Originally Posted by
MadMac
Not totally true.
Remember the finance is secured against that asset, you have an obligation to
i) Retain the vehicle until the finance is repaid or
ii) Repay any outstanding finance on the sale of that vehicle if it is sold to a third party.
Yes you are still personally liable for the debt, but it means if you have sold it they will expect you to cough up the cash immediately or they will take you to court to get the money back.
A personal loan is just that, a loan to the person, not secured against anything specific.
However if the car has a marker against it then, the lender of the money must have been told the registration by the current car owner.
That would suggest knowing the reg. may have been a condition of the loan.
So either the loan is not truly a personal one and may be secured against the car, or the loan is H.P and has been both mis-sold and mis-marked as a personal loan.
A question to the source of the loan to clear up exactly what type it is would seem the best option.
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