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Ash
Ash, Solicitor
Category: Law
Satisfied Customers: 10916
Experience:  Solicitor with 5+ years experience
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Hi there. I have two hopefully quick questions regarding my

Resolved Question:

Hi there. I have two hopefully quick questions regarding my rights surrounding a Vehicle Hire Purchase Agreement. It will probably involve the Credit Consumer Act in some way. To cut a long story short I bought a car on finance a few years ago, the car had endless problems and I also discovered it was an imported vehicle, not a UK one (therefore worth thousands of pounds less than I paid). A row involving the supplier and the finance company soon took place and the car was returned. The supplier wanted to take me to court but changed their mind when I proved the car was imported. That process took so long the finance company repossessed the car. Not an ideal situation and I possibly didn't help myself. That said, MY TWO QUESTIONS ARE (1) Can the finance company still try to get me to pay all the outstanding finance and charges? There is no rebate of interest mentioned nor have they made any reduction for selling the car they repossessed. They've had the car back, sold it and also had a deposit from me so I could argue they have comfortably had all their money back. (2) The fact I was sold a UK vehicle by the supplier and it transpired to be an import, worth likely half the value I must surely have grounds to use this reduction in value to my advantage in negotiating a fair conclusion to this matter? Many thanks, Jon
Submitted: 3 years ago.
Category: Law
Expert:  Ash replied 3 years ago.

Alex Watts :

Hello my name is XXXXX XXXXX I will help you with this. Please note that I am a working Solicitor and may be on and offline as I have to attend Court and meet with clients, even at weekends. As such you may not get an instant response when you reply, but rest assured I will be giving your question my immediate attention upon return You do not need to wait here as you will get an email when I reply.


 

Alex Watts :

When was the last payment date please?

Customer:

Hi Alex. Approximately September 2011.

Alex Watts :

Ok:

Alex Watts :

1) Yes they could TRY and issue a claim or get you to pay

Alex Watts :

They have 6 years from the date of last payment under the Limitation Act 1980 to try and bring a claim

Alex Watts :

But given what you have said I am sure any claim would not be successful, but they have 6 years

Alex Watts :

In any event you would be able to sue them and the finance company as the finance company is jointly liable under section 75 of the Consumer Credit Act for breaches by the supplier

Alex Watts :

2) Yes the fact you were sold a UK vehicle but an import is breach of contract by misrepresntation

Alex Watts :

Had you know the true origin you would have not likely purchased it I assume

Alex Watts :

That being the case the remedy is that any debt is written off

Alex Watts :

If they knew that the item was imported and told you so, then this could be considered fraudulent misrepresentation and in fact you could sue them

Alex Watts :

But under the circumstances Jon I am sure they want to maintain the status quo

Customer:

Thank you Alex, that is very helpful. Referring back to my original questions - Am I right in assuming that if they have had the car back and sold it, they have therefore recouped a significant sum of money and that should be shown in their calculations of what they feel is owed?

Alex Watts :

Yes indeed that is correct.

Alex Watts :

You would be due a rebate and the value back to the account

Customer:

Excellent. Lastly, what about the interest charges? Effectively they've had the vast majority of their money back by way of my deposit and payments made in the early months and the sale of the vehicle. Can they charge me for outstanding payments and/or interest when they've recouped so much?

Alex Watts :

Well they can try but of course you would have a claim against them for breach of contract by misrepresentation

Alex Watts :

Therefore they are unlikely to try

Alex Watts :

Any rebate / charges would be governed by the consumer credit act

Alex Watts :

There is a formula

Alex Watts :

Can I clarify anything else?

Customer:

No thank you, XXXXX XXXXX been very helpful. I'll leave feedback so you can get your fee. Many thanks again. Jon

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