Donate SIGN UP

Car Repossession Law

Avatar Image
woody382 | 18:11 Mon 07th Oct 2013 | Law
6 Answers
today 2 males arrived in a car with no ID and just a bill of sale notice, stating that the car I bought in July had outstanding finance from the previous owner and that they were repossessing the car. As you can imagine i did not give them the car. Please could you help on the following questions.

1/ does a person need any form of SIA license etc to act as a recoevery agent to repossess a car.
2/ can they repossess a car that I bought in good faith, that had outstanding finance on from a previous owner, from whom i bought the car from.
3/ Does the recovery agent need the court order in their possession to recover the vehicle.
4/ Do they need a court order in the first place or can they just recover the car
5/ the DVLA issued me with a new log book. would they have issued me with a new log book if their was still a vested interest of a third party ie. log book loans.
thank you for your help
Gravatar

Answers

1 to 6 of 6rss feed

Best Answer

No best answer has yet been selected by woody382. Once a best answer has been selected, it will be shown here.

For more on marking an answer as the "Best Answer", please visit our FAQ.
Re Q5:
A V5 ('log book') records the registered keeper of a vehicle, not the owner of it. DVLA do not keep records of who actually owns a vehicle, and they have no interest in such matters. Millions of vehicles, for example, are 'company cars' which are registered to the driver's address - so that he'll receive any speeding tickets, etc - but are actually owned by his employer or a leasing company. DVLA will have no knowledge that such vehicles are 'company cars' or of the financial arrangements relating to them. Similarly they have no knowledge whatsoever of whether a car was bought for cash or 'on finance'.

Re Q1:
Repossessing vehicles is not a 'licensable activity' for SIA purposes:
http://www.sia.homeoffice.gov.uk/Pages/licensing-activities.aspx

Re Q2:
Buying a car in good faith (from someone who had no right to sell it) gives you no more rights than, say, if you'd bought stolen goods in good faith. The goods/car still belong to the original owner. All you can do is to take civil court action for compensation.

Re Q's 3 & 4:
I've repossessed hundreds of vehicles (as a 'trade plater') but always from the person who'd defaulted on the finance, rather than from a third party. There were certainly no court orders involved in the process then and I doubt that they'd be required (in the first instance) in your circumstances. However, since you've refused to hand over the vehicle, a court order could now be sought which would force you to give it up (or face criminal prosecution for failing to comply with a court order).
Question Author
thank you so much. that's answered my question
Do an online HPI check on the car and see if there is finance on it.
You should have done one before you bought the car!
Was this a private purchase or trade?
NO NEED FOR SIA LICENSE
2)YES THE CAR CAN STILL BE REPOSESSED EVEN THO FINACE IS STILL OWED
3)YES THEY DO NEED A COURT ORDER
4)NO THEY WOULD NEED THE COURT ORDER FIRST
5)YES A NEW LOG BOOK CAN BE SENT TO U AS , THE REGUISTERED KEEPER IS NOT ALWAYS THE LAWFULL OWNER
my son did a check on his motorcycle when he bought it and the search came up negative for loans etc. it got stolen 2 months ago and the insurance company are not paying out as it has a loan on it. you are damned if you do and damned if you don't.
Re Eddies reply

The problem could be that the car was subject to a Bill of Sale agreement or "Log Book Loan" and
unfortunately it is not mandatory for the lenders to register this loan against the car so a HPI check may NOT show that finance is outstanding.

However it would appear that HPI do offer some protection

If a customer conducts an HPI Check, follows HPI's buying guidance, but subsequently finds that the vehicle is subject to a 'Bill of Sale' agreement that was not flagged, the buyer will be protected by the HPI guarantee, which provides financial reimbursement of up to £30,000 (subject to terms and conditions,

The above is a quote from an Honest John article

http://www.honestjohn.co.uk/news/buying-and-selling/2011-05/logbook-loans/

1 to 6 of 6rss feed

Do you know the answer?

Car Repossession Law

Answer Question >>

Related Questions