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was reading in the news papers of the US ..how people will get into physical altercations even with a "tow truck driver" hired by the bank or auto dealership to come and take back the vehicle..and even chase after them if they try to flee with the vehicle..and lately resulted in the death of the auto owner..when the person trying to repossess their vehicle pulled in front of them with the tow truck trying to stop them from fleeing.
is this method also used in Britain? if so, how common ? or how different? and since when?
what is necessary for a repossession to be legal? just 1 late payment or why so many dealerships and banks seem to be so anxious to take back the vehicle..even after 1 late payment? what they gain by doing this?
please explain what you can..and anything about how has changed in past 20 years and how?
thanks for your answers!
2011-05-28 14:30:54
It’s part of the hire purchase or finance agreement, the contract signed by the purchaser, that ownership of the car remains with the finance company or their agent (rarely the car dealership that sold the car) until the loan is paid off.
So although while buying a car on finance you keep it and use it on a daily basis, you do not legally own it as your property, until the debt is discharged.
There will almost certainly be a steady supply of such cars here in Britain. Not far from me there is a used car place that specialises in reselling repossessed cars.
There is a lot of bad debt about and people defaulting on loans, miss a payment and you are in breach of contract, the finance company isn’t getting back what they lent to you but you are getting the use of the car, if you were the finance company how long would you let someone have free use of a car off your back?
2011-05-28 14:30:54
To do this in UK with the possible exception of the early stages of a "Hire Purchase" agreement a Court Order will be needed. usually it is a peaceful operation with some verbals form the debtor.
Many would like to kill a debtor but the Courts and police take a dim view of that .
What you describe would be considered rather heavy handed here and the man trying to re re-possess would be up sh-t creek without a paddle