Part 2 in the case of the dealer who bought a car which was not HPI finance clear

Last year we reported on a case where our client was taken to court by a finance company. Our client had bought a car from a consumer and then sold it on without realising there was outstanding HP:

As the above link explains, we were able to fight the case on 2 technicalities and come to a deal with the finance company reducing the liability down from £12,000 to £5000. This still left our client out of pocket and so we helped our client bring a claim for that amount against the consumer who sold the car to him claiming it to be finance free. Our case was based on the fact that the consumer did not have title to the car (it was still owned by the finance company) and so he had created a breach under The Sale Of Goods Act 1979.

The consumer did not want to hand over any money and so we had to issue a court claim to get the matter resolved. This action resulted in a deal meaning that for the price of a Lawgistics membership and one court issue fee of £185, he was able to substantially reduce his initial potential loss of £12,000 to just £1000. If the matter had ended up in a hearing, our client would have probably clawed back the lot but they took a commercial decision to get it resolved early and put the matter to bed.  Job done.


Authors: Nona Bowkis

Published: 09 Mar 2017


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