Car repossessed because of previous owner's debt

[akcsl]

In February I bought a car from a local car dealership. I got finance from that dealership with Barclays.

This evening a bailiff repossessed the car because the previous owner had taken out a loan with log book loans which it would appear he had failed to pay off.

His loans were nothing to do with me, he lived in Poole, I live in Blackpool. I'd never heard of or met the chap and I bought the car from a dealership.

Surely my contract is with the car dealership and log book loans should have taken out proceedings against the car dealership.

I was given no advance warnings about this. I am now left with a car loan for a car I don't have and I'm without transport. In addition, I felt humiliated having the car repossessed in front of the apartment block where I live. 50 apartments must have witnessed what went on.

Where do I stand legally? Has anyone heard of log book loans? I presume they have a terrible reputation.

[LuggerBugs]

Re: Car repossessed because of previous owner's debt

Log book loans do what they say on the tin. You take out a loan using your car as security.

Do a Google and you'll see that yes, they do have a terrible reputation.

Don't direct your anger at the poor sucker that apparently defaulted on his loan and left you high and dry. It IS possible he thought he was free and clear. Unfortunately, LBL tend to slap charges and sundries on at the drop of a hat, often escalating a small loan to one many times that of the original loan.

I personally have issues with the legality of their way of working, but I don't know if anyone has successfully challenged them.

Your only chance of recovering any money will be with the dealer. Thankfully you didn't buy privately, so you should have a case against the dealer. Presumably the bailiff left you a copy of their paperwork. So in the first instance I would contact the dealership with a copy of the paperwork and ask them what they intend to do about it. It is then up to them to take action against the person that sold them the car.

If they are a reputable dealership, you may find that they are prepared to fold, especially if you hint that you will be taking legal advice.

Failing that, you will need to get heavy. But if you do threaten legal action, you must follow through. I am a firm believer in the Mr Nice approach first though.
------------------------------- merged -------------------------------
This will shed some light on how bad LBL are...

http://www.oft.gov.uk/advice_and_res...raders/2263/1/

Unfortunately, as you were not the person that took a loan from these feckers, there is nothing you can do to challenge the agreement. The sad reality is, had the borrower challenged them, he may well have been able to successfully challenge that agreement, and quite possibly recover a great deal of unfair penalties.

As it is, you are now lumbered with this very poor outcome.

Actually, I've just had a thought. When the loan is taken out, you are supposed to hand your V5 over to the agent. So how on earth has the borrower managed to sell his car? Either the loan WAS paid off and he got his logbook back. OR the dealer bought the car without the V5. Do you remember if the V5 was a duplicate???

[Amethyst]

Re: Car repossessed because of previous owner's debt

Shouldnt the trader have done an HPI Check on the car before purchasing it, and certainly before selling it ?

[Sapphire]

Re: Car repossessed because of previous owner's debt

I thought that Ame but I'm not sure if an HPI check would flag up a Log Book Loan to be honest.

Hmmmmm we have a friend who is a car dealer, I'll give him a ring and ask the question.

[LuggerBugs]

Re: Car repossessed because of previous owner's debt

As the vehicle wasn't purchased on credit, at least not through LBL it wasn't, then an HPI check won't show outstanding finance owing to LBL. The car would effectively be owned free and clear. Apart from the little matter of a several hundred percent interest rate "owing" to these sharks.

[TUTTSI]

Re: Car repossessed because of previous owner's debt

One of my clients is a Motor Trader and I blieve you have to request this when you purchase a car.

When I next see him I will ask him about LBL to see what he knows and whether it would flag up. But I am sure Sapphy is right it probably would not.

[Sapphire]

Re: Car repossessed because of previous owner's debt

Hiya

Well I've had a chat with our friend and he says that you need to go back to the dealer AND go to the Office of Fair Trading too.
An HPI check will NOT flag up Log Book Loans.
Oh also he finds it suspicious that the dealer bought in the car without a V5 form. So all in all get in touch with the OFT and tell the dealer thats what you are doing, it might liven the dealer up a bit.

[Guest]

Re: Car repossessed because of previous owner's debt

Irrespective of what should have happened, your claim is against the dealership who sold you the car and you need to look to them to reimburse you for the full cost of the vehicle and any other costs associated with the finance.

By all means be nice, but only once and if they attempt to fob you off, issue a claim for the full amount, plus costs, interest and inconvenience. It may be for example that you need to obtain a replacement vehicle in a hurry, any costs associated with that may be added to your claim, although you do have a duty to mitigate loss and you cannot purchase a car you would not normally buy and expect that to be paid for.

[LuggerBugs]

Re: Car repossessed because of previous owner's debt

So no going out and renting a Roller while this is sorted????

You Killjoy.

[Sapphire]

Re: Car repossessed because of previous owner's debt

Just a small thought (yep you know me).

Was the finance with Barclays in the form of 'Vehicle Finance' or 'Personal Finance'. I'm thinking that if it was in the form of 'Vehicle Finance' then wouldn't it be an idea to report it to them and get them involved ? Would there be some form of clause in the paperwork to cover situations like this ?

Anyone got thoughts on this ? Go on shoot me down.