Car Lease Problems (Scotland/Scottish Law)

[nuttymumof2]

*deleted*

Edited October 8, 2014 by nuttymumof2

[AndyOrch]

Are you in Scotland mumof2?

 

Andy

[nuttymumof2]

Are you in Scotland mumof2?

 

Andy

Yes I'm in Scotland ?

[AndyOrch]

Law and procedures are different in Scotland....I have amended your thread title so others are aware.

[AndyOrch]

A creditor must have a decree (or relevant document of debt) before proceeding with arrestment. Unlike other diligences, for most creditors, there is no requirement to serve a Charge for Payment prior to using this diligence.

 

There are specific circumstances in which a finance company must obtain a court order in advance in order to be able to repossess your car. For example, if the car was repossessed by virtue of a hire purchase agreement and you have paid more than one third of the total price of the car under the agreement then this means that the car becomes protected goods. The consequence of this is that a lender is required to obtain a court order to repossess the car – if they do not then you may well have a valid compensation claim as a result.

 

Where the value of the car is less than one third paid or if you gave valid consent for the car to be taken then this protection may not be available to you. The relevant section of the legislation is section 90 of the consumer crediticon Act 1974 and this applies to repossessions that have taken place within the last six years.

 

In addition to being able to claim compensation for an unlawful car repossession, where a car has been taken without a court order in circumstances that require one then you might also be able to obtain a release from the liability in the contract (for example the hire purchase agreement), which effectively means that the debt ceases to exist. Compensation can include the amount you have already made in hire purchase payments to the finance company, as well as the cash received by the finance company if the car was sold on after it was repossessed.