have I broken the law? please help

[jill.m]

I'm in a bad position at the moment s I have credit card re payments to make, plus a car loan and a personal loan. I bought my car on finance but had to sell it. I sold it privately under the condition that I would pay of the finance. however I had to use this money for something else. Now I cant afford the repayments but what will happen if I don't make them?? will they reposess the car from the peolpe I sold it to? have a broken the law? please help as I don't know what to do!

[Adam Davies]

Hi
You need to find out if the car loan was a hire purchase agreement or a personal loan.
If it was a hire purchase agreement or lease then yes you have sold the vehicle when it does not belong to you and the finance company can claim it back.
If it was a personal loan then you have not done anything unlawful in selling the car on.
Regards

Andy Davie
IVA.co.uk Spokesperson

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp

[Storm]

Yes the vehicle will be recovered from the individual you sold it to.

[iva experts]

Welcome to the Forum Jill,

The best way forward is to go back to your agreement paperwork and double check that it is a higher purchase agreement. If it is a higher purchase agreement then the company can re-posess the car from the person you sold it to.

Best Regards. IVA Experts

[iva_squirrel]

Hi jill.m

If the car loan is a Hire Purchase i'm afraid they will claim it back.

Regards,
Michelle P.

[Oliver]

If the car is under a Hire Purchase agreement you have potentially broken the law by selling it.

Best Regards
Oliver

Thomas Charles and Co Ltd.
Experts in personal debt solutions.
Read customer feedback at: www.thomascharles.com/about_us.asp

[adam090376]

Dear Jill.M
Have you found out if it is a hire purchase argreement or a personal loan? Hope it is a loan.
Would the experts be able to tell us what would happen in this case should it be a HP agreement and the taken back. What laws have been broken and is there anything/advice on what Jill can do?

[MelanieGiles]

Jill has sold a vehicle which was not hers to sell, and therefore the purchaser has not gained good title to the asset - it still belongs to the finance company if it was sold on HP. There again, I do not understand why any private purchaser would not carry out a HPI check, which is relatively easy to do, before parting with cash from a private seller.

Under law, the vehicle can be repossessed by the finance company from the ultimate purchaser, leaving them with a claim against Jill which can be enforced in the same manner as any other debt.

Can I ask Jill what happened to the sale proceeds, and why were they not handed over the to HP company?

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[iva experts]

Melanie asks a good question about the money that was received from the car sale. If this car is on HP and the money received from the sale went to the HP company involved, then there would be less of an issue because the car would be paid off.

The problem is that the money was not used to pay off the remaining amount. The best thing for Jill to do is find out if this car is HP or if it was just a loan to buy a car.

Best Regards. IVA Experts