Got Car Finance For A Friend

[mark1979]

I got a car on finance for a (former) friend. Our agreement was that he would make the payments and then once the finance was paid off that I would register the car to him. He has struggled with the last few payments, they have been a bit short and usually late. Now he has cut off all contact with me and has ignored my requests for him to return the car to me if he cannot pay for it. He has blocked me on facebook, whatsapp etc and is just not responding to me at all.

What can I do? Obviously I want the car back but what happens if it is worth less than the amount owing to the finance company? This guy has no income that I know of but he does own an old building which he bought in the hope of doing it up and selling it on for a tidy profit. I have checked land registry, it is registered to him and his wife and there are no charges on it.

Note this is not the car in my other thread about VT issues.

[des8]

Re: Got Car Finance For A Friend

So the car finance is in your name, the car is registered to you as the keeper, though your ex friend actually has possession.
Who has insured it? What information was given to the insurance company about ownership?

Whilst accommodation deals like this are not illegal per se, it is almost certainly fraudulent.
When you arrange the finance you normally have to declare that you will be the registered owner and keeper of the vehicle.
In applying for finance on behalf of someone else when you do not intend to be keeper and owner you will have lied to he finance company, and that is considered fraud on the part of both persons involved

Your options are considerably reduced.
Possibly you need to find the vehicle and recover it personally, as I would not recommend a legal approach as the ramifications could be considerable

[mark1979]

Re: Got Car Finance For A Friend

Its insured in my name with me named as registered keeper.

Finding the vehicle is going to be an issue as I do not know where he is. Can't I report it stolen?

[des8]

Re: Got Car Finance For A Friend

You could report it as stolen and the police might recover it.
However if your ex friend tells plod that he was buying it from you, and mentions your private arrangement, you MIGHT find yourself in a whole different ball game.
If you could complete the finance payments yourself you would then be in a better position to pursue what was owing to you.

[Amethyst]

Re: Got Car Finance For A Friend

The insurance is in your name? Is your 'friend' on the insurance as named driver ?

If he has an accident that's your no claims screwed. And he could well be driving it uninsured.

[mark1979]

Re: Got Car Finance For A Friend

So I tried reporting it as stolen, but I told the police about our arrangement and that I had asked for the car to be returned etc. They fobbed me off and said it was a civil matter.

BMWs have a feature called BMW ConnectedDrive which allows you to remotely control things and to track the car. It has to be activated from inside the vehicle but as I have another car that is already setup on it, I talked BMW into activating it remotely for me. My intention was to just turn up with the spare key and take the car back. Sadly for some unknown reason, BMW limit the tracking facility so that it only works if you are within 1.5km of the vehicle. They cite data protection as the reason for not providing it if you are further away.

It now appears that he has decided to leave the UK (with my car) and live elsewhere in EU!!!!

[des8]

Re: Got Car Finance For A Friend

Have you tried to locate him using a tracing service?
There are a number listed on Google, some are no result no fee.
And I don't know how good they are!

The other possible option (?) is to sue for the return of the vehicle or its money worth.
If you win by default because he doesn't show you could then obtain a charging order on his property.
At least I think that is a possibility, but others might know better!!

[mark1979]

Re: Got Car Finance For A Friend

Dealing with this via a solicitor.

We are initially obtaining a detention and preservation order which will also include an order for him to return the vehicle to me within 7 days.

Let's see how that goes...

[des8]

Re: Got Car Finance For A Friend

Thanks for letting us know.
Would appreciate it if you could keeps us updated as and when.

[mark1979]

Re: Got Car Finance For A Friend

I will. Looking to get a court hearing without notice on Friday or Monday so hopefully it will go in my favour.

Then its a matter of enforcing it.

Also going to be filing a claim against him and if successful I will then go for a charge against a property he owns that he is trying to sell.

[mark1979]

Re: Got Car Finance For A Friend

Today, HHJ Cooke granted me an interim order for the detention and preservation of the vehicle but declined to make an order for the car to be returned to me within 7 days as this was done without notice. I will ask for the return order at the hearing in 2 weeks...

ORDER FOR DETENTION AND PRESERVATION
_________________________________________________

IF YOU, THE WITHIN-NAMED XXXXXXXXXXXXXXXX, DISOBEY THIS ORDER YOU MAY BE HELD TO BE IN CONTEMPT OF COURT AND MAY BE IMPRISONED, FINED OR HAVE YOUR ASSETS SEIZED.
ANY OTHER PERSON WHO KNOWS OF THIS ORDER AND DOES ANYTHING WHICH HELPS OR PERMITS THE RESPONDENT TO BREACH THE TERMS OF THIS ORDER MAY ALSO BE HELD TO BE IN CONTEMPT OF COURT AND MAY BE IMPRISONED, FINED OR HAVE THEIR ASSETS SEIZED.

Name and last-known address of Respondent:
XXXXXXXXXXXXX
XXXXXXXXXXXXX
XXXXXXXXXXXXX


And now of an address unknown, in the Hellenic Republic of Greece



THIS ORDER
1. This is an order for detention and preservation made against the Respondent on 2 June 2016 by HHJ Cooke on the application of XXXXXXXXXX (‘the Applicant’). The judge read the witness statements listed in Schedule A and accepted the undertakings set out in Schedule B at the end of this Order.

2. This order was made at a hearing without notice to the Respondent. The Respondent has a right to apply to the court to vary or discharge the order – see paragraph 7 below.

3. There will be a further hearing in respect of this order on 20 June 2016 (‘the return date’) before HHJ Barker QC sitting in the Birmingham District Registry at 14:00.

ORDER FOR THE DETENTION AND PRESERVATION
4. The Respondent must immediately detain and preserve the BMW DIESEL ESTATE x5 Drive 40d M Sport motor vehicle, registration number XXXXXXXXX.

SERVICE OF DOCUMENTS
5. The Applicant is permitted to serve the claim form, application notice and witness statement of XXXXXXXXXXX and any subsequent statements, documents or orders, on the Respondent by email at XXXXXXXXXX@gmail.com. The claim form shall be deemed served at 9am on the next business day following its being sent by email.

COSTS
6. The costs of this application are reserved to the judge hearing the application on the return date.

VARIATION OR DISCHARGE OF THIS ORDER
7. Anyone served with or notified of this order may apply to the court at any time to vary or discharge it (or so much of it as affects that person) but they must first inform the Applicant’s solicitors upon one working day’s notice. If any evidence is to be relied upon in support of the application, the substance of it must be communicated in writing to the Appellant’s solicitors in advance.

INTERPRETATION OF THIS ORDER
8. A Respondent who is an individual who is ordered not to do something must not do it himself or in any other way. He must not do it through others acting on his behalf or on his instructions or with his encouragement.

PARTIES OTHER THAN THE APPLCIANT AND RESPONDENT
Effect of this order

9. It is a contempt of court for any person notified of this order knowingly to assist in or permit a breach of this order. Any person doing so may be imprisoned, fined or have their assets seized.



Persons other than the Respondent outside England and Wales
10. Other than the Respondent, the terms of this order do not affect or concern anyone outside the jurisdiction of this court except:

(i) Any agent of the Respondent appointed by power of attorney;
(ii) Any person who:
(a) is subject to the jurisdiction of this court;
(b) has been given written notice of this order at his residence or place of business within the jurisdiction of this court; and
(c) is able to prevent acts or omissions outside the jurisdiction of this court which constitute or assist in a breach of the terms of this order; and
(iii) Any other person, only to the extent that this order is declared enforceable by or is enforced by a court outside the jurisdiction in another country or state.

Assets located outside England and Wales
11. Nothing in this order shall, in respect of assets located outside England and Wales, prevent any third party from complying with (a) what it reasonably believes to be its obligations, contractual or otherwise, under the laws and obligations of the country or state in which those assets are situated or under the proper law of any contract between itself and the Respondent; and (b) any orders of the courts of that country or state, provided that reasonable notice of any application for such an order is given to the Applicant’s solicitors.

COMMUNICATIONS WITH THE COURT
12. All communications to the court about this order should be sent to:

Chancery Division, Birmingham District Registry, Priory Courts, 33 Bull Street, Birmingham, West Midlands B4 6DS quoting the case number. The telephone number is 0121 681 4441.

The offices are open between 10 a.m. and 4.30p.m. Monday to Friday




















SCHEDULE A: WITNESS STATEMENTS

The Applicant relied upon the following witness statement –
XXXXXXXXXXXX, first statement, dated 25 May 2016.


SCHEDULE B: UNDERTAKINGS GIVEN TO THE COURT BY THE APPLICANT

1) If the court later finds that this order has caused loss to the Respondent, and decides that the Respondent should be compensated for that loss, the Applicant will comply with any order the court may make.

2) The Applicant will serve upon the Respondent together with this order as soon as reasonably practicable:

(i) copies of the claim form;
(ii) a copy of court notice N510;
(iii) the evidence used in support of the application;
(iv) a further witness statement confirming additional matters of fact stated by the Applicant’s counsel to the court at the hearing;
(v) a note of the hearing.

[wales01man]

Re: Got Car Finance For A Friend

If the car is in Greece is it in the juristriction of this court?

[mark1979]

Re: Got Car Finance For A Friend

According to some EU legislation that the barrister quoted, yes. The judge agreed and also agreed that my claim against him could be served by email as the contract was made in UK and so is subject our laws.

[mark1979]

Re: Got Car Finance For A Friend

Looks like the court order did the trick.

He has agreed to return the car, either in person in September or I can collect it next week. I am flying out to Greece next Friday.

[des8]

Re: Got Car Finance For A Friend

Well done and good luck.
Hope he doesn't change his decision to co-operate