Bailiffs cannot take control of leased vehicles, or vehicles on hire-purchase because they do not belong to the debtor.[1] The hirer gains no proprietary right in the property, until the exercise of an option to purchase, otherwise, the property in the hired goods remains with the lender.[2]
The driver never owns leased goods. Cars on hire purchase belong to the lender until the hirer makes the final payment.[3]
There are websites that give misleading advice that debtors have "Beneficial interest" or "equity" in hire-purchase goods.[note] The beneficial interest theory was defeated in court in claims against Newlyn Plc and Marston Group Ltd.
The debtor can apply for an injunction to recover the vehicle[4] together with damages for depriving them of its use.[5]
If a bailiff sells the car while still on hire-purchase, the buyer never gets legal title over it[6] and the lender can retake the car and return it the hirer.[7]
A solicitor representing bailiff company Newlyn Plc[8] attempted to set a precedent for bailiffs to clamp hire-purchase cars to compel the hirer to hand over money. The theory was a hirer had a cumulative beneficial interest in the car, but the judge found the solicitor's legal argument flawed.[9]
Another bailiff company had a policy training its bailiffs to clamp hire-purchase goods without removing them to coerce hirers to give a money transfer. A hirer got an injunction and the bailiff company paid damages for depriving the hirer of his goods.[10][11]
The bailiff should check with the DVLA whether the debtor owns the car before clamping it. The Local Government Ombudsman says it "considers it reasonable for the bailiff to check ownership with the DVLA".[12]
The debtor must give the bailiff, a Notice of intention to apply for an injunction before applying to the court.[13][14]
Get expert help before applying for an injunction and you may recover your costs,[15] even if you represent yourself as a litigant in person.[16]
Template 'Notice of intention to apply for an injunction'.[20]
Send this notice to the bailiff company by email, and by text message to the bailiff. Make a screenshot of the sent email recording the time it was sent and make a screenshot of the sent text message.
When the bailiff removes the clamp from the hire-purchase car, you may recover damages from the bailiff, including wasted hire charges, insurance and road tax. You may also recover the cost of alternative transport arrangements together with a fixed daily rate for depriving you of the availability of the car.
Make a claim in the small claims track[17] against the named bailiff[18] and the creditor.[19]
After the injunction is executed and the clamp is removed, enforcement of the traffic contravention debt becomes financially toxic for the bailiff. That doesn't mean you are off the hook for the traffic debt and the bailiff's fees, but the bailiff has no means to enforce them and they become a lost cause.
[1] Paragraph 10 of Schedule 12 of the Tribunals Courts and Enforcement Act 2007
[2] Chitty on Contracts (33 ed.) ss39-307 (paywall)
[3] Helby v. Matthews [1895] AC 471
[4] Section 4 of the Torts (Interference with Goods) Act 2007
[5] Section 3 of the Torts (Interference with Goods) Act 2007
[6] Paragraph 51(3) of Schedule 12 of the Tribunals Courts and Enforcement Act 2007
[7] Agoke v Newlyn Plc, Louis Sanders, A1 Environmental Ltd (ex-parte), 12 December 2017 (unreported)
[8] Peter Felton Gerber, Felton's Law, representing Newlyn Plc, 7 April 2017 (unreported)
[9] Mulwanyi v Newlyn Plc Central London County Court, 7 April 2017 (unreported)
[10] Tandea v Marston Group Limited, Central London County Court, Jan 2020 (unreported)
[11] Soyoye v Marston Group Limited, Bromley County Court, June 2020 (unreported)
[12] Local Government Ombudsman complaint no 11 007 684 against Blaby District Council, 10 July 2012
[13] Part 3, Practice Direction, Pre-action Conduct and Protocols
[14] Part 6, Practice Direction, Pre-action Conduct and Protocols
[15] Civil Procedure Rule 44.4(3)
[16] Civil Procedure Rule 46.5
[17] Part 27 of the Civil Procedure Rules
[18] Paragraph 66(6)(a) of Schedule 12 of the Tribunals Courts and Enforcement Act 2007
[19] Paragraph 66(6)(b) of Schedule 12 of the Tribunals Courts and Enforcement Act 2007
[20] Rule 6, Practice Direction – Pre-Action Conduct And Protocols
[Note] Sheila Harding Bailiff Advice website.
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