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 Post subject: Outstanding finance
PostPosted: Fri Jul 10, 2009 12:37 am 
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Ok so when I first saw my Coupe I fell in love and was a bit stupid - didn't HPI check her. Did everything else right, did all my homework for common faults and checked round the car carefully, asking all the right questions. Got a receipt for the cash I paid too

5 months later, I'm clearing out a load of rubbish collected over the years and find the scrap of paper that acted as a receipt and thought it was no use now, so binned it.

A few weeks later, get a letter from Link Financial saying the car has outstanding finance! Quickly get an HPI check (horse, stable, bolted, I know) as I checked around and heard about a scam involving similar circumstances, but no, the car did have outstanding finance.

I was sent a form to fill in detailing my relationship with the seller, and after returning it the finance company demanded I return the car to them.

Fortunately, I had access to a specialist solicitor who told me that as we were both private sellers, I had every right to keep the car. Anyone without this advice would have felt compelled to hand over the car... A letter to the finance company explaining that it was a private sale and we had no conact before or after the sale, they removed the interest in me and MY car.

So basically the moral of the story is, HPI check your car first. If for whatever reason you don't, private sales cannot be pursued by finance companies in any way (if one party is a trader, I can't help you) - despite what the finance company will demand from you. As not everyone has access to a solicitor that can inform them of this, I thought I'd share my story


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PostPosted: Fri Jul 10, 2009 5:03 pm 
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oh wow thats interesting to know.

but then, if you buy private - then who cares? I guess you just have to make sure they arent a registered trader selling from home.

i wonder who they will chase now if the previous owner doesnt have the car?


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PostPosted: Fri Jul 10, 2009 5:15 pm 
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the debt is with the person not the car, just because the car was used as colateral when the finance was taken out doesnt mean it's passed on when the car was sold...

if they had wrote the car off the finance wouldnt have been cancelled because the cars gone would it.


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PostPosted: Fri Jul 10, 2009 5:16 pm 
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<slaps forehead>

blonde moment there, yeah of course :o

Although, how comes that if a car is sold with outstanding finance - companies can even try and claim the car of someone else if they have legally boiught it? Surely as soon as the V5 form is signed then thats that?


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PostPosted: Fri Jul 10, 2009 5:24 pm 
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didnt say they wouldnt try... they will often try the "the owner was not legally allowed to sell the car therefore they havent, so you have to take them to court for that and we'll take the car."

personally I think if you get a car on hp, you shouldnt have the v5 or there should be a different "keeper only" v5 for the person till it's paid off.


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PostPosted: Fri Jul 10, 2009 5:26 pm 
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hmm yeah true. But that could get awkward in different circumstances.....


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PostPosted: Fri Jul 10, 2009 5:30 pm 
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anything to do with money and legal issues WILL get arkward.


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PostPosted: Sat Jul 11, 2009 4:13 pm 
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Did get a nasty letter demanding I return the car immediately at one point. Which some people would end up doing without the right info. Seems harsh that they would demand the car back when they have no legal right to it...


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PostPosted: Sat Jul 11, 2009 5:05 pm 
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androo007 wrote:
Although, how comes that if a car is sold with outstanding finance - companies can even try and claim the car of someone else if they have legally boiught it?

Well that's the problem. If the seller could not legally sell it (because he doesn't own it, the finance company do) then the buyer cannot legally buy it. It's like me 'selling' you Tower Bridge for a tenner - just because you've paid doesn't mean it is now yours. :)

Thankfully the law[1] recognises the unfortunate position this puts the buyer into hence if the buyer is completely innocent (i.e. didn't know about the outstanding finance) then they have 'good title' of it. The finance company must pursue the seller for breach of contract.

Note this only applies to cars and bikes, and is specific to finance related situations - it doesn't cover the buyer if, say, the car was stolen (and thus again not legally sellable).

As Joff says, buyer beware and all that - better to avoid the situation than have to even go through the hassle afterwards!

Interestingly, if Joff were to sell the car on to 'Sally', then the finance company would have legal title to the vehicle and could repossess it from her!

Mathew

[1] Sec 27 of http://www.opsi.gov.uk/RevisedStatutes/ ... 40053_en_1


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PostPosted: Sun Jul 12, 2009 12:56 pm 
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Yes I did find that out whilst researching solutions to the problem once I got the first letter. As soon as the company had contacted me I couldn't sell the car on to an 'innocent party', even if they had no idea of the financial situation of the vehicle


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PostPosted: Wed Jul 15, 2009 11:26 am 
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Doesn't the V5 only state the registered keeper, not the legal owner?


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PostPosted: Wed Jul 15, 2009 12:22 pm 
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Yes, what's your point? (not meaning to sound blunt but can't think of a better way to phrase the question) :thumbup


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PostPosted: Sat Jul 18, 2009 4:57 pm 
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Joff wrote:
Yes I did find that out whilst researching solutions to the problem once I got the first letter. As soon as the company had contacted me I couldn't sell the car on to an 'innocent party', even if they had no idea of the financial situation of the vehicle


Where does this leave you now?
Unable to sell the car I presume.
So how do you overcome this issue when the time comes to sell it as you inevitably will?
Uncle Buck


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PostPosted: Sun Jul 19, 2009 3:21 pm 
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also when you do try to sell it on and the buyer does an HPI check it will possibly still show that theres outstanding finance on it if it hasnt been settled by then :(


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PostPosted: Sun Jul 19, 2009 8:40 pm 
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In the end they said that they had removed the interest on the vehicle; however I agree that it probably is still registered as having outstanding finance. I'll get onto the financial company and the DVLA to clear it... Hadn't thought about that side of the issue


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PostPosted: Tue Jul 21, 2009 1:20 pm 
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Joff wrote:
Yes, what's your point? (not meaning to sound blunt but can't think of a better way to phrase the question) :thumbup


Just trying to find out what the difference is really.


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PostPosted: Wed Jul 22, 2009 4:56 pm 
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Fair enough. The legal owner is the person who has paid to own the car. The registered keeper is the person listed on the V5 and is responsible for insuring the car etc

In my case the legal owner would have been the finance company until it was established that I was an innocent party. I was the registered keeper though


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PostPosted: Thu Jul 23, 2009 4:28 pm 
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Got it.
Interesting really, I wonder why there is nowhere on the V5 that states legal owner.
I would have thought that this Government with their love of red tape would have found a way of adding it by now...


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