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Statute Barred HP Debt with Car Still in Possession

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Statute Barred HP Debt with Car Still in Possession

Postby notguilty » Sat May 23, 2015 1:09 pm

A "friend" acquired a car on HP many years ago and for one reason or another eventually stopped paying the HP instalments.

However, they made enough payments (50% I think?) to trigger the clause in the agreement that the car could
only be repossessed by a Court Order.

I am aware of BMW Financial Services v Hart ([2012] EWCA Civ 1959 , so for the avoidance of doubt the
agreement was terminated and default notices etc issued over 7 years ago.

No acknowledgement has been made in over 7 years, the HP debt/default has dropped off the credit file and into the abyss.

My friend still has the car though and the HP company never applied to the Court to attempt to recover it nor has it or it's agents made any contact for years.

So what is the status of this car now? Do the HP company still technically own this car but have no legal method available to recover it? If that is true then does that stop the HP debtor from ever legally selling the car on?

Could the HP debtor claim the car is abandoned property and they are now the owner seeing as the HP company never applied for possession?
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Re: Statute Barred HP Debt with Car Still in Possession

Postby atticus » Sat May 23, 2015 1:35 pm

I note that the word "friend" appears in quotation marks.

You should take care not to acknowledge any debt.

The fact remains that the car is not your property. You may not lawfully sell what is not yours to sell.
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Re: Statute Barred HP Debt with Car Still in Possession

Postby notguilty » Sat May 23, 2015 2:18 pm

atticus wrote:I note that the word "friend" appears in quotation marks.

You should take care not to acknowledge any debt.

The fact remains that the car is not your property. You may not lawfully sell what is not yours to sell.


Wise advice.

I wonder if the HP Company could take it if the HP Debtor died, without having to bother the Court.
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Re: Statute Barred HP Debt with Car Still in Possession

Postby atticus » Sat May 23, 2015 2:26 pm

Will they still be interested in this antique?
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Re: Statute Barred HP Debt with Car Still in Possession

Postby notguilty » Sat May 23, 2015 2:39 pm

atticus wrote:Will they still be interested in this antique?


Low mileage German made car and worth over 10k according to online valuations.

What is ownership anyway? The right for someone to legally possess/use an object?

If the HP company cannot legally possess or use the object how could they be deemed the owner?
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Re: Statute Barred HP Debt with Car Still in Possession

Postby Slartibartfast » Sat May 23, 2015 3:14 pm

notguilty wrote:What is ownership anyway? The right for someone to legally possess/use an object?

If the HP company cannot legally possess or use the object how could they be deemed the owner?


Strange statement. Lots of companies own vehicles - sometimes to use, sometimes as stock to trade.
"Judicial tergiversation is not to be encouraged"
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Re: Statute Barred HP Debt with Car Still in Possession

Postby notguilty » Sat May 23, 2015 3:16 pm

Slartibartfast wrote:
notguilty wrote:What is ownership anyway? The right for someone to legally possess/use an object?

If the HP company cannot legally possess or use the object how could they be deemed the owner?


Strange statement. Lots of companies own vehicles - sometimes to use, sometimes as stock to trade.


Yes but in this case the HP company can't legally possess or use it without a Court order that can't be given.
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Re: Statute Barred HP Debt with Car Still in Possession

Postby atticus » Sat May 23, 2015 4:46 pm

They own it. They have the legal title.

They would posess it if you gave them the car and keys, for example, and there may be other ways.

I don't suppose this situation is helping your credit record, either.
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Re: Statute Barred HP Debt with Car Still in Possession

Postby notguilty » Sat May 23, 2015 5:53 pm

atticus wrote:They own it. They have the legal title.

They would posess it if you gave them the car and keys, for example, and there may be other ways.

I don't suppose this situation is helping your credit record, either.


As stated in the original post:

No acknowledgement has been made in over 7 years, the HP debt/default has dropped off the credit file and into the abyss.


It dropped off the credit file after 6 years from default.
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Re: Statute Barred HP Debt with Car Still in Possession

Postby atticus » Sat May 23, 2015 6:24 pm

It can be put back there.

I suspect this HP co wrote of your debt some while back.
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