We recently defended a motor trader against a finance company that disputed the validity of the authority to release a vehicle, and the finance agreement as a whole.
In this case, the customer claimed they were coerced by an ex-partner into purchasing a vehicle on finance, and sought to cancel the agreement before the vehicle was collected. While there was no evidence to support this, the finance company requested that the trader return the funds previously advanced. Before any refund was processed, the customer changed their mind and asked to collect the vehicle.
Our member contacted the finance company to clarify whether the agreement had been unwound or could proceed, and whether the vehicle could be released. The finance company confirmed the deal was not yet unwound and that the customer could proceed to collect the vehicle. The customer subsequently collected the vehicle, accompanied by their husband.
Several weeks later, the finance company contacted our member, demanding full payment for the vehicle, despite having made no attempt to recover it from the customer in the meantime. They alleged that the trader lacked authority to release the vehicle and questioned both the validity of the documentation provided to the customer and the enforceability of the agreement, citing alleged coercion by the customer’s ex-partner.
The court found that our member had made reasonable enquiries before releasing the vehicle, and the claim was dismissed.
Although this claim was successfully defended, we strongly recommend that all agreements, settlements, and confirmations are documented in writing, including explicit written authority to release a vehicle. If you have faced a similar issue, why not call our legal team at Lawgistics for guidance?
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