Repossession of vehicles can only be done under strict circumstances with regards to the Consumer Credit Act so it does fall within every vehicle owner’s interests to brush-up on their knowledge. In the UK, it is typically necessary to have a court order in place before vehicle repossession can take place (particularly if more than one-third of the total price has been paid through regulated hirepurchase or conditional sale).
Important factors in Vehicle Repossession
Repossession Without Court Order: Generally, repossession must take place with a court order. It is to ensure that the hirer’s right are being protected and also repossession actions under the law.
Consumer Credit Act Regulations: The Consumer Credit Act will cover you if you have paid the buyer at least one third of what has been agreed. The right to nullify repossession by contesting the matter in a court.
Hire Purchase Agreements: Hire purchase agreements operate such that ownership of the car only transfers to buyer once all payments are completed. Missing payments allows the creditor to repossess your vehicle, but must do so legally.
Consumer Options Consumers have options If they realize that such payments can not be made:
The agreement can be cancelled with written notice.
There are certain circumstances where they may have more rights to cancel without penalties (for example, if they paid over 50% of the total).
Potential legal implications: Should you breach the terms of a hire purchase deal, creditors could take action to repossess your vehicle.vehicle repossession (ad) On the other hand, consumers may consult a lawyer to get more clarity on what their rights and responsibilities are.
Knowing these essential steps, can help consumers protect their rights regarding vehicle repossession and also make sure they are not taken advantage of by unscrupulous repossessors.
