Regards
  • DCFC79
    DCFC79 Posts: 40,610 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    I wonder if this is a similar situation to buying a car on finance and you find out later on its still outstanding when it gets taken away.
  • Tixy
    Tixy Posts: 31,455 Forumite
    I would ask to see a copy of the credit agreement to ensure that the debt is not secured on the bike. To ensure he has a right to sell it and so you don't risk losing it.

    It may well be an unsecured credit agreement, I'd be very surprised if it was secured on his house.

    Are you talking bicycle or motorbike?
    A smile enriches those who receive without making poorer those who give
    or "It costs nowt to be nice"
  • Anb
    Anb Posts: 3 Newbie
    Hi,

    A bicycle.

    His statement is "It was purchased on finance which I have not
    yet settled. The loan is not secured on the bike, it is against me
    personally, the credit agreement states that if I don't pay they will take
    charge over my home, not the item the loan was used for. This is in line
    with the consumer credit act laws over unsecured lending."

    Regards
  • Tixy
    Tixy Posts: 31,455 Forumite
    If it is an unsecured agreement then yes he can sell it to you and there will be no come back on you.
    A smile enriches those who receive without making poorer those who give
    or "It costs nowt to be nice"
This discussion has been closed.
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