My car didn't sell because it's falsely listed as a write off - can I sue the Motor Insurance Bureau for the lack of sale?

I'm trying to sell a 1991 BMW 325i. A potential buyer changed his mind because, he said, there is a record that says a 318i with my registration was a Category B write off in 1999. I checked with HPI and they confirmed there was such a marker on my registration. I have owned the car since 1991 and the registration plate has never been off the car. HPI acknowledge this. They have launched an investigation involving the Motor Insurance Bureau and an insurance company (they won't tell me who). The investigation should, they told me, have been concluded in three to five working days, but is not yet resolved after two weeks. Until there is a resolution I can't sell my car and I have lost one and possibly many potential buyers. It seems very likely to me that their error caused a poor response to my eBay advertising, which in turn caused me to lower the price. HPI have told me that this is a "difficult" case and that MIB may not allow the marker to be removed. What should I do? Would I be eligible for compensation from HPI and/or MIB for the lack of sale and the reduction in price? Could I use the Small Claims Court?

Asked on 23 August 2018 by Peter Winder

Answered by Honest John
You could take them to the small claims court, but over and above what you have done already your options are limited. It would appear that there has been a clerical error. If you can prove through your MoT history that the vehicle has been in use from 1991 and that the chassis number on your reg doc is the same as that of your car (also get BMW to confirm this for you), they will be able to advise you exactly what your car is based on the chassis number. You then have all the evidence you need to prove the error lies with whomever inputted the data. The Motor Insurance Bureau will allow the marker to be removed if it is a clerical error. You would be eligible for compensation, but from who you would claim it I'm not sure. MIB will not provide the details of the insurer who categorised it. They and HPI may not have made an error, so you could not sue them. Try having an Experian, rather than a normal HPI, check done. In the past, it used to log the insurer that categorised the vehicle.
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