Bill of Sale

[lulu0112]

Hello,

I bought a car 4 weeks ago via a Bill of Sale. I have just received a phone call from the company I bought this vehicle from saying that my finance application was declined and that I should return the car. I haven't even paid the first payment as yet.

What are my options? They have threatened to repossess the car. My understanding is that if I fail to get finance the Bill of Sale is void. This means I have a personal loan from the company which is unsecured. Do I have to return the car?

[labman]

Re: Bill of Sale

Section 7 of the Bills of Sale Act deals with this http://www.legislation.gov.uk/ukpga/...6/43/section/7



Bill of sale with power to seize except in certain events to be void.Personal chattels assigned under a bill of sale shall not be liable to be seized or taken possession of by the grantee for any other than the following causes:—
(1)If the grantor shall make default in payment of the sum or sums of money thereby secured at the time therein provided for payment, or in the performance of any covenant or agreement contained in the bill of sale and necessary for maintaining the security;
(2)If the grantor shall become bankrupt, or suffer the said goods or any of them to be distrained for rent, rates, or taxes;
(3)If the grantor shall fraudulently either remove or suffer the said goods, or any of them, to be removed from the premises;
(4)If the grantor shall not, without reasonable excuse, upon demand in writing by the grantee, produce to him his last receipts for rent, rates, and taxes;
(5)If execution shall have been levied against the goods of the grantor under any judgment at law:
Provided that the grantor may within five days from the seizure or taking possession of any chattels on account of any of the above-mentioned causes, apply to the High Court, or to a judge thereof in chambers, and such court or judge, if satisfied that by payment of money or otherwise the said cause of seizure no longer exists, may restrain the grantee from removing or selling the said chattels, or may make such other order as may seem just.

[Guest]

Re: Bill of Sale

What on earth were they thinking , letting you sign a bill of sale before the finance was arranged.

If it were me I would return the car and consider it a lucky break. bos agreements are a nightmare they offer little protection to the buyer.

Give it back but you owe no money
Have a look around for a regulated HP deal.
D

[teaboy2]

Re: Bill of Sale

Must admit it does sound a little dodgy letting you sign the bill of sale without actually doing any credit checks. As davy said, i would take the car back and count it as a lucky break and get a car on a regulated HP agreement. Though i wouldn't be surprised given the dodgy behaviour, to see you back on this thread telling us how they are demanding money for lost value or damage/repair to the car. Not that they would have a leg to stand on if they did make such demands.

[lulu0112]

Re: Bill of Sale

Thanks for your replies. Giving the car back is one option.

Under the circumstances outlined in my first post, can I be compelled under law to give the car back? Do I have to return the car?

[teaboy2]

Re: Bill of Sale

As said previously. Your best option is to return the car, and get another one from somewhere else. If you don't then this could become a very expensive legal issue that would likely end up in court where you would likely lose. As the bill of sale is likely to be subject to you being accepted for credit, which in this case as you have been declined for credit, the bill of sale is therefore void and the car is still the legal property of the car dealership.

Now you could talk to the car dealership and say, look the onus was on them to ensure the credit facility was in place prior to allowing you to take the car (most companies check with the finance company if they would accept your application prior to completing the sale). As they failed to do this, and as you rely on the car for work etc, then loss of the car would have a significant deterimental effect on your finances and living standards, for which they may be legally liable for due to their failure to check that you would be accepted for credit before allowing you to take the car. Tell them that you are willing to make repayments directly to them and draw up a repayment plan to offer to them instead of returning the car.

Personally as it seems you are not wanting to return the car, then if i was you i would speak to a solicitor before doing anything else.

[Guest]

Re: Bill of Sale

Thanks for your replies. Giving the car back is one option.

Under the circumstances outlined in my first post, can I be compelled under law to give the car back? Do I have to return the car?

Yes it belongs to them you signed over to them when you signed the BOS the finance company would have payed for the car and you could have redeemed your note on the last payment.

Did you not sign finance agreement when you bought the car?

If you are willing to fight for the continued possession of the car your next step would be to check the authenticity of the bill of sale, in order to be legitimate and actionable they have to be registered at the high court under seal.
You can apply for a copy it will cost a fiver I believe if you have the registration number an £40 if you don't,
If it were me however I would just hand the car back

The address is Judgement and Orders Section, Room E15, Royal Courts of Justice, Strand, London, WC2A 2LL ther is a phone number that you can use if you have the number but i do not have it to hand.

D

[labman]

Re: Bill of Sale

FWIW I agree with Teaboy and DavyB that you should hand the car back.

[lulu0112]

Re: Bill of Sale

Thanks for your response davyb.

I stand to lose my £1000 deposit.

[labman]

Re: Bill of Sale

Hi Lulu,

That is really frustrating. All Davy has done is outline the options available to you. He suggests handing the car back, but has also helpfully outlined the way forward if you don't want to. At the end of the day, that is a decision only you can make. We can make suggestions to you, but only you can actually make the ultimate decision of whether to hand it back or fight to keep it.

Goodluck in whatever you choose.

[Guest]

Re: Bill of Sale

There is an argument for you requiring the return of your deposit. The agreement has been made void and I think a court would say that the equitable solution would be that it would be rescinded in other words you give them the car they give you your deposit back.

If you wanted to try and claim this it would be important that you get the car back as quickly as possible and present them with a bill.

D