BBC 5 Live Report on Outstanding Finance
In an investigation, BBC 5 Live found that unwitting used car buyers are being chased for large sums of money, owed on loans taken out by previous owners.
The BBC 5 Live report suggested that car owners raising finance with logbook loans secured on their vehicles are selling the vehicles before settling their accounts, which is leaving buyers at risk of losing their cash – and the car.
If a vehicle is sold on, still with outstanding finance, the finance company has every right to repossess the vehicle. Even if it was bought innocently.
A car history check will inform the buyer of any finance interest that has been registered by a lender and has not been subsequently removed. Details of the loan type and the lender are contained within the a report, enabling the enquirer to check the status of the finance agreement with the lender if they feel that is necessary.”
Car buyers who buy a genuine HPI Check for themselves at www.hpicheck.com are also protected by the HPI Guarantee * which protects customers for any loss on the rare occasions where finance houses have not provided HPI with up to date data.
The best way to avoid being a victim of finance fraud is to conduct a history check with a reputable service such as HPI. Avoid cheap history checks, as these do not include finance information. As with most things, you will only get what you pay for.