i bought a car,paid off finance,do I owe?

[katebrunsdon]

I recently bought a car for �10,000.
I paid off the finance that was owing by the seller for �10k and was on the phone to the finance company for 2 hours and paid it and was re-assured that the car was free from finance..(the company was black horse).

The seller has been phoning me (5 days later saying that they messed up and only took �1,000 by card over the phone and want the other �9,000.

I didnt like the car and p/xed it with my brothers subaru (worth �6k and he gave me �4k) before I knew this, and he is worried that they are going to re-possess the car.
Can they do this or will they come to me?
They assured me that the car was free from their interest when we ended the call and I paid the �10k..(even though the lady at the other end messed up and only put through �1k,..........her mistake!!)

I have just found this out and want to know where we stand.......thanks

[kempie]

I cannot see the problem.

From what I can make out of your explanation:
You agreed to pay Black Horse �10,000.
Your card was only charged �1,000.
You still owe �9,000.

Pay the �9,000 and your debt is cleared.

[joko]

check you bank and card etc and anything pending and speak to black horse yourself - don't deal with the seller

as kempie said, you owe this.

clerical errors don't write off debts - otherwise everyone would be at it!

banker saying "oops, silly me" won't wash i'm afraid.

[Loosehead]

So you are trying to kepp 9K because of a clerical error. Sorry it does't work like that. You owe 9k, and they could charge interest if they think you are attempting to welsh on it. The loan is still secured on the car and they can go after the car regardless of whatever deal you did with your brother.

[Whickerman]

actually, the finance company holds the ownership until all debts are settled - indeed, it's illegal to sell a car with outstanding finance as it's not yours to sell.

In your case you've since sold it on, but again it wasn't yours to sell. They can indeed repossess, leaving the buyer without a car, and you and teh original seller facing a civil case.

If you can settle this early, do so.

[andrew123]

Hi Kate, despite what the other answers say, here is what the law states:

The hire purchase act (now incorporated into the Consumer Credit Act) states that the first private purchaser gets good title to the car if they are innocent.By innocent purchaser the law states that if someone didnt know or believe the car to be subject to a finance agreement then the finance company cannot then by law repossess the car as it belongs to the innocent purchaser.
If you bought the car and believed it had been paid and were told so at the time and then got home and sold the car to your brother and he knew or believed that it had been paid for and all finance was paid then you are both innocent purchasers and therefore he has good title to the car and they cannot repossess it.
If they then tell you days later that they made a mistake and they pushed the wrong buttons then this doesnt change the law.
At the time of sale to you and your brother you both believed that it was clear of finance.

However, you still owe the original seller �9000 as you had a contract to buy it for �10000.
Therefore they cant repossess the car but you still owe �9000

[katebrunsdon]

I have the receipt from the seller saying that I paid �10,000 via my card to clear off all his finance.
I was told on the phone and so was he that it was all paid and that the sale was fine with them and that there interest in the car was removed.

When I did the deal with my brother I did show him this receipt and explain that me and the seller were on the phone to the finance company for 2 hours before we were both happy that it was all paid.

Therefore he bought the car in good faith as I did.

I guess I will have to pay someone the 9000 but am going to seek legal advice as I dont want to pay someone and then find myself having paid it to the wrong person and still owing someone else!
god,,,what a **** up!

[andrew123]

You will have to pay �9000 to the finace company but I would make then sweat a bit first!!
Its great to see the boot on the other foot for a change.
I just checked with my local trading standards as even though the car still belonged to the finance company, as long as at the time of sale you both believed it was paid off and cleared then the law states that the title passes to you and then on to your brother so they CANNOT repossess the car.
Your brother also needs to write to them telling them that he is the innocent owner and that he has title and they legally have to concede if all that you say is true and genuine

[joko]

heck, for �9,000, it's worth a go though...tell them you have a receipt for payment and as far as you are concerned you have paid.

they will likely want to see proof that it has come out of your bank account though