Seller lied to me and sold me a car with outstanding Santander Consumer Finance left on it.

Matt1111

Hi everyone,

Just need a bit of advice as you guys might have some ideas and solution for this.
Purchased a car from this private seller 7 months ago. Very stupid of me I forgot to do a HPI check on it.

I am now trying to sell the car due to ULEZ expansion so decided to do a HPI check before putting it up for sale. Came up as FINANCE outstanding with Santander consumer finance and it was taken out in 2019 so by the previous owner.
Contacted Santander finance and explained to them that I was wrongfully sold the vehicle illegally by one of their clients that took finance for it. All they've said is they're looking into it and asked to provide proof of V5 that the car is in my name and address (crossed out the document reference number incase they turn around and try change the ownership of the vehicle). Emailed them pictures of my V5 it's been a few days, still no reply.

It does state on the citizens advice website that : "If you bought from a private seller, tell them 'I have a right to a refund under the Sale of Goods Act 1979, because you didn't have the right to sell me the car".

Should I be worried about losing my car? Or are they just going to take off the finance marker off my car's database?

Any advice will be appreciated.

Thanks 

kaMelo

The starting position is that you don't own the car. Santander Consumer Finance own the car and they are not just going to remove the finance marker like that as the car is the security on the money they lent. The fact the previous owner stitched you up was nothing to do with them and not their problem.  but, that's not the end of it.
As advised by Citizens Advice you do have the right to a refund from the person who sold you the car and this would be the preferable option. You get  your money back and Santander get their car back. If you ask the seller they may just pay up, if not then you can sue them, if you can't find them then it's not straightforward. 

Despite the starting position that Santander own the car there is potential for you to keep the car as long as you bought the car in good faith with no knowledge of any outstanding finance.  Essentially you did nothing wrong when purchasing the car so have good title to the car. I'm not actually sure which party the onus of proof falls on, you or the finance company
The best way to defend yourself in this scenario I would suggest is to be open and honest with Santander, show them what they ask for regarding documentation such as the purchase invoice or where you bought the car and from whom etc. 

It may go well if they believe you, if they don't it may get very messy. There really is no way of telling which one they will pursue.

NSG666

I agree that you should play ball with the finance company who might be able to sort it easily with the person who took out finance. If you decide to reject the car under SoG Act and the seller can only pay you back at 2 quid per week you are going to be stuffed. Worse case scenario you might have to settle to the outstanding finance to keep the car and take the seller to small claims court (if he could afford to pay).

macman

I would have thought that your first enquiry would be to the vendor... 
Did you ask him if the vehicle had any o/s finance on it? Did he state that it did not?
Your header says that he 'lied to me', but the post gives no indication of this?

poppasmurf_bewdley

By giving Santander the V5 details, they will know where to come to repossess the car!

Matt1111

Thank you for your replies guys!

I have been as transparent as I can with santander. Given them a good explanation that the seller didn’t tell me anything about the finance and that he’s sold the car to me stating that there was no issues it.
The Santander consumer advisor on the phone did tell me that in situations like this they rarely repossess cars, they either get the previous owner to pay for their loans or they get me to fill up a form and the finance gets removed from the vehicle.
I have sent them a picture of my V5 (crossed out the ref number on it).
Just waiting for a reply from them.
I’m not ready to lose my car which I’ve worked hard for all these years.

The_Fat_Controller

@Matt1111, the problem is that it is NOT your car...yet

sourcrates

As a victim of a bad sell, you have more rights than you may realise. 

Even though the finance company is initially still the formal owner of the vehicle, you can use the Hire Purchase Act to claim ownership rights to the vehicle instead of the finance company, or claim compensation for your purchase money.

However, to do this, you must issue proceedings through the courts, and to start a court case claiming your consumer rights is a complex process that can quickly drain your time, energy and finances. 

However, with the right legal assistance, its not that hard, so if the finance company do claim ownership of the car, which despite what you have been told by them, is quite likely, then you need a good solicitor, and fast.

Matt1111

Santanders told me that they will require proof of the V5 with my name on it for the investigation to go ahead which will allow them to get in contact with the guy that took out the finance. The finance was taken out in 2019 so I'm quite shocked that they haven't tried to get in contact with him before. It's a confusing situation. 

NSG666

Matt1111 said:

Santanders told me that they will require proof of the V5 with my name on it for the investigation to go ahead which will allow them to get in contact with the guy that took out the finance. The finance was taken out in 2019 so I'm quite shocked that they haven't tried to get in contact with him before. It's a confusing situation. 

If Santander have been receiving the loan repayments then they would have no reason to contact their customer. If you look at it from their point of view (assuming payments being received) they have a loan agreement in place which is being fulfilled so they have absolutely no reason to be concerned. They've been contacted by a 3rd party claiming to have bought the vehicle but for all they know that could just be someone trying to cause mischief so why would they act on the info without actual evidence?

Matt1111

NSG666 said:

Matt1111 said:

Santanders told me that they will require proof of the V5 with my name on it for the investigation to go ahead which will allow them to get in contact with the guy that took out the finance. The finance was taken out in 2019 so I'm quite shocked that they haven't tried to get in contact with him before. It's a confusing situation. 

If Santander have been receiving the loan repayments then they would have no reason to contact their customer. If you look at it from their point of view (assuming payments being received) they have a loan agreement in place which is being fulfilled so they have absolutely no reason to be concerned. They've been contacted by a 3rd party claiming to have bought the vehicle but for all they know that could just be someone trying to cause mischief so why would they act on the info without actual evidence?

 Thank you, it makes sense to me now as to why Santander didn’t bother with the car. The previous owner has probably been paying off the finance on a monthly basis hence why I’ve had no issue with it so far and probably why it still flashes up on HPI because the finance is still active.

It was illegal from his side to be selling the car though which may mean Santander will be asking him for a full payment? The guy got himself into trouble by selling tbh..