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Hi All, The query I have is in relation to a particular garage owner and in particular to what I believe to be an illegal practice. I know a lady that bought a car from this guy and she has to pay for it weekly, he uses cards for his customers and marks down their weekly payments and gets them to put their signature opposite the weekly amount. This guy is not a licensed credit agency, but appears to be something of a loan shark, he gives people the log book of the cars on their first payment and the cars are then transferred into their names.
Is this practice legal as there are no finance companies involved, and what would be the situation if he was threatening to repossess an individuals car ?
He refers to these people as "the club" but as far as I can gather there is no credit agreement in place outside of his weekly payment records.
Look forward to your replies........
Dept of Revenue might not think this is o.k
Dept of Revenue might not think this is o.k
My main query is in relation to him repossessing the car if the customer has defaulted on a few payments, but has paid over one third of the original price of the car.
Hi Slim,
What he does is sells you the car at x amount, which is usually way above the market value, you then agree to pay him x amount per week until you have paid the full amount. There are no written agreements in place, the only document used is the weekly/monthly payment card. This is something that this trader does by himself and as such would not be regulated by the financial regulator. There is no reference to interest being charged and the log book is handed over on the day the deal is done, to be put into the buyers name. When the car is fully paid for he just rips up the card in your presence and that is your transactions completed. At no stage do you receive any type of invoice reflecting the fact that you have purchased a car from this individual.
..This guy is not a licensed credit agency, but appears to be something of a loan shark, he gives people the log book of the cars on their first payment and the cars are then transferred into their names...
Lets just say that I know of one young mother who is finding it difficult to cope in the present climate and last week he showed up at her door and said that if he did not get his money he would have to repossess the car.
He does not sell to strangers in this way only to people he knows live in the town ..........
Well in that case why does she not just hand the car back???
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