When our members are sued by consumers for cars supplied via finance, a key element of their defence is that our member has no contract with the consumer claimant.
In essence, the dealer sells the car to a finance company, which then supplies it to the consumer in return for monthly repayments. The claimant and defendant each have a contract with the finance company but not with each other.
So when consumer K brought a legal claim against our member, it was no surprise that the judge ordered that the finance company be added as a second defendant to the claim.
However, the judge simply wrote, “The Finance Company to be added as a second Defendant”.
The court staff took that literally and so the second defendant was recorded as “The Finance Company”, which of course is not a legal entity.
The finance provider, a bank, contacted the court. It refused to discuss the case because it was not named as a party to proceedings.
The bank must now pay to make a formal application to the court to add itself as a second defendant, and then file a defence to explain why it believes it is not liable.
K, on the other hand, is staying very quiet… We will advise what happens in due course.
If you find yourself tangled in a similar finance dispute, our Lawgistics telephone helpline can guide you, so just give us a call.
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