Successful HPI claim for client who purchased a vehicle with finance outstanding

AWH Solicitor Karl Kalina successfully represented the claimant Mr. P in his case against Blue Motor Finance to recover damages incurred from purchasing a car with outstanding finance on it.

Claimant who Bought a Car with Outstanding Finance

What was the case?

The claimant purchased an Audi Q7 from a private seller Mr V for £14,000.00. He paid part cash, part bank transfer and part part-exchange of the claimant’s BMW 730.

Then two months after the purchase, the car finance company sent a letter to the claimant stating that the Audi Q7 was actually the property of the defendant, Blue Motor Finance, as it was subject to a finance agreement with the seller Mr V.

They stated Mr V had no right to sell the Q7 without paying the finance agreement in full before selling it on to our claimant.

(The finance company is always the owner of the vehicle until the full amount of the existing finance has been discharged)

Claimant's response to finding out his car has outstanding finance

The claimant Mr. P had replied to the car finance company to explain the circumstances of the purchase. However, Blue Motor Finance reacted by putting a wheel clamp on the Audi Q7 while it was outside the claimant’s house and then informed the police of the potential theft of that Q7.

The police advised the claimant to allow the defendant to take possession of the Q7, so then Mr. P gave the vehicle over.

The claimant then contacted AWH Solicitors after seeing an article on our website about another similar case we successfully acted for.

After looking into the details of the claim, we knew that the claimant had a strong case to rely on the consumer rights laws to protect innocent purchasers and seek either return of the Q7 or payment of funds spent on the Q7.

The car finance company refused payment for damages

The defendants would not return the Q7 and in fact already sold the vehicle on to another buyer. They would not return any payments to Mr. P for damages either, so county court proceedings were issued in November 2017.

The defendant initially defended the case and refused to accept Mr. P’s case, but after negotiations we secured the defendant’s payment of damages in May 2018.

Proving the claimants consumer rights

We were able to prove that the claimant attracted the protection from Section 27 of the Hire Purchase Act 1964.

This consumer rights law states that if the purchaser of a car acted in good faith, i.e without notice of the hire purchase agreement/car finance agreement, then the purchaser obtains good title to the car.

In this case Mr P did not do a HPI check prior to the purchase of the vehicle and he was totally unaware of there being any outstanding finance on the Q7 car.

How AWH Solicitors can help you

Here at AWH Solicitors we have handled many hire-purchase claims and we continue to hold a 100 percent success rate on these types of claims.

If you are in a similar situation as Mr P and you have recently purchased a vehicle that turns out to have outstanding finance on it you will need to take action. Failure to act could result in you losing the car and the payment you made to the seller.

Are you wondering, I bought a car with outstanding finance hp what are my rights?

Contact us on 0800 999 2220 or use the contact form today.

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