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JGM
JGM, Solicitor
Category: Law
Satisfied Customers: 10662
Experience:  30 years as a practising solicitor.
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If I brought a car and it had outstanding finance-and I didn't

Resolved Question:

If I brought a car and it had outstanding finance-and I didn't know and it was stolen from me but I only found out it was on finance after it was stolen because I receive a letter from the company that owned it am I liable for that finance left on the car plus I only had third party insurance and didn't claim for the theft am I still liable for the outstanding finance.
Submitted: 2 years ago.
Category: Law
Expert:  JGM replied 2 years ago.
Thank you for your question.
You are not liabile for the finance as you purchased it in good faith and didn't know about the finance.
Please leave a positive response so that I am credited for my time.
Customer: replied 2 years ago.
I have filled a court form with my answers disputing the claim the court have sent me back a form which says ( notice of proposed allocation to the small claims track to fill out form N180 what do you advise
Customer: replied 2 years ago.
I need more information did u get my reply last? Could you let me know you did receive thank you
Expert:  JGM replied 2 years ago.
Can you tell me what the basis of the court action is and who has taken the action against you?
You are protected under the Hire Purchase Act 1964 which provides in section 27:
"Protection of purchasers of motor vehicles.
(1)This section applies where a motor vehicle has been bailed or (in Scotland) hired under a hire-purchase agreement, or has been agreed to be sold under a conditional sale agreement, and, before the property in the vehicle has become vested in the debtor, he disposes of the vehicle to another person.
(2)Where the disposition referred to in subsection (1) above is to a private purchaser, and he is a purchaser of the motor vehicle in good faith without notice of the hire-purchase or conditional sale agreement (the “relevant agreement”) that disposition shall have effect as if the creditor’s title to the vehicle has been vested in the debtor immediately before that disposition.
(3)Where the person to whom the disposition referred to in subsection (1) above is made (the “original purchaser”) is a trade or finance purchaser, then if the person who is the first private purchaser of the motor vehicle after that disposition (the “first private purchaser”) is a purchaser of the vehicle in good faith without notice of the relevant agreement, the disposition of the vehicle to the first private purchaser shall have effect as if the title of the creditor to the vehicle had been vested in the debtor immediately before he disposed of it to the original purchaser.
(4)Where, in a case within subsection (3) above—
(a)the disposition by which the first private purchaser becomes a purchaser of the motor vehicle in good faith without notice of the relevant agreement is itself a bailment or hiring under a hire-purchase agreement, and
(b)the person who is the creditor in relation to that agreement disposes of the vehicle to the first private purchaser, or a person claiming under him, by transferring to him the property in the vehicle in pursuance of a provision in the agreement in that behalf,the disposition referred to in paragraph (b) above (whether or not the person to whom it is made is a purchaser in good faith without notice of the relevant agreement) shall as well as the disposition referred to in paragraph (a) above, have effect as mentioned in sub-section (3) above."
For that reason I don't know, until you tell me what their case is, why they are suing you.
Customer: replied 2 years ago.
I bought the car from a lady in March 2014.
Then it got stolen from me in May 2014
Then in October 2014 the finance company sent me a letter asking for outstanding finance.
Which I knew nothing about but they said I spoke to them in 2013 November and said I would return the car, and I told them that wasn't me but they insisted it was in the statement to the small claims.
Which I recieved January 2015 telling me that I took the car in November 2013 and spoke with them and I am the only one on the logbook but I wasn't the lady before me was on as previous owner.
The finance company are asking for 4500 of outstanding finance owed from the previous owner before the lady I bought it from who had died and sold it without there consent
Expert:  JGM replied 2 years ago.
What have you done since you received the court papers?
Customer: replied 2 years ago.
Disputed the claim form from the court
Now I have recieved a directions questionnaire saying it appears the case is suitable for allocation to small claims track as I have totally defended the whole amount
And to either mediate or agree or disagree with small claims track
What would you advise and how do I stand with being liable with outstanding finance monies
Expert:  JGM replied 2 years ago.
I would fill in the form for the small claims track as this may need evidence that you were unaware that the car was on finance and that you didn't offer the vehicle back.
As far as being liabile for the outstanding finance I have already cited the law that says you aren't.
Customer: replied 2 years ago.
Thank you I have already gave the court a summary stating I was unaware of outstanding finance and I never offered to give car back in 2013 etc
I now have the directions questionnaire which is asking if I'm agreeable to mediation via telephone to resolve the issue or go straight to small claims track
I don't wish to go to court so do you think mediation first is a good idea or if I fill in directions questionnaire and state my case do you think it will not proceed further?
Expert:  JGM replied 2 years ago.
I don't see where mediation will take you here as the issue is whether you offered to give the car back or not. That is a matter of evidence. In addition this is an all or nothing situation. There is no middle ground. Either you are entitled to keep the car or you are not.
Customer: replied 2 years ago.
With mediation can I try to put my point across that I had no knowledge of finance and never offered the car back
Plus would it favour me that I've tried to resolve the matter through mediation by giving information direct to the claimant as there case against me has no supporting evidence of contact before I owned vehicle and I had no contact of finance before I bought the vehicle
Expert:  JGM replied 2 years ago.
You can but mediation is generally used to find a compromise settlement and in my opinion you have nothing to offer.
JGM, Solicitor
Category: Law
Satisfied Customers: 10662
Experience: 30 years as a practising solicitor.
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