Can a personal property securities be placed on a car without notifying the buyer after a sale and payment plan

Expert's Assistant chat
Customer: Can a personal property securities be placed on a car without notifying the buyer after a sale and payment plan arrangement has been made
JA: What state is the buyer in? It matters because laws vary by location.
Customer: the buyer is in n New Zealand
JA: What steps has the buyer taken so far?
Customer: He has just found out about this today and does not know if he should continue payments as a third party has a claim to the vehicle
JA: Is there anything else the Lawyer should know before I connect you? Rest assured that they'll be able to help you.
Customer: the car was bought with a $2k downpayment on April 1 and payment agreement (verbal nothing in writing) of $80 a week. Seller placed a personal property securities on the vehicle on May 11 . The buyer was not notified.
Answered by Chris The Lawyer in 2 mins 1 year ago
imglogo
Chris The Lawyer
10+ years of experience
logo

42054 Satisfied customers

Expert in: Family Law, Legal, Estate Law, Real Estate Law, Criminal Law, Employment Law, Business Law, Consumer Protection Law, Bankruptcy Law, Traffic Law, Personal Injury Law.

logoimgimgVerified lawyers, 10+ years of experience
Chat with a Lawyer in minutes, 24/7
imglogo

Verified lawyers, 10+ years of experience

Save time and money. Get specialized help.

imglogo
Chris The Lawyer
10+ years of experience
logo

42054 Satisfied customers

Jessica

Jessica

Consultant

31,131 Satisfied customers

Pearl avatar
Lawyer's, Assistant
14 Lawyers are online right now.
img

Chris The Lawyer, Expert

Hi My name is ***** ***** I am a New Zealand lawyer based in Wellingtonwith more than 42 years of experience. I am here to help with your questions.

Customer
Hi Chris, my son bought a car on a hand shake agreement from a private party he paid $2k down with a $80 a week payment agreement until 6K was paid off. There is no paperwork on this and no payment schedule written. He missed one week and the seller had a manager from ANZA motors call me to tell me there was a personal property security lodged on the vehicle with them. That Sam needed to keep up his payments or the car would be repossessed. The car is registered in my name and I have insurance on the car even though it was my son driving it. Neither one of us were aware of a PPS however I have confirmed it on the register today. This was created on May 11, the car purchases agreement started on April 1st. Can they register PPS after the sale agreement?
img

Chris The Lawyer, Expert

It is not necessary to obtain consent to register the security. However you can apply to remove a security if no money is owed. If the vehicle was sold with money owed to the third person, then the buyer can claim against the seller if the third party tries to claim or the car is repossed

img

Chris The Lawyer, Expert

They can regsiter after the sale however

Customer
Can they now repossess the car? Should payments be continued to the private individual or to the 3rd party with the interest?
Customer
does registering security mean that they borrowed against the car?
img

Chris The Lawyer, Expert

Registering the security doesn't mean there is a third party however, although the seller may have assigned the debt, which is permissable. If they want to repossess they must first give a notice

img

Chris The Lawyer, Expert

Before repossession the following rules apply:

A lender cannot take possession of the goods unless the borrower is in default or the lender has reasonable grounds to believe the goods are at risk.

The lender must serve a repossession warning notice on the borrower and every guarantor, unless they have reasonable grounds to think the goods have been, or will be, damaged or removed.

Every repossession warning notice must give the nature of the default and give the defaulter at least 15 days to remedy the problem.

Ask a lawyer and get your legal questions answered.
See all Legal Questions
img
Related Legal Questions
How it works
logoAsk for help, 24/7
Ask for help, 24/7
Members enjoy round-the-clock access to 12,000+ verified Experts, including doctors, lawyers, tech support, mechanics, vets, home repair pros, more.
logoExpert will respond in minutes
Expert will respond in minutes
After you reach out, we match you with an Expert who specializes in your situation. Talk, text, chat, whichever you prefer.
logoSave time & money
Save time & money
No scheduling hassles, missing time from work, or expensive consults.
A JustAnswer membership can save you significant time and money each month.
img
logo 593 Verified lawyers, 10+ years of experience
DISCLAIMER: Answers from Experts on Askalawyeroncall.com are not substitutes for the advice of an attorney. Askalawyeroncall.com is a public forum and questions and responses are not private or confidential or protected by the attorney-client privilege. The Expert above is not your attorney, and the response above is not legal advice. You should not read this response as proposing specific action or addressing your specific circumstances, but only to give you a sense of general principles of law that might affect the situation you describe. Application of these general principles to particular circumstances should be done by a lawyer who has spoken with you in confidence, learned all relevant information, and explored various options. Before acting on any information received from an Expert, you should hire a lawyer licensed to practice law in the jurisdiction to which your question pertains. The responses above are from independent, freelance Experts, who are not employed by Askalawyeroncall.com . The site and services are provided “as is”. To view the verified credentials of an Expert, click on the “Verified” symbol in the Expert’s profile. This site is not for emergency questions which should be directed immediately by telephone or in-person to qualified professionals. Please carefully read the Terms of Service.
Explore law categories
Powered by JustAnswer