Car with outstanding finance

[Wieniek]

Hi on 15.05.2020 I bought car from Facebook marketplace... Seller ID match with logbook name.. After insuring the car I drove back home.. When I arrive I had a bad feeling something is not right.. I looked online and I done HPI check and sounds like car have outstanding finance with Moneybarn... I try contact owner to return the car but he block me on Facebook and on his mobile number. I contacted citizen advice and they said I should email moneybarn and explain I bought car with good faith. Im really worry now they will reposses my car... What's my next steps?

[R0b]

Hello, Moneybarn are notorious for taking possession of the car if they find out it has been purchased with finance on it. Whether you tell them about it now or they figure it out later, the result will likely be the same except if you tell them in advance, they may take the view that you already had suspicions that the vehicle was financed and you are put in a harder position to argue otherwise.

Section 27 of the Hire Purchase Act says that if you purchased a car in good faith without knowledge of the finance agreement at the time of purchase, then ownership transfers to yourself.

There have been several instances on here where Moneybarn have used an agent to turn up and either ask for the keys or they just remove the vehicle - If you hand the keys over then you may be deemed to consent and acknowledge their ownership of the vehicle. Most of the users have not come back to us but I remember that one user decided to take legal action and Moneybarn eventually settled by saying they would return the car if the user dropped their claim, which I think they agreed (although they could have pursued other damages and compensation).

The choice is yours as to how you want to deal with this but I honestly believe that if Moneybarn catch wind of this, your only option could be to sue them and the onus will be on Moneybarn to prove you had knowledge at the time of the sale.

[Wieniek]

Hi Rob I already send email to moneybarn informing them I bought a car without knowing about finance and waiting for replay.I'm really worry now... Car have few mechanical issues and I don't know if I should fix it? So if agent turn up to my house I shouldn't give him keys back? What's sort of cost will be talking if I want to sue them?

[R0b]

Like I said above, if you hand the keys over then you may be deemed in law to have accepted that the car belongs to Moneybarn and not yourself and you will be out of pocket for what you paid to the seller. Whether you choose to give the keys back is up to you, I can't tell you what you should and shouldn't do. IF you are happy to lose your money and the car, offer them to collect it otherwise tell them where to go.

Again, I can't comment on the repairs as that is your choice.

Court fees depends on how much you are claiming for. Typically, you will be claiming the price paid for the car and any losses suffered by the car being repossessed such as travel costs of a bus, hiring a car etc. You can find how much you would need to pay by checking the court fees list (se page 5): Fees in the Civil and Family Courts – main fees (EX50) - GOV.UK (www.gov.uk)

[Wieniek]

Update... After putting seller photos on local Facebook group and asking for his address seller contacted me saying he don't have money now but by Tuesday he should give me money back and he will take car... I don't know if I can trust him.. If I give him car back this case will definitely end? I'm really tired now

[DE DOGS]

The lesson is if you were tricked before why trust him now ? after being blocked on Facebook and cell phone. Wait until you get the money back.

[Wieniek]

If this case will end if I return a car? Should I contact moneybarn ask them for advice? Everything worry me now... If I bought the car and I know now is on finance returning the car don't class as reselling? Because is illegal to sell car on finance

[R0b]

I already said before that you have protection as a result of the sale, so I don't know why you decided to take it upon yourself to try and return the car but that's your choice. Nobody can tell you whether this will be the end of it until Moneybarn respond to you and set out their own position. Why would you ask Moneybarn for advice when it's their own vehicle you are in possession of? What do you think they are going to say?

I very much doubt the seller is going to come back to you and give the money back but under no circumstances do you hand over the keys without the money in your account by bank transfer (not cash), nor do you agree to meet up in a quiet location to do the exchange and it would be wise to take someone with you if the seller does somehow agree to refund the money.

I would just keep the car in this instance but it's your money and your issue.

[DE DOGS]

My advice is, to find a lock-up garage and keep it there, once you have your money back, or Moneybarn tell you IN WRITING to keep the car and keep it there. I don't think there is any further advice you need.

[Wieniek]

I confused now... Im protected by section 27 but moneybarn still own a car? If I decided to keep a car what's my next step? I don't want seller to get away with this scam... Should I wait till moneybarn replay to me?

[Wieniek]

Sorry if I sounds stupid but whole this case cost me a lot of stress... I don't understand how logbook is not proof of ownership but you can sell a car having just logbook... I will wait till moneybarn respond to my last email with questionarre what I fill in.. I send this on Tuesday... Anyone know how long take them to replay?

[MIKE770]

as history states HP are owners until account repaid, many times a person lost the car to HP companies as it is their vehicle until purchaser (Original) settles the HP. many sold on then get repossessed by HP Companies who legally own the car and the person left no car and no refunds from seller, the car (Property) belongs to the HP company as you will see,
"Law of Property Act"?
They could repossess you lose out, or ask settlement figure from you to keep car? if you loose out could take other person to court BUT you could be asked why to HP checks prior to handing money over> and has the other person got assetts?? so many questions if/buts. hence HP Checks vital before purchasing as many find people find out>

[Wieniek]

Hello money barn replay to me saying car it's my now... Thank you all for help

[DE DOGS]

You can take it out of the lock-up now, and get it repaired. But make sure you have a letter first from. Moneybarn that states you now own it outright, OLD saying trust nobody.

[Wieniek]

We have now completed our investigations and as a result we uphold your claim to be an innocent purchaser of the above vehicle. We apologise for the delay in getting back to you.



On that basis, we will now pass title (ownership) of the vehicle to you and release our interest in it on HPI.



You should keep a copy of this email so that in the event that you wish to sell the vehicle at a later date you have confirmation that we no longer have an interest in it.



Should you purchase a second-hand vehicle at any point in the future, we respectfully suggest that you undertake an HPI enquiry before purchase which will inform you of any outstanding finance and do not rely on information provided by the seller or the V5 document which is not proof of ownership.



We reserve the right to take any action we see fit against our customer and as a result we request that you do not mention any of the contents of this letter to the person from whom you purchased the vehicle or inform them that we have passed title to you. If you have any further questions, please contact Moneybarn directly.
That's what they send me... I didn't lock the car or anything like that Thanks Again... I hope my case will help somone in future