How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Ash Your Own Question
Ash, Solicitor
Category: Law
Satisfied Customers: 10916
Experience:  Solicitor with 5+ years experience
Type Your Law Question Here...
Ash is online now

I run a small taxi firm and bought a new Vauxhall car on HP

Resolved Question:

I run a small taxi firm and bought a new Vauxhall car on HP in 2011.iIt was covered by a 100,000 mile warranty which was just as well as during this period it spent over 20 weeks off the road having constant repairs being carried out by reason of a faulty cooling system.
About 1000 miles out of warranty the engine blew up (again) and for the second time a complete engine replacement was diagnosed. I ceased payments to the HP Company as I could not afford to continue them as the car was not bringing in any revenue.the HP company are now suing me for the remaining sums due under the Agreement but I have obtained two expert engineer's reports confirming that there was an inherent flaw in the cooling system dating back to the date of purchase.
How should I proceed.
I recognise that as I am a business purchaser and not a consumer I cannot rely on protection under the Sale of Goods Acts.
Can I counter claim for the return of all payments made under the Agreement?
Submitted: 3 years ago.
Category: Law
Expert:  Ash replied 3 years ago.
Alex Watts :

Hello my name is ***** ***** I will help you with this.

Alex Watts :

For now please let me know what % you have paid for the HP? Was it a consumer credit act HP application?

Customer: M
Customer: Interest rate is 12%,have paid £14,000 with £10,000 remaining.yes it is an Agreement regulated by the Consumer Credit Act 1974
Alex Watts :

Ok - but what % of the repayments have you made, ie more than half?

Customer: Yes
Alex Watts :

Have they issued proceedings yet?

Customer: Yes,they have obtained an Order for Return of the Vehicle but have not exercised it yet with a Hearing for payment of monies due to be heard on the 11th November
Alex Watts :

Ok - were you invited to attend Court for the Return of Vehicle please?

Customer: Yes I was advised by a lawyer on a pro bono basis that under the terms of the agreement I had no title to it. Until all payments had been made. The vehicle in its present state is valued at less than £1,000
Alex Watts :

Ok - what you need to do then is issue proceedings NOW against the Company using form N1

Alex Watts :

Alex Watts :

You then need to apply to the court to consolidate proceedings.

Alex Watts :

But yes you can sue for breach of contract if you can show that the defects pre-dated the expiry of the warranty

Alex Watts :

Can I clarify anything for you about this today please?

Customer: The comment their Solicitor made in Court regarding the defects in the cooling system was that this was a matter between me and the dealer supplying the vehicle but surely as the Finance Company have title to the vehicle this is their problem not mine,pls confirm .
Alex Watts :

Well it is a matter for defects that they WOULD be liable under Section 75 of the consumer credit act

Customer: Even though I am a business user.
Alex Watts :

Yes, if it is regulated by the Consumer Credit Act as you said it is

Customer: That is all most helpful,it seems I would be wise to employ a Solicitor.
Alex Watts :

To prepare the claim for you yes.

Alex Watts :

Can I clarify anything for you about this today please?

Customer: If I need further help will I be referred to you?
Alex Watts :

You can post a new question and start it: For Alex W

Alex Watts :

Then it comes to me

Alex Watts :

Does that help?

Customer: Thks I'll probably be in touch!! Good night
Alex Watts :


Alex Watts :

If I could ask you to rate my answer before you go today - the button should be at the bottom of the screen

Alex Watts :

If I can help further please click reply

Ash and other Law Specialists are ready to help you