Fiinance company seized car due to no insurance
Discussion
Will try and summarise as quickly as possible.
I am the legal owner and registered keeper of a car. The car has only just been purchased on finance. I maintain a fully comprehensive policy on the car.
My son drove the car on Thursday (with permission) as it required some work doing at a specialist (5 miles from his house, hence him delivering it for me), this was known about when purchasing. He has a traders policy, which he told me covered him to drive any car.
He was random stopped by the police on Thursday (young lad [26], exotic car) and it turns out his licence was revoked because he did not send it to the DVLA to have 3 points added 12 months ago: he failed to notify the DVLA of a change of address also. Hence the police siezed the car and will be reporting him for various offences.
I went the next day with my documents to the station, but they informed me they had notified the fiance company of the situation and had released the car to the finance company.
I have not spoken to them yet, but I wondered what I should expect tomorrow and any advice on how to play it. I am actually very distraught about the whole situation, I assume if they dispose of it I will lose my deposit (£7,000) and probably also have a huge shortfall to pay.
Are they likely to return it to me, with just the seizure fees to pay?
I am the legal owner and registered keeper of a car. The car has only just been purchased on finance. I maintain a fully comprehensive policy on the car.
My son drove the car on Thursday (with permission) as it required some work doing at a specialist (5 miles from his house, hence him delivering it for me), this was known about when purchasing. He has a traders policy, which he told me covered him to drive any car.
He was random stopped by the police on Thursday (young lad [26], exotic car) and it turns out his licence was revoked because he did not send it to the DVLA to have 3 points added 12 months ago: he failed to notify the DVLA of a change of address also. Hence the police siezed the car and will be reporting him for various offences.
I went the next day with my documents to the station, but they informed me they had notified the fiance company of the situation and had released the car to the finance company.
I have not spoken to them yet, but I wondered what I should expect tomorrow and any advice on how to play it. I am actually very distraught about the whole situation, I assume if they dispose of it I will lose my deposit (£7,000) and probably also have a huge shortfall to pay.
Are they likely to return it to me, with just the seizure fees to pay?
It's GMP. They thouroughly check *everything*, apparantly.
http://www.gmp.police.uk/mainsite/pages/7dc2c35ae7...
http://www.gmp.police.uk/mainsite/pages/7dc2c35ae7...
Defcon5 said:
So somewhere there is a database of cars that have finance on them?
Yes, its called the HPI register.I'm an accountant for a finance company (admittedly one that finances LGV's but the principle is the same) and we get a call everytime a vehicle is seized by the police because it is our property.
To the OP - I would expect that as part of your finance agreement you should ensure the vehicle is insured fully comp at all times. I would hope that the finance company see sense and release the vehicle back to you but they could deem that you have broken the terms of the finance agreement and terminate the agreement immediately. I guess it depends on how ruthless (and usually how big - computer says no syndrome!) the finance Co. are. Not what you wanted to hear I expect, sorry
.dabooga79 said:
Defcon5 said:
So somewhere there is a database of cars that have finance on them?
Yes, its called the HPI register.I'm an accountant for a finance company (admittedly one that finances LGV's but the principle is the same) and we get a call everytime a vehicle is seized by the police because it is our property.
To the OP - I would expect that as part of your finance agreement you should ensure the vehicle is insured fully comp at all times. I would hope that the finance company see sense and release the vehicle back to you but they could deem that you have broken the terms of the finance agreement and terminate the agreement immediately. I guess it depends on how ruthless (and usually how big - computer says no syndrome!) the finance Co. are. Not what you wanted to hear I expect, sorry
.As I mentioned we are purely a corporate finance company and provide finance on LGV's. We have definately been called by the police when vehicles have been impounded, I have an ongoing case with a couple of units at the moment. It was the police who called to inform us of the seizure and to inform us that they had been released to VOSA to carry out inspections etc. I don't know whether the involvement of VOSA changes things but that's my experience. The vehicles were seized in South Lincs. if thats any help.
As a side note the policeman I spoke to couldn't have been any more helpful & did offer assistance in locating any units we were currently missing that may have been in mid/south Lincs. This does go against the grain for most police forces we have contacted in the past to register assets as stolen due to non payment as we keep being told it's civil and the police won't get involved.
As a side note the policeman I spoke to couldn't have been any more helpful & did offer assistance in locating any units we were currently missing that may have been in mid/south Lincs. This does go against the grain for most police forces we have contacted in the past to register assets as stolen due to non payment as we keep being told it's civil and the police won't get involved.
I would hope they would see sense & let you have the vehicle back with a slap on the wrist but it depends on the individual company's policy & how strict they are towards it. I assume your policy doesn't cover other drivers? Although I don't know where you would stand with regards a driver with no license due to his own admin errors.
You will only find out once you call the finance company
Sorry I can't be any more use & fingers crossed you get the answer you want!
You will only find out once you call the finance company
Sorry I can't be any more use & fingers crossed you get the answer you want!
Seraphim said:
My question is, if the finance agreement T&Cs have been breached, would they rather dispose of the asset and chase me for the shortfall, or give it back once I have proved it is insured?
Check the T&Cs, it would say there.One thing that struck me - even if your son't licence was correct, would the trade policy actually cover him to drive the vehicle? I think some (most?) only cover vehicles being driven as a necessary part of the business, and driving a family member's car as a favour would probably not be covered!
What a nightmare!
I'd guess (I worked for Lombard Finance for 9 years) they'll return your Car to you on proof of insurance.
Expect many interesting 'fees' that bare no coloration to the actual cost of dealing with it to be winging their way to you, they might even ask for them to be paid before your car is returned (for another fee).
I'd guess (I worked for Lombard Finance for 9 years) they'll return your Car to you on proof of insurance.
Expect many interesting 'fees' that bare no coloration to the actual cost of dealing with it to be winging their way to you, they might even ask for them to be paid before your car is returned (for another fee).
The have requested return of all the paperwork relating to the car, through the intermediaries. I hope this does not signal they intend to dispose of the car and chase me for the shortfall. I can only assume they think the finance deal was taken out on behalf of my son, which is most definately not the case.
If the car was insured to be used in the manner it was, then you should be fine, as you will have complied with the policy requiring you to "keep teh vehicle comprehsively insured blah blah".
Seems to me that the following is the case.
1. Your son's trader policy was not valid (either because he didn't have a valid licence, or alternitvely because he wasn't doing "company business" at the time - see below).
2. Your policy is therefore your only hope. If your son was covered to drive the car fully comp under YOUR policy then you should be OK. Does it allow him to drive as a named driver? Does it allow anyone to drive the vehcile fully comp with your permission? Read your policy.
In short, trader policy won't help you, this is a simple question of whether your son was insured to drive the car fully comp on yours. If not, then you allowed the vehicle to be used without being insured and you may very well have breached your finance agreement.
bestinshow said:
Surely the car could not have been reported to the Finance company nd then tsken by them in a day. Especiallly as you are the registered keeper.
Something not quite right here.......
Maybe the finance company picked it up from the pound?Something not quite right here.......
Have to say though, this does smell fishy.
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