unwittingly bought a used car with outstanding finance

[moliu3000]

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[R0b]

Can you provide the full name of the company CLS as there are so many companies with the name CLS in it. I am presuming you are referring to CLS Finance (https://www.clsfinance.co.uk/) but your confirmation that this is the company would be helpful.

I dont think their sole reliance on the fact that you might live in what could be described as an affluent area (if indeed they are implying that) would be sufficient. Market value of a car depends on a number of things, including its condition, mileage, age etc. And if theres a number of websites suggesting a similar valuation then that could defeat their argument.

Solicitors fees are likely to be in the region of at least £1,500 - £2000 from start to finish and that's best case scenario. Worst case you might be looking anywhere between £2,000 - £4,000 as an average.

So if anything, you are probably better off going it alone if you do want to pursue it. Next steps would be to send a letter before action setting out the background, the wrongdoing by CLS and what action is required to resolve the matter.

One thing that's sprung to mind and I forgot to mention earlier is that you said the car was parked on your property and your CCTV captured this. Under the Consumer Credit Act 1974 a creditor is prohibited from repossessing goods subject to a hire purchase agreement if they are on any premises. I couldnt find any specific definition of what is meant by premises but if you look at the ordinary meaning, it would suggest any land or builds owned by someone.

As CLS are in breach of this specific provision, you can bring an action against them for that breach. It would be an alternative argument to conversion if that argument failed. If memory serves me correct, I believe there has been case law where a creditor in breach of that provision meant that a court had ordered the return of it - in your case that would assist you if claiming damages.

If you are serious about going it alone I have a letter before claim relating to similar circumstances that might help you to set out your position. You can have a stab at drafting it yourself and then post on here for comments before sending it off to CLS.

[moliu3000]

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[R0b]

First of all, please let us know the name of the finance company so we can establish who we are dealing with. It sounds like you've already done some homework on this because you've identified that there is no legal obligation to carry out a HPI check on a vehicle concerning a private sale. Equally, section 27 of the Hire Purchase Act 1964 affords protection to innocent buyers who have in good faith purchased goods subject to hire purchase - this is known as the exception to the general rule that a person cannot transfer title to goods that they don't own.

Can you confirm whether you have legal expenses insurance that covers you for this sort of dispute and does it include a solicitor acting on your behalf or is it limited to a legal helpline? As to whoever you had spoken to about the market value not applying in a private sale, I don't think they have their head screwed on properly (or that they are clearly unqualified or lack the legal knowledge) because that's not as a general rule correct.

It's well established and has been for centuries that the normal measure of damages where someone has deprived another of their goods, is to compensate the injured party for their loss. That loss would be the market value of the goods assessed at the time of the taking of the goods because that's a representation of your loss. It is also a general rule that any consequential losses flowing from the loss of the goods are also recoverable.

The cause of action for your claim against the finance company is conversion (there is also trespass to goods but that is less serious than conversion and only covers minor breaches). The tort of conversion covers a number scenarios with one of them being conversion by taking possession. The elements you are required to prove is: (1) an unauthorised person (2) deliberately took possession of the goods (3) with the intention of excluding the true owner of possession.

Seems to me that based on what you;ve said, you have all those elements satisfied. Do you have any written correspondence from the finance company? The onus is on them to prove that you knew that the car was on finance prior to agreeing to purchase it - that is a rather high hurdle to pass in all reality, especially where the seller has gone off grid.

So, now that the finance company has possession, your only real recourse is probably to issue a claim and take them to court over it. If you instruct a solicitor the case is likely to land on the small claims track meaning legal fees are not recoverable. So any use of a solicitor means it will come out of your own pocket and posibly cost you more than you are claiming. Your alternative is to double check any insurance to see if you have legal expenses cover and utilise that or finally, to go it alone and run the claim yourself.