Is it not an offence to sell anything if its already on HP as the product is not yours to sell,I thought the correct procedure in the UK was first to get a settlement figure from the HP company and keep them imformed at all times as to what you are doing

Exactly what I have said.

Not entirely correct Tony g. If a private buyer purchased the car from the dealer in good faith, then he would acquire good title under the "innocent purchaser" clause of the Consumer Credit Act. But only if the car was financed by the OP under an HP or Conditional Sale or Loan Agreement. The innocent purchaser would, in turn, be able to pass equally good title if they wished to dispose of the car at a future date.

If a leased car (under the strict definition of lease rather than the often misunderstood coined phrase of Lease Purchase) is fraudulently converted by the lessee, then there is no such protection for a purchaser, innocent or not, and it is only then that the original financier has every right to repossess the car without resorting to legal action.

On a recent trip to see my mother in the UK I was suprised to see these Log Book loan shops springing up all over the place,the amount of interest they charge is beyond belief are they legal I suppose they must be .How do they stand if you owe for eg 1000ukps on a car to the HP company and the car is only worth 700ukps who has title to the car .

Thanks Tony,its a frightening scenario you could be out thousands and have very little comeback.

Other than deregulation of Financial Services, I don't know why the old Money Lenders Act got repealed - that limited the annual rate of interest on any type of loan to 48% per annum even on "payday" type of loans.

The problem with modern Payday Loans with several thousands % interest is the amount of interest payable after even just a short time.

Being "old-school" I don't mind spending money on a car but I won't spend money on money !

100% down and payments of nothing ,

You and I may be able to afford to do that - but most can't.

Just to clear up a couple of points Tony and Collos.

Registration of a financial interest in goods of any description, including cars, with HPI or any other agency, is purely voluntary. A potential buyer cannot depend on a search of any such register to demonstrate that good title rests with the seller. However, it is a fact that the vast majority of lenders in the U.K. would register their interest with HPI, so searching their database is a good start.

Log Book Loan companies, as far as I am aware, tend to secure their interest in the goods by utilising a "Bill of Sale". This instrument is exactly what it says on the tin! The customer has agreed to sell the goods to the loan company and title passes at the point when the company advances funds to the owner- usually the registered keeper. Title will revert to the customer only when they have discharged their liability under the loan conditions. This form of lending is also known as a Chattel Morgage and works the same way as a house mortgage.

Thanks for that it can be a scary world well established and 100% financially sound. How would you know that?.....Don't ask me. I've never come across one. I take risks just like everyone else, but I do so very carefully.

Thanks for that it can be a scary world