The idea of recovering a vehicle to pay off a debt owed to you can seem daunting because of the emotions involved.
Taking someone’s car can feel very personal, and people can get extremely upset when their cars are taken away.
You may own a finance company which has agreed a payment plan with them, or you may need to recover a vehicle to cover what a debtor owes you.
Hiring agents to act on your behalf can take that emotional sting away and make things far more businesslike.
Most new cars are bought using finance
Did you know that the Financial Leasing Authority, which is the trade body for finance companies, says 90% of all the new cars bought in the UK are now purchased using car finance agreements?
These include personal contract plans, hire purchase, and conditional sale agreements which stipulate that borrowers must make their monthly payments.
In effect, most new cars in the UK are no longer owned by the people who drive them.
They are owned by finance companies and garages which provide finance, until that last payment is made.
As more and more people struggle to make ends meet, having to recover financed cars is becoming more common.
If a payment isn’t made, finance companies can send out a default notice which gives the borrower 14 days to make that payment or their car could be repossessed.
What happens if you need to repossess or recover a vehicle?
In England and Wales, if the borrower has not paid more than a third of the total amount owed under the finance agreement, including any interest, a finance company can repossess the car without a court order. The law is different in Scotland, and you are likely to need an order there.
If the borrower has paid more than a third of the amount owed, there will need to be a court hearing to decide whether they are still liable for any further payments or whether they should receive some compensation for the amount paid.
So, you’ll need to apply to the county court for an order to the borrower to pay the amount owed or return the car (or the sheriff court in Scotland).
Can a vehicle be recovered to pay off other debts?
Yes, it can, if there is an order to pay by the High Court, the sheriffs acting for the court can seize assets to the value of the debt owed, including vehicles such as cars, motorbikes, vans, and lorries.
These will then be sold at auction. Generally, that does not realise the best price for the asset, so several assets may need to be seized to cover the debt.
This process must be carried out by officers of the court, sheriffs, who are, like Inter Alia, experienced bailiffs, know the law, and understand the importance of documenting everything carefully.
If the debtor resists, the sheriffs have the power to call police to help them carry out their duties.
How could Inter Alia help you recover a vehicle?
Our experienced team is able to act for you anywhere in the UK.
They will help you ensure you have the legal basis for repossession, help you obtain a High Court order, and act as sheriffs for the court.
You need to know what happens in your name, that your agents comply with the law, and that you can produce evidence of this taking place.
So, we at Inter Alia ensure everything is carefully documented.
When you choose a recovery partner, also ensure they are registered with the Financial Conduct Authority, (FCA), as we are at Inter Alia.
Why use a professional vehicle recovery service like Inter Alia?
Our experts understand the law and are adept at handling potentially difficult conversations with commercial and personal debtors.
The debtor understands they cannot appeal to our emotions, as they might with you. Hiring us also shows them how seriously you’re taking the matter.
That’s why we have many satisfied customers because of our positive outcomes.
