Purchased a car, Moneybarn threatening to repossess due to previous owner's outstanding finance

unholyangel

Mr_Singleton wrote: »

The finance company that had their property stolen would still have a financial interest in the vehicle. If the OP wanted to sell they would be legally required to tell any purchaser of the outstanding finance despite having title.... one would assume.

Have you read the act?

(2) Where the disposition referred to in subsection (1) above is to a private purchaser, and he is a purchaser of the motor vehicle in good faith without notice of the hire purchase or conditional sale agreement ("the relevant agreement") that disposition shall have effect as if the creditor's title to the vehicle has been vested in the debtor immediately before that disposition.

bobbymotors

Mr_Singleton wrote: »

The finance company that had their property stolen would still have a financial interest in the vehicle. If the OP wanted to sell they would be legally required to tell any purchaser of the outstanding finance despite having title.... one would assume.

Then you assume wrong.

As an innocent purchaser you will (eventually...several months) get clear and unencumbered title to the vehicle.

wesleyad

And to add the financer hasn't lost the ability to pursue the original owner for the money... remember its them that's took the finance, and upon selling the car were in possession of money that should have been handed over to the creditor. It's this money that is the "stolen goods", and not the car itself.

bobbymotors

wesleyad wrote: »

And to add the financer hasn't lost the ability to pursue the original owner for the money... remember its them that's took the finance, and upon selling the car were in possession of money that should have been handed over to the creditor. It's this money that is the "stolen goods", and not the car itself.

That's exactly what happens, yes: the original borrower on the HP agreement still owe the finance company the money, plus charges / interest.

If they've ever done it before they may well get done for fraud too.

As a suggestion could admin sticky this thread or a similar one? This is a repeating issue on here?

Azbo848

Hi all first post hope people can help. I’ll try sum it up short hand as it’s blowing my mind

I part exchanged a car. The car I got in return was on finance and was then taken by the finance company. I informed the police and they tracked down my original car. During the time it took them to track down the guy I did the deal with had sold the car on. The car was picked up in an unrelated offence and the police seized it. The police now have the car locked up and there is a police civil case over ownership off the car. Weather it be me or the new guy that has brought it off the “fraudster”. If I loose the case in court where do I go from then

CardinalWolsey

Azbo848 wrote: »

Hi all first post hope people can help. I’ll try sum it up short hand as it’s blowing my mind

I part exchanged a car. The car I got in return was on finance and was then taken by the finance company. I informed the police and they tracked down my original car. During the time it took them to track down the guy I did the deal with had sold the car on. The car was picked up in an unrelated offence and the police seized it. The police now have the car locked up and there is a police civil case over ownership off the car. Weather it be me or the new guy that has brought it off the “fraudster”. If I loose the case in court where do I go from then

Please create your own thread, so that replies to the original and to your own query are easily distinguishable.

what707

I just want to post a quick update about what happened with our car. It was not clear to us if we, as the second purchaser, were covered by Section 27 of the Hire-Purchase Act 1964. I think there is a good chance we would have won in court if it came down to it, but instead we got a signed statement from the person we bought the car saying that he purchased the car in good faith in a private sale with no knowledge of finance being on the car (ie, the requirements of Section 27 of the Hire-Purchase Act 1964).

Although we had this statement in our possession (plus the previous purchaser's receipt, signed by Moneybarn's client) and told Moneybarn we had it, in a registered letter, Alysa from Moneybarn decided to repossess the car anyway.

We called Moneybarn and they told us a pack of lies and tried to make us think that the person who sold us the car had deceived us in some way, in the hopes, I think, that we would turn on him rather than trying fight Moneybarn.

We sent a formal 'Letter Before Action' to Moneybarn telling them that we were going to sue them and demanding that they send any evidence regarding the person we bought the car from. We got help writing this on the Legal Beagles forum, which I would highly recommend. Within one hour, Moneybarn had sent us an email saying they would return the car and remove the finance notice on the vehicle if we wouldn't make a claim against them.

What this tells me is that Moneybarn are a bunch of chancers. Alysa tried to intimidate us with her legal-sounding letters and by sending some thug to take our car, but when it came down to it, they knew they had no case and were relying entirely on the hopes of scaring us into not pursuing it. They ended up paying to have the car delivered back to us.

If you are in this situation with Moneybarn, DO NOT GIVE UP. Do not believe them when they say your claim is not valid. They will say anything to get you to give up and go away without the car.

wesleyad

Thanks for the update, glad everything turned out well. Imagine how many cars they repossess this way (and probably still pursue the original debtors as well!)

robatwork

Thanks for updating an interesting thread.

I'm sure you'll be spending the £20 on an HPI check in future - certainly less than what you must have spent on the mechanic!

Happy motoring...