First innocent purchaser - HP Act 1964

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Thu 7 Jan 2010 16:44
First innocent purchaser - HP Act 1964 - gramar
A car has had four previous keepers. One of them took out a HP agreement to buy it in Nov 2005 payable in 48 monthly instalments. June 2009 Keeper number five buys the car innocently from a back street garage who do not check whether there isoutstanding finance on the car.

By Sept 2009 the new owner has problems with the car so decides to cut when the auction hahouse carries out a routine HPI check and discovers outstanding finance is owed. Is the new owner entitled to his £500 from the auction house?

Section 27 of the Hire Purchase Act 1964 (embodied as s22 of schedule 4 of the Consumer Credit Act 1974) says the first innocent purchaser has good title to goods on which there is outstanding finance but only if they have no knowledge of this. As I don't know which of the previous owners defaulted and it is all but impossible to now find out, is keeper five also protected by s27 of the Hire Purchase Act or is he the loser in this case?
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Thu 7 Jan 2010 17:21
First innocent purchaser - HP Act 1964 - bell boy
keeper no5 didnt take reasonable precautions to protect himself

auction wont pay out as they would be culpable to enacting a fraud against hp company
motto of story?
hpi afore yee buy the proper one though not a micky mouse copy
£20 simples innit
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