Purchased car has outstanding finance - in England

[pcdave23]

Hi All,

 

This seems to be a bit of a complex one to me but hoping you guys can clear up what steps to take next if any.

 

Purchased a BMW from a private seller 2 months ago also in Scotland for market value at £5600 and paid cash. The ad was on auto trader and as such I did a mobile car check to make sure it was not stolen or writen off etc.

 

The seller had owned the car for over 3 years after purchasing it from someone down south in England near Carlisle in I believe 2011 from documentation. It was owned by that person in Carlile for what appears to be just under 2 years.

 

Today I received a letter from a Company called Billing Finance Ltd stating.

 

"Dear Sir

 

BMW Registration *My REG* ("The Vehicle")

 

We are the owners of the Vehicle, which is subject to a hire purchase agreement. The Finance outstanding on the Vehicle has not been settled.

 

It has come to our attention that you have recently been registered as the the keeper of the vehicle on June 2014.

 

In order that we can fully review our position in respect of the Vehicle, I enclose a new keeper questionnaire. Please complete the questionnaire and return it to us together with proof of your purchase of the vehicle within 7 days of the date of this letter, failing which the Vehicle will be recovered without further notice.

 

In the meantime whilst we conduct further enquiries, we have the title to the Vehicle and all of our rights remain expressly reserved. You must not dispose of the vehicle and you must keep it safe and insured and within your possession. If you dispose of the Vehicle at this stage then you may be liable to us for conversion. "

 

It then has several pages asking for basically all my personal details such as.

 

My name and address, my employers name and address, Payslips, bank slips, All the purchase details of the vehicle, if I sold my other vehicle to pay for it who did I sell it to and how much and that persons name and address and proof of sale. If I used finance to pay for it who from and copies of agreements.

 

Now what gets me is that I then done a HPi check costing 20 quid and it does indeed show Finance as Below.

 

Outstanding finance

Recorded against VRM and VIN

Description BMW

Date /2008 - Full date here

Finance house BILLING FINANCE LTD

Finance house telephone 01604 402204

Agreement reference ******** - Agreement number was here

Agreement type Hire Purchase

 

The lender owns the vehicle until the loan is fully repaid, including the final 'Option to Purchase' fee.

 

So I phoned the previously seller he was very helpful and claimed he done a HPI check when he bought it and will send this on Wednesday as he's on Holiday (we shall see) but he has not heard a peep from them in 3 years and new nothing about it. I do want to believe him and he has poured thousands over the 3 years to keep the car running as its not a cheap car.

 

So what do I do now. The letter was not sent recorded. Can they legally just come up into Scotland to someone who is the 3rd or 4th owner of the car since the finance and just take it? Will I be liable for the finance? OR do I try and take the person I bought it from to court?

 

Really confused on what to do and not sure if I should contact the finance company they have a really bad reputation from a google search.

 

HELP

[dx100uk]

bottom line is NO without a court order I believe.

 

I've got to admit

though not with billing finance

 

I sort of had the same issue about 5yrs ago

 

2 owners before me had finance on it.

 

got sold down the line

 

4yrs later, just after I bought it

 

I got a similar letter from cyldesdale.

 

I phoned them up and asked whatthis was all about

 

spoke to a very nice lady

that outlined the issues

 

as this was HP, she confirmed there was little they could do about

was not after 'me' nor the vehicle

despite what the letter implied

and that they couldn't take it anyhow as it was HP agreement [no bill of sale nor conditional sale involved]'

 

I gave her the info she wished

[i e where/whom did I et it from

 

3 weeks later got a nice letter stating

thanking me for my help

stating they have no further questions and the vehicle was legally mine.

 

funny thing was

 

we scrapped it 18mts later.

 

lo!! another letter from Clydesdale

same MO

 

luckily I got back to the same woman

 

she said these are auto generated following a DVLA alert

by the finance system everytime a vehicle they have n interest in

has a DVLA update

[pcdave23]

Thanks, I was also under the impression as HP is not guaranteed on the car like a logbook loan

and that when you buy a car in Scotland its good title as long as market value and your not working with the seller.

 

I also looked up online and it said about having to get a court order for them to come

and randomly steal it from me.

 

Just worried about it and not sure if I should ignore it in case

 

its auto generated like yours or call this company who have a very bad reputation.

[dx100uk]

pers i'd front them

 

they'll never get a court order for repo.

 

however, what conerns me

and I know its 'wrong'

 

that line in their letter that says:

 

we have the title to the Vehicle and all of our rights remain expressly reserved

we will recover the vehicle.

they should not be saying either of those.

 

if they don't play ball, then me thinks that is reportable to the relevant authority

[pcdave23]

Who exactly would I go to if they do decide to "steal" the car without a court order?

 

I intend to phone them when they are open tomorrow and let them know that I am in the owner

 

I bought it and in Scotland have good title and that if they want to claim it back I will be happy to go to court while they fight for a possession order.

[dx100uk]

you would goto the police and report it as theft!

 

dx

[pcdave23]

Does anyone have a template letter I can send to them with all the legalities pointed out about I bought it with good title and here is all the sellers info but should you wish to take back the car a court order is require under scottish law etc? If not im thinking I better visit a solicitor this week

[dx100uk]

pers i'd ring and talk to them.

 

if the call does not go the way you want it you simply end it

 

and then we'll deal with it.

 

they may simply be after some simple information

and sent out the generic letter.

 

theres no harm in reminding them they have no rights to 'snach' the car under the HP / CCa rules.

 

dx

[National Debtline]

Hello there,

 

There is a little further information (via the CAB) that could help you too. If you purchased the vehicle in good faith, you may be able to argue that you have 'good title' to the vehicle. Further info here: http://www.adviceguide.org.uk/scotland/consumer_s/consumer_cars_and_other_vehicles_e/consumer_problems_with_the_car_you_bought_e/consumer_the_vehicle_you_bought_doesnt_match_its_description_e/the_vehicle_is_still_on_hire_purchase.htm

 

Very best wishes,

 

David @ National Debtline.