Car hire purchase question

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asked on Oct 22, 2004 at 01:45
by   Tourist
Hi. Lets say you buy a car under hire purchase from a finance company and it was later found that the car is a stolen car and subsequently detained by the police. Can the hirer sue the finance company? The logic I am thinking of is these:

1. Hire purchase. Does that mean that I until I finished off all my loan payment, that car still legally belong to the finance company? And if the answer is ¡°yes¡±, then shouldn¡¯t it be the finance company be the one suffering the lose and not me?
2. And since the police now have the stolen car, can we stop paying loan installation?
3. Furthermore, can we claim back all money paid to the finance company because they had illegally loan/hire to me a stolen car in the first place.
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answered on Oct 22, 2004 at 20:16
by   Unni
Typically the title to that vehicle remains with the Finance company till you have paid up all of the principle and interest outstaning on the hire purchase contract. Even if they gave you title prior to a full pay out,  that would be defective as it is not possible to give you title when someone else (the real owner) would have the better title at law. You may have an equitable interest and even that is doubtful. A better view of it is that you would have posssession and the real owner can only reclaim the property from you on proof of better title.

Your course of action would be against the finance company for fraud, deceit, obtaining property (your money) through false pretences, fraud etc and the list goes on.
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answered on Oct 22, 2004 at 20:48
by   Tourist
So that means when a stolen car is being purchased by an unknowing customer and it being financed thro' hire purchase, it should be the finance company who should be bearing the loses? But in real life, there have been reports of finance company “harassing” the poor unfortunate customer to continue paying installment when the car is probably already in police custody.  And when in fact, it should be the other way around with the customer “harassing” the finance company for all money previously paid. Sure is interesting info. Care to cite any particular court case to point out to the finance company? Thanks.
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