Purchased Car with Outstanding Logbook Loan. Help!

[bljones65]

Hi, I found this site whilst searching for help on Google and it seems that there have been quite a few cases with people in similar circumstances to myself so i'm hoping someone might have some advice for me.

 

My girlfriend purchased a car back in January 2013 from a garage in Birmingham (we live in Wales). We had a phone call on Thursday from Mobile Money Ltd informing her that they were the rightful owners of the car. They explained that a logbook loan had been taken out on the car by the previous owner (not the garage who have never been listed as the owner on the logbook) and that they were now pursuing the car as the previous owner had defaulted on the repayments.

 

We purchased the car in "good faith" from the garage and did not expect to be purchasing a vehicle with outstanding finance. We actually did a basic HPI check that revealed no outstanding finance on the car. (We used one of the text messaging services). Having purchased the car in cash she continued to use the car believing to be the rightful owner.

 

We have since tried to contact the garage by telephone but could not get through which lead us to believe that something wasn't right. We took a trip to Birmingham on Saturday to find that the garage had gone into liquidation and was no longer operating.

 

There is £2200 outstanding on the loan with Mobile Money Ltd so we're not prepared to settle given that we have spend £3000 on purchasing the car already and almost £500 on repairs with 4 new tyres, etc.

 

My girlfriend contacted citizens advice on Thursday but they didn't really help with anything. I have now spoken with them today and they have refered the matter to my local trading standards office but may take up to 5 days to respond.

 

I could really do with some help or advice from anyone who knows anything about these companies and how to challenge them.

[bljones65]

Update.

 

I have checked with HPI who have confirmed that Mobile Money Ltd registered their interest in the vehicle within 24hrs of the BOS being actioned.

I have also checked with the Royal Courts of Justice who have confirmed that the permission was granted by the High court within the 7 day time limit.

 

I noticed on the HPI check that there are 2 outstanding BOS on the car....is this allowed?

 

Please can anybody help???