Outstanding finance on car but my HPI check was clear when I purchased. Can I resell?

jk0

mykkenny wrote: »

That's an interesting idea. How long is the 'insurance' part of an HPI check valid for? I used AutoCheck back in June 2013.

Hopefully I don't need it but it would be cool to have a backup plan.

Thanks for all the useful info and advice btw, you've all helped me worry a bit less about this!

Looking at the T's&C's, it says two years. However, it still might be worth contacting them if that debt came to light within the two years.

maddogb

shaun_from_Africa wrote: »

That is incorrect.
The first innocent private purchaser of a vehicle that has outstanding finance from an HP agreement gains good title to that vehicle.
This is covered by the Consumer credit act 1974 Schedule 4 Para 27b

I can't add links at the moment.

shaun I am a bit puzzled by this, I agree on the face of it, it appears to be correct but the details and context are a little vague.


For a start that act is intended to cover consumers buying something on credit, that doesn't appear to be defined here, and the context seems out.
The actual wording is transposed from a previous act from 1964 but the schedule doesn't make it clear whether or not that has been incorporated into the newer act or not.
The use here suggests that I can buy a car on finance and selling it on quickly makes it the genuine property of the new owner leaving only the debt as a legal liability, and if I were to skip the country or declare bankruptcy, never to be satisfied, again out of context with the act itself.
I suspect there is something I am missing as it appears in your interpretation to give people a "legal" loophole to scam finance companies.

bobbymotors

shaun_from_Africa wrote: »

That is incorrect.
The first innocent private purchaser of a vehicle that has outstanding finance from an HP agreement gains good title to that vehicle.
This is covered by the Consumer credit act 1974 Schedule 4 Para 27b

I can't add links at the moment.

The above is correct.

I have sold 5000 cars in my time, this has happened.

The OP should send a letter to the finance co explaining what happened and asking for clear title.

HPI will not pay anything. Their 'guarantee' is that if the information they give you at the time of the check is wrong at that time then they will pay, otherwise not.

And the information they gave at the time was that the car was not on finance, which, at the time of the check, was correct. HPI cannot be held responsible for a finance company failing to inform them that a finance agreement had been taken out on a vehicle.

shaun_from_Africa

maddogb wrote: »

The use here suggests that I can buy a car on finance and selling it on quickly makes it the genuine property of the new owner leaving only the debt as a legal liability, and if I were to skip the country or declare bankruptcy, never to be satisfied, again out of context with the act itself.
I suspect there is something I am missing as it appears in your interpretation to give people a "legal" loophole to scam finance companies.

That is exactly the case.
If you sell a vehicle with outstanding HP finance, the new buyer becomes the legal owner (provided that they had no knowledge or suspicion of the finance).
The finance company then has to chase you for the money.

maddogb

shaun_from_Africa wrote: »

That is exactly the case.
If you sell a vehicle with outstanding HP finance, the new buyer becomes the legal owner (provided that they had no knowledge or suspicion of the finance).
The finance company then has to chase you for the money.

So as a consumer the whole hpi check of outstanding finance is meaningless?

s_b

[QUOTEThey asked me to fill out some paperwork (which I didnt) and never bothered me again.][/QUOTE]


mm..........................................

mykkenny

s_b wrote: »

They asked me to fill out some paperwork (which I didnt) and never bothered me again.]

mm..........................................

The paperwork was for their benefit, full of legalese and questions that looked as though they were designed to trip me up and build them a case to repossess the car. I spoke to Citizens Advice and because I carried out my own HPI check before I purchased I knew that I was protected as an innocent, good faith purchaser, so I figured there was no need to do anything to potentially harm my position.

Of course now I may need to enter the lions den and have a discussion with the lions...

mykkenny

Quick update, with the bank holiday over I've been able to call the finance company and chat about the interest showing on the HPI check.

Amazingly they were very helpful and agreed to remove the interest as quickly as possible. So hopefully within 30 days the finance will no longer show on a HPI check and I can sell without worry.

Thank you everyone for your help :beer: