Logbook loan nightmare

Nomoredebt40

I am hoping someone can help me.
I purchased a used car for £3500 just over a year ago.
3 months ago, out of the blue, a ballif came to my door to repossess the car. I couldn’t believe what was happening. The ballif turned out to be very nice and told me he would tell the company he works for he couldn’t find the car, that he was also going on holiday for a week so wouldn’t be back to collect the car for about 10ish days. He told me the company repossessing was logbook money and I should get in touch with them.
I did.
Turns out, the previous owner had a £1500 loan on the car which wasn’t paid off. They wanted £3000 or they would take the car! No negotiations. No communication. Nothing.
They were rude and unhelpful, the manager always being in a meeting - he was in that meeting for weeks! They wouldn’t talk to me, they wouldn’t reply to my emails, they ignored my letters.
In the end I paid them. I gave them £1500 - when I offered them this they replied to my email in about 30 seconds - and told them I would pay up the remaining £1500 at £200 a week. Which I did.
Before I paid anything I contacted citizens advise who couldn’t help and also complained to the financial ombudsman.
I thought I would probably get my money back through the ombudsman as I bought the car in good faith.
I’ve just heard today that they are unable to take on my complaint as I am not a customer of log book money. I have no agreement with them therefore no legal standing.
Logbook money told them they owned the car and sold it back to me for £3000 - out of the goodness of their hearts!!
I didn’t know this. I thought I was paying off someone else’s loan and had taken over the credit agreement.
Is there anything I can do or have I just lost £3000?
Can anyone help?

BrassicWoman

your claim is against the person who sold you the car.

D_M_E

You ended up paying a total of £6500.

Why did you not refuse their "offer" of £3000 when the loan outstanding was only £1500 and let them take the car back?

Have you reported it to action fraud and the police?

As BrassicWoman says you now have to take the seller to court to get your money back - I would suggest the end total of £6500 since you appear to have been coerced into paying the extra £3000 to keep the vehicle, and when you win the case escalate to HCEO but if the seller haqs no money and had to resort to logbook laons then the chances of payment are probably low but you never know.

Has the lender now confirmed that you now own the vehicle?

jonesMUFCforever

If this was a private sale then its curtains - you have been done up like a kipper.
If you bought from a garage then you have rights - but you have now paid so the chances of getting anything back are slim unless you have deep pockets to employ a solicitor.

macman

Did you ask the seller if there was any finance outstanding?
Did you run an HPI check to confirm his response?
I suspect we already know the answer.

foxy-stoat

Even if the seller said there was no finance and HPI came back clear there is not a lot the OP can do - as logbook loans dont have to be registered on there - it is only best practice to.

OP should of really driven the car somewhere safe and bought another one for the £3000 he paid the log sharks and sold the car for spares to get some of his money back.

Pixie5740

Oh dear, what a mess! OP if you purchased the vehicle in good faith without notice of a conditional sales agreement, which I think a Logbook Loan comes under, then you obtained a good title under section 27 of the hire Purchase Act 1964.

What this means is that you weren't liable for the outstanding loan and the Logbook Loan company could not have legally seized your car. You are now in a position where you have paid £6,500 for a £3,500 car. Was it really a bailiff who turned up to seize the car or was it just a debt collector? There is a big difference between the two.

What to do? You could try and recover the money from whomever you purchased the car from. However, if they had to resort to using a Logbook Loan they probably don't have a pot to !!!! in. I think it's worth making a formal complaint to the loan company and escalating matters all the way to the ombudsman if necessary. Now I'm not saying you will win but £3k is a lot of money and in my opinion is worth the price of a few postage stamps.

Gentoo365

Surely the £200 payment arrangement constituted a contractual relationship? So you can complain.

Not sure how you would win though as you basically paid the money knowing what it was for. I dont think you were mislead by the loans company.

DCFC79

Cant believe you contacted the ombudsman over this, your case is with the seller. As mentioned did you do any hpi checks ?