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Buachaill, Barrister
Category: Law
Satisfied Customers: 10955
Experience:  Barrister 17 years experience
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We have bill of sale contract signed with customer regarding

Customer Question

We have bill of sale contract signed with customer regarding a vehicle. After paying off 40% of the loan customer ignored all reminder letters for 2 months and vehicle was repossessed with Police notice but no court order (as wasn't aware we needed one). Now we suddenly received a single weekly payment into our account from this customer. Are we legally entitled to keep vehicle? is it too late to get court order?
Submitted: 4 years ago.
Category: Law
Expert:  Buachaill replied 4 years ago.
1. At the outset as you now seem to be aware, once one third of the payments have been made, you need a court order in order to repossess the vehicle. Accordingly, your seizure of the vehicle is unlawful and you will in law have to pay damages for keeping the customer out of his vehicle. Accordingly, you have two choices. Firstly, as the customer has made a further payment on the account, you can return the vehicle and treat the agreement as continuing to be operative, as the customer is now making payments. Here some allowance will have to be made by you for the unlawful taking of the vehicle. The second option is that you return the vehicle but immediately seek a court order for its repossession thereby treating the contract as being at an end. Here if the customer shows in court that he is now making payments on the vehicle, the court is not likely to grant an order for repossession despite the earlier failure to do so, given the fact you unlawfully repossessed the vehicle. However, you are not entitled to keep the vehicle as you don't have good title to it. Additionally, it is not too late to repossess the vehicle but it must be done lawfully.
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