Can bailiffs take a car on finance?

One of the common questions that we come across is, ‘Can bailiffs take a car on finance?’. This article is dedicated to addressing this concern, and offering guidance on how to tackle such a situation.

We understand that dealing with bailiffs can be stressful, and the fear of your car being taken away can add to the anxiety. But remember, you’re not alone in this. Every month, over 170,000 people visit our website seeking information about such issues.

In this article, we’ll walk you through:

• Ways to prove that your car is on finance or not in your name.
• How to handle situations when bailiffs come to your door.
• Steps to take if a bailiff takes the wrong car.
• How to complain about a bailiff if needed.
• Various debt solutions available to you.

StepChange found that 90% of people who have been visited by a bailiff in the last 2 years identify as vulnerable. With over 50% reporting depression and more reporting stress and anxiety.¹ So, we understand how tough dealing with bailiffs can be.

Don’t worry; our goal is to empower you with knowledge and solutions, so you can face your debt problems head-on. With the right information, you can navigate through this.

Can a Bailiff Take a Car if it’s Not in My Name?

Bailiffs can only take things that belong to the person named on the debt. Debt related vehicle-seizure is common, but there are some limitations.

They cannot take vehicles that belong to other people. That doesn’t mean they won’t try to clamp and remove vehicles if they believe they belong to the debtor.

Therefore, you will need to provide evidence that proves you are not the owner of the vehicle, even if it’s parked at your home.

Your Rights With Bailiffs

I shared with The Mirror how important it is to know your rights when faced with bailiffs at your front door ².

You see, bailiffs are not allowed to take items that belong to someone else. If they’re threatening you, you can make a complaint.

Here’s a quick table that will help you better understand what bailiffs can and can’t do. For more information, be sure to read our detailed guide.

Who is the Owner of a Car on Finance?

When talking about hire purchase, the legal ownership definition means that you are not the owner of the car while you are making payments towards it. The car finance provider legally owns the car up until the final payment is made by you.

After the final payment is made, the car becomes yours, or you may need to hand it back to the car finance company, depending on the agreement you made.

Can I Stop Bailiffs Taking My Car?

You can take action to make it harder for bailiffs to take your vehicle. You may want to do this even if your car is on finance. By using the following steps, you could prevent your car from being clamped during the visit.

Park your car inside your locked garage. Make sure it remains inside behind a locked door.

Move the vehicle to someone else’s private property. Bailiffs cannot remove your vehicle from private land. Ask permission from your family or friend before parking your vehicle on their land.

Don’t Park your car on a public street. Bailiffs can and will remove your vehicle from the road. You might be tempted to park your car a few streets away. This is risky as bailiffs use a special camera that reads registration numbers.

They will often drive around searching for the vehicle, which puts your car at risk of being found.

Can a Bailiff Clamp a Car on Finance?

As the car doesn’t belong to you, a bailiff shouldn’t clamp the car, but they can do. Once clamped, you have 2 hours to show evidence that proves the car is on finance. At this point, bailiffs may still take the vehicle. If this happens, you should contact a debt advisor for assistance.

Make a complaint about the clamping and/or removal of your car to the bailiff’s head office. You can also complain to the creditor you owe the debt. Show proof that supports your complaint, along with a copy of all complaints you make if you do so in writing.

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Can Bailiffs Remove a Car on Finance?

Bailiffs should do their research into the vehicle before removing it. The rules on vehicle removal by bailiffs are clear – they can’t take a car that isn’t yours.

They need to check the DVLA and the Hire Purchase Index. However, don’t rely on them doing this. Have the evidence ready. If you are unable to prove that the car is on finance within the 2-hour time frame, the bailiffs can remove the vehicle.

Therefore, I advise you get all your paperwork together before the bailiffs arrive.

» TAKE ACTION NOW: Fill out the short debt form

How Do I Prove to the Bailiffs that the Car is on Finance?

You can save time and prevent your finance car from being clamped if you have the proof at hand. Prove your car is on finance by showing the car finance agreement documents.

Additionally, you could also show bank statements that show the car finance payments. For additional proof, or if you can’t find the initial agreement, you can visit the HPI check website. Here you simply enter your registration number, and you can use the results as proof.

Protecting your car from bailiff clamping isn’t always possible, but as you don’t technically own the car while you’re paying for it, you might be able to stop the bailiffs taking it.

How Do I Prove to the Bailiffs that the Car isn’t Mine?

Establishing non-ownership to bailiffs should be enough to stop them clamping or seizing your car.

You can prove a vehicle isn’t yours by showing the bailiff’s proof that it belongs to someone else. Ask the owner to produce evidence such as their car finance agreements, proof of purchase or any other documentation that shows they own the vehicle.

Bailiffs Can’t Take Cars Essential for Work

You can stop a bailiff from taking your car if it’s essential for work. For example, you may be a delivery driver, taxi driver or a van used for transporting tools.

The essential car must not be worth more than £1,350. If it is valued at £1,350 or more the bailiffs can clamp and remove the vehicle to recover the debt.

Bailiffs Took the Wrong Car

There are consequences for bailiffs if they take the wrong car.

Shockingly, bailiffs have been known to take the wrong car! Take a look at this example:

What this person is describing is theft – the bailiffs have stolen his car. This is illegal, and this person may need to go to the police in order to get his car back. They may even need to pursue civil action against the bailiffs and have a court order for their car to be returned!

If you are in a similar situation, I recommend speaking to a debt charity for some free legal advice. You need to move forward with caution here to avoid making the situation worse. Seeking legal advice before you do anything is the best move.

How do I Complain About a Bailiff?

If you think that a bailiff has been unreasonable or behaved inappropriately, you can make a complaint. You can also make a complaint if you feel that they have broken any of the Financial Conduct Authority’s (FCA) guidelines.

Make your first complaint to the bailiff’s agency or company so that they have the chance to sort out the issue themselves. If you feel that they have not taken your complaint seriously enough or have not addressed your issue properly, you can escalate matters.

You can make any secondary complaint to the Financial Ombudsman Service (FOS). They will investigate and, if your complaint is upheld, the bailiff agency or company may be fined. You could even be owed compensation.

You can also make a complaint to other regulatory bodies that the bailiff’s company may be member of. The Civil Enforcement Authority (CIVEA) and the Credit Services Association (CSA), for example, both have their own complaints process for their members.

Can I Get a Debt Solution?

As I mentioned above, you might be eligible for a debt solution which might help you write off some of your debts. While most debt solutions won’t help with secured debts – like your car – they can help you manage your unsecured debts, which can help you make your car payments.

There are several different debt solutions available in the UK, so I recommend speaking to a debt charity as soon as possible. Their advisors will be able to look at your finances in detail and help you work out which debt solution will work best for you.

I have linked a few charities that offer these advisory services for free below.

Debt Management Plan (DMP)

A DMP is an informal debt solution that lets you pay off your debts via a single monthly payment.

Because it is informal, it is not legally binding so you are not tied into a DMP for a minimum number of payments.

Individual Voluntary Arrangement (IVA)

An IVA is a formal agreement between you and your creditors. You agree to pay a monthly sum that is distributed amongst your debts, and your creditors agree not to contact you during your IVA.

IVAs typically last for 5 or 6 years, and any outstanding debt is wiped off when it ends.

Keep in mind that IVAs are not suitable for everyone. You need to owe several thousand pounds to more than one creditor to be eligible. You also need to demonstrate that you have some disposable income every month.

Trust Deed

IVAs are not available in Scotland. Instead, you will need to opt for a Trust Deed.

Trust Deeds work in the same way as an IVA – you pay an agreed sum each month that is shared amongst your creditors, they can’t contact you, and any leftover debt at the end of your Trust Deed term is written off.

Debt Relief Order (DRO)

A DRO is a good option for those facing financial hardship with no assets and little income.

For 12 months, you make no payments, but your creditors freeze your interest and don’t contact you.

If your finances haven’t improved during this year, you may be able to write off your unsecured debts.

Bankruptcy

If you have debts but no realistic possibility of ever paying them off, you may need to declare bankruptcy.

Bankruptcy has an unfair stigma attached to it as it may be your only way of getting a financial fresh start. That said, it is a serious financial situation that should not be taken lightly.

Sequestration

Sequestration is the Scottish version of bankruptcy.

If you have little income and no valuable assets, you may be able to apply for a minimal asset process bankruptcy (MAP). A MAP is a quicker, cheaper, and more straightforward version of sequestration, so worth considering.

References

1. StepChange – Creditor and Debt Collector Conduct
2. Mirror – Bailiffs: What they can and can’t take