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Ash
Ash, Solicitor
Category: Law
Satisfied Customers: 10916
Experience:  Solicitor with 5+ years experience
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I had unregulated asset purchase agreement with Close Asset

Resolved Question:

I had unregulated asset purchase agreement with Close Asset Finance for £24,000 taken out on 22nd December 2009. In October 2010 the company was experiencing financial difficulties and missed a payment. Close Asset issued a repossession order and took the vehicle back. The vehicle was valued at £100,000 by Close Asset at the time the agreement was signed.
Close Asset sold the vehicle but no money was forwarded to either myself or the company. Close Asset have told me that once the vehicle is repossessed it becomes their property and anything over the outstanding finance is there money. Please advise if this is correct as it is my belief that any money above the amount owed should have been paid to myself / my company.
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 as this is not an ‘on demand’ live service, but rest assured I will be giving your question my immediate attention upon return. There is no need to wait here, you will get an email when I reply.


 

Alex Watts :

No that is not correct.

Alex Watts :

If the vehicle was yours you are taking finance out on the vehicle.

Alex Watts :

If there is a surplus it belongs to you.

Alex Watts :

Or the person who signed the finance agreement.

Alex Watts :

Close Asset should provide a full statement of account.

Alex Watts :

This will include the balance owing, any charges, the price at auction, auction fees etc.

Alex Watts :

Then you are due back the balance from this sale.

Alex Watts :

Can I clarify anything for you about this today please?

Customer:

Close Asset claim there is a clause in the contract which entitles them to all profits. Is this really enforcable if such a clause exsited?

Alex Watts :

This is something, if it does exist you could challenge as being unfair.

Alex Watts :

It can't be right, in effect they are entitled to double profit from this.

Alex Watts :

First the repayment and second the profit on any sale that you have paid.

Alex Watts :

Lets assume the finance was £24,000

Customer:

That is what I thought and have argued with them

Alex Watts :

And you had paid £23,000 and £1000 was owing

Alex Watts :

If they sold it for £20,000 they would have made £19,000 profit.

Alex Watts :

That can't be right

Customer:

What would you advise my next step to take?

Alex Watts :

First write and complaint.

Alex Watts :

Second take it to the financial Ombudsman

Alex Watts :

Their website is: www.financial-ombudsman.org.uk

Alex Watts :

And then finally sue to claim that the agreement is unfair.

Alex Watts :

Can I clarify anything else?

Customer:

Thank you very much for this advice. I am going to forward this on to Close Asset and see where it leads from there.

Alex Watts :

If this answers your question could I invite you leave feedback on my service which I hope has been excellent today, if you need more information or help then please click reply.


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