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UKSolicitorJA
UKSolicitorJA, Solicitor
Category: Law
Satisfied Customers: 4312
Experience:  English solicitor with over 12 years experience
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Does a finance company require a court order to reposses equipment

Customer Question

Does a finance company require a court order to reposses equipment from a sole trader after the lease has been terminated although lease payments have been made in full but payments were in arrears?
Submitted: 3 years ago.
Category: Law
Expert:  UKSolicitorJA replied 3 years ago.
-Could you explain your situation a little more?
Customer: replied 3 years ago.


I took delivery of dental equipment ie chair and delivery unit (value about £16,000) in July 2008. Because of incomplete supply the lease payments commenced in November 2008 over a five year term. I fell into arrears but continued the payments but was advised that the agreement was terminated. The last payment including penalties was made in May and now the finance company are asking me to make an offer. Usually with these agreements the title of the equipment goes to the broker and they pass this on to the lessee for a nominal sum, usually £150. I have done this recently with the same broker and finance company. Their legal department say that they have been offered £2000 for the equipment but I find this hard to believe as the equipment has to be broken down, transported, stored and the reassembled. I made an offer of £150 and then increased to £250 after rejection. Now I have been told that if I do not make an offer 'in line' with £2000 by close of business today then there agents will be instructed to collect. I need the equipment and their terms appear to be unfair. Can I prervent collection as I cannot afford new Equipment.

Expert:  UKSolicitorJA replied 3 years ago.
I assume that they have the right to retain possession of your equipment and sell it under the terms of the original lease agreement you entered into in which case I am afraid you would need to go to court for an order giving your equipment back to you at an agreed figure determined by the court as reasonable.

If they have received an offer of £2000, you may ask them to show you evidence of it as it could be true in which case I am afraid there is not much you can do other than to match it.

Sadly, if you are unable to amicably settle this amicably, the final option would be to go to court and you would incur court and lawyer fees which may make this not worthwhile. You could try and source alternative equipment if possible.

May I help further?
Customer: replied 3 years ago.

They will not provide proof of the offer. Can I put my case before the small claims court personally without a lawyer. If so, which court form do i need?

Expert:  UKSolicitorJA replied 3 years ago.
Yes, you may go to court without a lawyer. The claim form is N1

All the best please leave feedback
Customer: replied 3 years ago.

Thank you for your replies.


I have made a final offer and if this is not acceptable, how can I prevent the 'agents' from taking possession while I am applying to the court, apart from refusal of entry and physical restraint? Returning to my original question; do they need a court order and if so, do I receive notice of this and how do I respond?

Expert:  UKSolicitorJA replied 3 years ago.
They may be entitled to take possession of your equipment without a court order if the lease or agreement permits them to do so.

However, possession is nine tenths of the law, so if they are unable to physically take possession of the equipment, then they would need to seek help from the court.

If they file an application in court, you will be notified of it and you may file a defence.

All the best
UKSolicitorJA and other Law Specialists are ready to help you
Customer: replied 3 years ago.


Thank you.

Expert:  UKSolicitorJA replied 3 years ago.
Welcome, please leave feedback
Customer: replied 3 years ago.

I made my final offer of £500 to the finance company which was rejected and I said if this was the case, then I would commence legal proceedings.


They have now asked on what grounds I would be looking at to issue proceedings. What is the appropriate answer?


I have made a request under the data protection act for all information they have on me including another agreement that was terminated without any issues for £150. They said that they would comply within the 40 days.


 


What would also be the particulars of claim on the N1 form?

Expert:  UKSolicitorJA replied 3 years ago.
Please open a new question with your further queries.
Customer: replied 3 years ago.

Please take the above as a new question then because I am unclear how to make a new one and it is a continuation of the original question.

Expert:  UKSolicitorJA replied 3 years ago.
Thank you.

The only grounds of claim that I am able to think of are that your payments are up to date under the lease agreement albeit the payments were delayed and they acted unreasonably in terminating the lease agreement. You may also try and argue that by accepting the delayed payments from you, you were under the impression that the agreement would not be terminated and the termination will result in substantial loss to you including loss of earnings and disruption of business.

Hope this helps