The current law on repossessions is particularly vague with individuals not being provided with an appropriate legal basis to adequately prepare their case, should the circumstance ever arise. Many do not have a basic understanding of their legal rights in this area and this can often lead to finance companies and other high street lenders repossessing vehicles without following the prescribed steps. As a car is, in numerous cases, the second largest purchase an individual will tend to make therefore, it is vitally important that you are of aware of your rights so that a finance company does not take advantage.
One restriction that the law imposes on finance companies is the requirement of a court order before any repossession is carried out. In order for this to apply, a third of the total price of the vehicle must already have been paid for by the individual in question and this was through a Consumer Credit Act regulated hire purchase agreement or conditional sale. In these instances, the vehicle would be classed as protected and the lender would be under an obligation to obtain a court order before any further action is taken.
In circumstances where no adequate court order has been provided, you may have the right to a valid compensation claim. In addition, you may also have the right to be released from the liability of the hire purchase agreement, which would, in turn, cancel off your existing debt.
If you are in a situation where less than one third of the total value has been paid, this legal security may unfortunately not be available to you. Legal advice is still recommended however as any procedural inaccuracies on behalf of the lender can still result in compensation for unlawful car repossession.
Please note, we do not provide help on this matter and provide this article as a general guide on the topic.