Finance company clawbacks

legal_updates

It is not uncommon for finance agreements to include a clawback clause.

Author: Katie Fitzjohn
Published:
Reading time: 1 minute

This article is 1 year old.

Read our disclaimer keyboard_arrow_down

This website content is intended as a general guide to law as it applies to the motor trade. Lawgistics has taken every effort to ensure that the contents are as accurate and up to date as at the date of first publication.

The laws and opinions expressed within this website may be varied as the law develops. As such we cannot accept liability for or the consequence of, any change of law, or official guidelines since publication or any misuse of the information provided.

The opinions in this website are based upon the experience of the authors and it must be recognised that only the courts and recognised tribunals can interpret the law with authority.

Examples given within the website are based on the experience of the authors and centre upon issues that commonly give rise to disputes. Each situation in practice will be different and may comprise several points commented upon.

If you have any doubt about the correct legal position you should seek further legal advice from Lawgistics or a suitably qualified solicitor. We cannot accept liability for your failure to take professional advice where it should reasonably be sought by a prudent person.

All characters are fictitious and should not be taken as referring to any person living or dead.

Use of this website shall be considered acceptance of the terms of the disclaimer presented above.

Given the current economic climate it is no surprise that finance companies and the like are attempting to clawback money allegedly owed.

Indeed, Lawgistics have recently seen an influx of cases relating to finance companies attempting to clawback monies owed under finance agreements and transactions, some backdating years. 

It is not uncommon for finance agreements to include a clawback clause, stipulating that money paid over must be returned in special circumstances or events and within a specified time limit. The contract will need to be closely scrutinised to determine whether there is legal ground to recover any amount claimed. 

If you are a Lawgistics member and have any questions please contact us to talk through the process and if you are not yet a member, if you sign up to get support on this process you will also get access to all year round phone and telephone casework on consumer, employment and any other motor trade related legal issues.  

Katie Fitzjohn

Legal Advisor

Read more by this author

Getting in touch

You can contact us via the form or you can call us on 01480 455500.