Bought a car with outstanding finance, finance company going to repossess it

[hello405]

Good news! Burlington delivered the car back this morning.

I want to thank R0b for getting us through this. We cannot overstate how much you, and this forum, helped us. We called the "legal advice" line at our car insurance company and they didn't know about Section 27 and told us we should negotiate with the company to try and pay off the car loan. Not good advice.

One thing that this has made me think about is what a position of privilege we were in. I am internet savvy and have enough time to spend hours researching this, I'm a native English speaker with clear immigration status, neither of us has any criminal or financial records that would be problematic...the point is when Moneybarn tried to screw us over, we were in the best possible position to put up a fight, and it was still incredibly stressful and generally awful. I can imagine that a huge percentage of people who might be put in this situation wouldn't have won because they aren't as lucky as we are. So even though Moneybarn are essentially breaking the law, they are just playing the odds and hoping to do this to people who may be more vulnerable. So I feel very lucky, but also furious at what a bottom-feeding company they are. The guy from Burlington said to me, "they like to take the car and ask questions later".

The only thing I can say that I wish I had done differently is that we probably should have gotten the letter from the person who sold it to us sooner and just sent it to Moneybarn from the outset rather than trying to make the case that were entitled to the car whether we had it or not. I think legally that argument might have worked if we had to rely on it in court, but since we didn't have to rely on it, it would have been better (and cheaper) for us had they not seized the car.

In order for them to hand it back my partner had to sign a form saying we would not claim damages against Moneybarn. I am still planning on filing a complaint with the Financial Ombudsman and complete the internal one with Moneybarn which is still pending about their employee's actions. Is there anything else I can do to try and stop them from doing this to anyone else?

[R0b]

Glad to hear they've returned it to you. Quite clearly this is a tactic by Money Barn and they are taking on the risk that those who have their vehicle removed won't do anything about it. Legally, I don't think you can stop them because they are free to do what they want and if that means they are acting unlawfully, then they face the legal consequences if a claim is made against them. Seems to me MB have benefitted from this resolution because you've chosen to settle rather than take your claim to court, but maybe that's a lesson for next time and make sure you've got all the evidence you need and don't be afraid to challenge them even if it means taking them to court - you should not be left to pick up the losses for their actions.

I'm surprised the legal helpline didn't know Section 27 maybe you should make a comment to your insurance company about that and see what they say.

As for complaining to the FOS, not sure it will go anywhere because you've already settled and signed a statement saying you would not claim damages, though you could maybe argue for compensation for the inconvenience and stress caused to you (a work around for being unable to claim damages as a result of their actions).

Also, could be worth writing to the FCA about their conduct, and although the FCA don't take on individual complaints, they may keep it n record as if more people complain about what Money Barn are doing, they could eventually investigate. It's possible they may have breached some FCA rules but I'd have to look as I am not sure if they would definitely have done.

End of the day, is a small loss to you but just make sure you keep your options open in terms of remedies available if you ever have a similar issue.

Can I ask what was the contents of your complaint was about the employee's actions?

[johnnygunz]

I also purchased my car in good faith 2 years ago and had no idea it had finance on it as it was a salvage car. I spent thousands of pounds getting it right, including body work and a new engine fitted only for the finance company to come and seize it last month with no warning at all. I need help in preparing a letter before action to hopefully encourage them to return the car to me. I have sent them all the evidence, receipts etc but still won't return car.

[des8]

johnnygunz please start a new thread.
This one is nearly 4 years old, and may get ignored!
Also it is confusing for members if posters hijack existing threads

[MIKE770]

sold to you by a non owners therefore your loss it belonged to finance company sure others will advise next step? in new thread!

[DE DOGS]

Like most people, these company R----- ts rely on us not having any knowledge of the rules, my heartfelt thanks to helpers here who spend time for their assistance to help us. Thanks.

[MIKE770]

HPI Check protection from Outstanding finance

If you don't check for outstanding finance, your new car could be repossessed. You could lose the car and all the money you paid for it,
over the years this has been the case people out of pocket due to what has happened to you situation. different checks cost a couple £!s

[des8]

Don't forget sec 27 of the Hire Purchase Act 1964 gives protection to theinnocent buyer of motor cars already under a HP agreement, so not all is necessarily lost