My son purchased a car from a 'friend' several months ago and had to apply for the V5 which he duly received. The car was insured with his partner as the main driver and him as the named driver. They split up, he kept the car and was trying to sell it. Unfortunately he swerved to avoid an animal and rolled the car. With an excess of £900, a market value of £2000 and the prospect of increased premiums for him and his ex-girlfriend, he didn't claim and scrapped the car.

He has just received a letter from a loans company, stating that they had the logbook for the car as a woman had taken out a loan with them. She had sold the car on and it had passed through others before my son bought it. The woman had defaulted on the loan, the company obtained judgement against her and were now seeking to repossess the car or recover £1500. Where does he stand?