can logbook loans take my car because of a loan that wasnt mine ?

[gobache]

i recently brought a cheap car for running around in .. a few weeks after posting the log book of i had a letter to say that the previous owner had a loan and used my car as colaterall they were going to take my car !! i was horrified a single mum working part time in a village who needed a car to take the old dears out ! i explained this and they told me they would take the car and he did a check and said it was only worth 350 quid...i said it will cost you more to recover the thing ! they said they needed to get something back and i was to make an offer they would consider it, they have agreed on 70 quid to be honest im so reluctant to pay them, can anyone help on where i stand legally thanks

[Buenchico]

Can you still contact the previous owner? If so, advise him that (by selling you the car without disclosing that it had been used to obtain a loan which had not been repaid) he committed an offence under Section 3 of the Fraud Act 2006. Further advise him that the maximum penalty for that offence is 10 years imprisonment and that, if he doesn't sort the matter out, you'll be hot-footing it to the local police station.

Chris

[gobache]

hi chris, sadly the car past through 3 people ... i was the first to post the log book of and the guy i brought it from is a friend he had no idea either .. shall i pay them the £70, the car is mine now so does that mean her debt is, up to the value of the car anyway, do i actually own the car, can they take it from me, i do have the log book and stuff.

[Buenchico]

I think we could do with the services of Barmaid (AB's resident barrister) here but my understanding of your position is that it's similar to if your car turned out to be stolen property. You have no title to it, since the person you obtained it from was not in a position to gift you that title. If you've been offered the chance to pay £70, rather than to lose the car, your best option would probably be to pay up. You can then, if you so choose, demand that the person you obtained the car from recompenses you for your loss. (They can then pass the debt back along the chain in the same way).

It also remains open to you to report the matter to the police, in the hope that a prosecution will result and that the court would order to offender to pay you compensation.

Chris

[wilkesneil]

if its the person on the previous owner part of the log book who took the loan out, i'd be paying them a visit and telling them they had 7 days to sort it out or i would be going to police and small claims court if they take the car.
this is why people use logbook loans, as there no paperwork saying the car has been used has collaterol. obviously if the car was only worth £350 it wouldn't be worth doing a hpi check (which is usually done on more expensive cars).

[gobache]

hi guys if i could find the girl i would i did try n facebook her lol and the electorial reg but no luck she seems to have dissapeared, i will pay up but i wont leave it at that, thankyou u so much for advice its helped me out lots glad i joined the site saved me a trip to the soliciter regards michelle

[Hopkirk]

Perhaps worth asking the Citizens Advice Bureau.

Personally I would not pay up, I would tell them to take a running jump.