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Jo C.
Jo C., Barrister
Category: Law
Satisfied Customers: 71131
Experience:  Over 5 years in practice
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I agreed to help a friend by taking out finance on a Land

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I agreed to help a friend by taking out finance on a Land Rover Range Rover acquired on 04/04/2016. It was agreed that my friend would pay the instalments on the £19,940.00 loan.
I would receive money and plus expenses for doing this.
My money was never paid and in recent weeks, I have been unable to contact Mr Massa. I am paying the monthly instalments but do not have possession of the car.
I now have a letter from the finance company stating they have the vehicle in safe custody after it had been sized by the police under 165A of the Road Traffic Act 1988. The finance company have also issued a default notice. Which sets out a time table of actions.
I would like some advice on the implications of this?
- What I should do?
- Can you help?
- how much will the work cost?
***** *****

Are you asking if you are liable?

Customer: replied 1 year ago.

You mean to the finance company?

Is there any reason you think you may not be?

Customer: replied 1 year ago.
if the car was sized due to no insurance (I don't know for sure that is the case) do i get prosecuted even though not in my possession. The finance company have called in the loan as the car should be in my possession. I was asking what are the key points so I can undrstand what a solicitor would deal with i.e. the police action and the finance action (letter attached if that helps)

Are you the registered keeper?

Customer: replied 1 year ago.
I am

It depends really what has happened.

If you are the registered keeper then you could be prosecuted for failing to keep the vehicle continuously insured but if he has been picked up for driving without insurance then you will not be prosecuted.

However, you are liable for the payments. There is no way around it. The loan is in your name. Your private arrangement with him is entirely different and gives you a claim against him but not a defence to the finance company’s claim against you I’m afraid.

Can I clarify anything for you?


Customer: replied 1 year ago.
thank you for this. As I have only limited knowledge of car finance, default orders, road traffic law and limited time I am hoping i can hand this to a processional to sort out - can you suggest people or service who could do this? There is a deadline of 7th June on the Finance.

I'm not sure what you mean?

Do you mean to avoid repossession? Surely that wouldn't help you?

Customer: replied 1 year ago.
if the car is repossesed what does that mean for me? are you saying it will help if it is repossessed? what do I do about the possible insurance issues?

Well, I presume he has the car not you?

Customer: replied 1 year ago.
no the letter says the finance company have the car stored so it doesn't get crushed by the police - I am not familiar with this aspect of the law or HP agreements - I don't want the car but must ensure that I don't suffer financial liabilities. I also need to know if I the owner, will be prosecuted for no insurance or any other offence.

Yes, but it was a car that he had not you?

Customer: replied 1 year ago.
I am the owner and keeper but the arrangement was that he was the main and only driver and maintained the vehicle. I only provided the finance for the purchase.

Ok. Then repossession helps you as they should deduct the value of the car from the debt.

If you were using it then that would be different.

Customer: replied 1 year ago.
or I could pay the finance off, keep the car and sell it myself?

Yes, they would probably agree to that.

Customer: replied 1 year ago.
The finance company claim I defaulted because the car was being driven by a disciualfid driver (i was unaware) and taken by the police who later passed on to the finance company for safe keeping. So I have to pay the loan off - I will do that later today. my final issue is when i reclaim the car, will the police confiscate it again. I also checked the insurance database and found the car no insurance. I can only assume that this was made viod when it was discovered that the driver disqualified. I have not had a notice about this from the DVLC shall I take out insurance now?

Well, that might be right. That would clearly be a default.

It doesn't impact upon the liability though.

Does your insurance cover it? I suppose not.

I'm happy to continue with this but please rate my answer.

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