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    • Hi @BankFodder
      Sorry for only updating you now, but after your guidance with submitting the claim it was pretty straight forward and I didn't want to unnecessarily waste your time. Especially with this guide you wrote here, so many thanks for that
      So I issued the claim on day 15 and they requested more time to respond.
      They took until the last day to respond and denied the claim, unsurprisingly saying my contract was with Packlink and not with them.
      I opted for mediation, and it played out very similarly to other people's experiences.
      In the first call I outlined my case, and I referred to the Contracts (Rights of Third Parties) Act 1999 as the reason to why I do in fact have a contract with them. 
      In the second call the mediator came back with an offer of the full amount of the phone and postage £146.93, but not the court costs. I said I was not willing to accept this and the mediator came across as a bit irritated that I would not accept this and said I should be flexible. I insisted that the law was on my side and I was willing to take them to court. The mediator went back to Hermes with what I said.
      In the third call the mediator said that they would offer the full amount. However, he said that Hermes still thought that I should have taken the case against Packlink instead, and that they would try to recover the court costs themselves from Packlink.
      To be fair to them, if Packlink wasn't based in Spain I would've made the claim against them instead. But since they are overseas and the law lets me take action against Hermes directly, it's the best way of trying to recover the money.
      So this is a great win. Thank you so much for your help and all of the resources available on this site. It has helped me so much especially as someone who does not know anything about making money claims.
      Many thanks, stay safe and have a good Christmas!
        • Thanks
    • Hermes and mediation hints. https://www.consumeractiongroup.co.uk/topic/428981-hermes-and-mediation-hints/&do=findComment&comment=5080003
      • 1 reply
    • Natwest Bank Transfer Fraud Call HMRC Please help. https://www.consumeractiongroup.co.uk/topic/428951-natwest-bank-transfer-fraud-call-hmrc-please-help/&do=findComment&comment=5079786
      • 31 replies
    • Hermes lost parcel.. Read more at https://www.consumeractiongroup.co.uk/topic/422615-hermes-lost-parcel/
      • 49 replies

Bought car with Outstanding Finance - Unit Stocking - Please help

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Yesterday I purchased a used car from a dealer and paid in full with my debit card.

When I went to the petrol station to refuel the car, I noticed the driver door was not aligning properly when shut, and the top part was slightly sticking out (I still wander how I did not notice this when first inspecting the vehicle).


when I called the dealer he said he had not noticed either but was willing to repair the door.

we arranged for me to take take the car back next weekend for him to carry out the repair.


This incident though, made me suspicious,

I decided to do an HPI check on the car to make sure it had not been involved in an accident.


When I received the results of the HPI check I was shocked to find out that although there was no record of the car being involved in an accident, there was actually a record of outstanding finance been recorded against the car. The finance is with Black Horse by the way.


I did some more online research and after paying for another check on MSN Auto check, it actually showed that the type of finance is "Unit Stocking".

From what I understand from my online research this is a type of finance available only to car dealers/traders used by them to be able to stock their business with their product (i.e. the cars they sell).


Here are my questions.

1. Since there is still outstanding finance on the vehicle, and since I have paid for it in full, who is the actual owner of the car. Myself or Black Horse? Bear in mind that when I asked the dealer if there is finance on the car he said no, and he said that the car was absolutely clean.


2. Should I even be driving the car around or could it be taken away by the finance company?


3. What are the implications (if any) with my insurance company? If I am not the owner of the car is my insurance voided?


4. What is the position I am standing in in regards with the dealer? Am I entitled to request a full refund and my old car back which I gave him as part exchange?


5. Is the dealer obligated to clear the finance on the car?


6. Could he have sold the car to me if there was still outstanding finance on the car?


7. If things do not go well, can I take him to small claims court or any other avenue I should seek?


Appreciate any advice you can offer.


The fact is I like the car, and the guy I have been dealing with has been very professional and helpful so far.

But I would like to know how to proceed if things start to go wrong... if you know what I mean.

Again thanks in advance for your help and advice.

Kind Regards


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I think you probably know the answer to the first one - Black Horse are the legal owners. Dealers should check these things out before they purchase them as it can come back and bight them on the bum.


If you not sure of the real use of the car and the fact the door is bent out at the top, probably broken into by levering it out and pushing a flat bar down to pull up the lock, then reject it and save yourself any bother.

Get your money refunded and go look at something else only next time get the dealer to do the HPI before you part with any pennies.

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is it not like standard practice for dealers to purchase cars on Unit Stocking finance?

What exactly is this finance and how does it work?

Because it surely is not the same as given to general consumers.

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Suggest you talk to the dealer asap and get them to sort it out or get a refund, but sound them out and let us know the outcame.

Good Luck.

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Hello again...


Here is how this has evolved.


Today I called Black Horse and they have confirmed there is still outstanding finance on the car.

When I asked them to tell me what is the outstanding balance or whose name the agreement was on, they said they could not give this information out, as it would breach data protection act, which I understand.


They confirmed though it is a Unit Stocking agreement from a car dealer.

They advised me to contact my dealer and ask them to send me the confirmation letter that the finance has been cleared.


I asked what would happen if the dealer would not pay for this finance.

They said they would go after the dealer and not myself, as they finance is on the dealer's name.

Also they said they would have no interest of repossessing the car.


After this I called the dealer I got the car from and told him of this, and he said that the finance showing on the car is from his dealership stock finance, and that now I have made the payment for the car, it should clear within the next 2 to 3 working days.


I asked him to send me the confirmation letter that states that there is no outstanding finance on this vehicle any more.


I will wait and see how this goes on.


Thanks again for advice.

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all main dealerships have finance stocking plans - no need to worry about this, a call to the dealer will sort the problem all they need to do is advise the finance company that they have sold the car.


most dealers have funding up to 90 from there finance companies at no interest.

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