They have broken the law, and are liable to be sued by the hire purchase company - as the title in the vehicle does not pass until the final HP payment is made.
Melanie is right - however I have never known anyone to be sued - has anyone else?
With regards to Storm's comment, I am surprised that people would just hand over the keys to a car they had purchased. If it were me in that situation, I would not give in so easily and would rather get the police involved - assuming that I did not know where I stood legally.
Kind regards, Elizabeth Pywowarczuk, Insolvency Practitioner.
If you would like me to advise you about an IVA and if appropriate propose one for you, please visit my website at www.liberta.uk.com
I have heard that a lot of people give in to the finance companies as well - perhaps this is an area which deserves more publicity as consumers may be totally unaware. I have also seen a police officer lose his job for doing the same thing - so it is not a good idea.
Companies I work with will agressively litigate debtors if they sell the asset.
A significant percentage give up the asset without much fuss .... but then often these vehicles are sold well below value and a real bargin !! usually cash sales..... too good to be true.
The purchaser will struggle to sell or part ex the vehicle as it will have a HPI flag set to alert and the original debtor could well end up with an entry in CIFAS and Hunter.
Regards, David Mond, Insolvency Practitioner for over 46 years. Personal Insolvency Practitioner of the year 2012, Personal Insolvency Practitioner of the year finalist 2013 & 2014 awarded by Insolvency & Rescue Magazine and 2015 finalist for Personal Insolvency Firm of the Year.
CIFAS is a fraud prevention service with a number of members from banks, asset based lenders and insurance companies to name but a few members who work together to share information about fraud cases.
Hunter - standing for National Hunter - is a similar organisation.
Regards, David Mond, Insolvency Practitioner for over 46 years. Personal Insolvency Practitioner of the year 2012, Personal Insolvency Practitioner of the year finalist 2013 & 2014 awarded by Insolvency & Rescue Magazine and 2015 finalist for Personal Insolvency Firm of the Year.
