Recovering money from Tenant

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    Recovering money from Tenant

    I had a family of three adults two parents and an adult son. They initially paid 6 months in advance, as they had sold a property, to my agent and I received my rent monthly. The agent served a section 21 notice on them to vacate at the end of the 6 months AST. They wanted to stay on a bit longer as they said they were waiting for a council house (All were apparently on benefit of some sort, disability, unemployment and possibly housing). I agreed to them staying on a month to month basis. The first payment due was not paid neither was any subsequent one. They ended up three months in arrears. So a section 8 notice was served, incorrectly as I found out from Landlord Action, and they eventually moved out only last week owing me about £1500. My agent has a secure bond of £595 which will go towards the cleaning of the property after it was inspected when they left and it was found they had been smoking in the house against the tenancy agreement. The tenant said he would pay me when he sells his mobility car. I have the registration number and photo of the car. It is probably worth about £3000 at most. I have since found from my own online checks that he has a CCJ for £677 issued at Northampton CCBC and that's it an unsatisfied judgement (meaning it is unpaid). Also that the house he sold went for £28,500 less than what he paid for it indicating it was probably repossessed.

    To get to my question, if I take him to the small claims court the only asset that I can see they have is the car, if he sells that he will need another one anyway probably at less value, is there any way I can either stop the car from being sold without it first being offered to me to go towards his debt or possibly take my agent to court for not doing a thorough enough credit check, not serving a valid Section 8 notice or informing me that they didn't have any means of income (They did consult Equifax and it came back as OK but I wasn't told that they would be on benefits only)on the T?
    They have now moved in to another property ironicaly no doubt paying a month in advance and another bond!

    #2
    "Motability" cars are usually leased - are you sure your ex-tenant actually owns his?

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      #3
      Recovering money from Tenant

      Good point, as you say Motability cars are usually paid for with their disability allowance/benefit. How can I find out though, I have to assume that he paid the majority for the car upfront as he did the rent and now owns the car, or at least can sell it for a new Motability car arrangement. I'll check on what the conditions are with Motability leasing.

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        #4
        As Snorkerz said, Motability cars are leased. I'm fairly certain there is an option to buy the car after the lease period ends (3 years I think). If he had bought it, I would be unlikely that he would continue to refer to it as a Motability car. Based on that, it seems they do not own the car.

        I'm not sure how the cars are registered with the DVLA, whether it is at the address of the Motability scheme or with the driver of the car. If possible, it may be worth checking with the DVLA to see who owns the car.

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          #5
          Recovering money from Tenant

          Hi, Yeh the Motability deal can be the following:

          "Hire purchase

          Hire purchase enables you to buy the car you want. This can be a new or used car. You are responsible for negotiating the purchase price of the car with the dealer and arranging insurance cover. At the end of the hire purchase agreement - which can be between three and five years - you will own the car."

          How can you check with the DVLA who owns the car? Surely only the police can find this out?

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            #6
            Originally posted by merlin34 View Post
            Hi, Yeh the Motability deal can be the following:

            "Hire purchase

            Hire purchase enables you to buy the car you want. This can be a new or used car. You are responsible for negotiating the purchase price of the car with the dealer and arranging insurance cover. At the end of the hire purchase agreement - which can be between three and five years - you will own the car."

            How can you check with the DVLA who owns the car? Surely only the police can find this out?
            In my experience the police and motor insurance companies can access the DVLC computer, but not private individuals. However if it is in connection with a legal claim against a vehicle owner, you'd think you could get round the DPA and insist they told you, wouldn't you?
            'Pause you who read this, and think for a moment of the long chain of iron or gold, of thorns or flowers, that would never have bound you, but for the formation fo the first link on one memorable day'. Charles Dickens, Great Expectations

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              #7
              Originally posted by mind the gap View Post
              However if it is in connection with a legal claim against a vehicle owner, you'd think you could get round the DPA and insist they told you, wouldn't you?
              IIRC the DVLC have a form V888 which should give this information - however, I think they only hold details of the "Registered Keeper" who isn't automatically the owner.

              Comment


                #8
                Originally posted by merlin34 View Post
                Hi, Yeh the Motability deal can be the following:

                "Hire purchase

                Hire purchase enables you to buy the car you want. This can be a new or used car. You are responsible for negotiating the purchase price of the car with the dealer and arranging insurance cover. At the end of the hire purchase agreement - which can be between three and five years - you will own the car."

                How can you check with the DVLA who owns the car? Surely only the police can find this out?
                I wasn't aware of this arrangement. It is far more common to lease the car from them for a 3 year period, after which it goes back to them and you can choose a new car to lease for another 3 years.

                If he has the arrangement you have detailed above, he will probably have to wait until he takes formal ownership of it to sell it. If it was a second hand car, I doubt he will get very much for it so it may not be worth pursuing him based solely on the car's future value.

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                  #9
                  Originally posted by roryl View Post
                  I wasn't aware of this arrangement. It is far more common to lease the car from them for a 3 year period, after which it goes back to them and you can choose a new car to lease for another 3 years.

                  If he has the arrangement you have detailed above, he will probably have to wait until he takes formal ownership of it to sell it. If it was a second hand car, I doubt he will get very much for it so it may not be worth pursuing him based solely on the car's future value.
                  However, the good news is that if you do have to pursue him, he probably won't be going very fast
                  'Pause you who read this, and think for a moment of the long chain of iron or gold, of thorns or flowers, that would never have bound you, but for the formation fo the first link on one memorable day'. Charles Dickens, Great Expectations

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                    #10
                    I would still pursue the ex-T for the debt. If you obtain a CCJ, it can be enforced up to six years later.

                    Comment


                      #11
                      Originally posted by merlin34 View Post
                      or possibly take my agent to court for not doing a thorough enough credit check,
                      What credit check did they say they were going to do, and were you not happy about the credit check before they got in arrears?

                      Originally posted by merlin34 View Post
                      not serving a valid Section 8 notice
                      If you paid for this service, then I would believe that you are entitled to the return of your money, and compensation to the amount you lost in the intervening time for a valid one to take effect.

                      Originally posted by merlin34 View Post
                      or informing me that they didn't have any means of income (They did consult Equifax and it came back as OK but I wasn't told that they would be on benefits only)on the T?
                      Were you not aware that they were paying 6 months in advance?

                      Originally posted by merlin34 View Post
                      They have now moved in to another property ironicaly no doubt paying a month in advance and another bond!
                      Why is it ironic?
                      Allow tenants to protect their own deposits. I want free money when they do it wrong

                      Comment


                        #12
                        [QUOTE=merlin34;219032][QUOTE=thesaint;218389]What credit check did they say they were going to do, and were you not happy about the credit check before they got in arrears?
                        The agent uses Equifax and there were no adverse comments on it. I can only take the agents word for that because I am unable to see it due to the Data Protection Act. The check was done in September last year and I found out they had a CCJ against them in December only 3 months later, too late to show up on the credit check.


                        If you paid for this service, then I would believe that you are entitled to the return of your money, and compensation to the amount you lost in the intervening time for a valid one to take effect.
                        I didn't need to have another one issued, as the tenants moved out before another one was needed.


                        Were you not aware that they were paying 6 months in advance?
                        Yes, as I was told they had sold their house. But it turns out the house went for nearly 30K less than what they paid for it originally, a 30% drop in value in 2 years!


                        Why is it ironic?
                        Because they have managed to obtain another rental property by paying a bond, a months rent in advance and not getting a reference off me or my agent to say they were in arrears.
                        They are also claiming benefit from the Council for LHA, which I was not aware of from my agent, I thought they had capital from the sale of their house and were looking to downsize. The benefit was paid direct to them, had I known then I would have asked for them to get the benefit paid direct to my agent.

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                          #13
                          Originally posted by merlin34
                          Why is it ironic?
                          Because they have managed to obtain another rental property by paying a bond, a months rent in advance and not getting a reference off me or my agent to say they were in arrears.
                          They are also claiming benefit from the Council for LHA, which I was not aware of from my agent, I thought they had capital from the sale of their house and were looking to downsize. The benefit was paid direct to them, had I known then I would have asked for them to get the benefit paid direct to my agent.
                          I'm still not sure this satisfies any of the normal definitions of 'irony'.

                          Craftiness, perhaps.
                          'Pause you who read this, and think for a moment of the long chain of iron or gold, of thorns or flowers, that would never have bound you, but for the formation fo the first link on one memorable day'. Charles Dickens, Great Expectations

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                            #14
                            Well they're the ones in another rented house and I'm out of pocket. If you have no assets and are on benefits what is to stop you doing the same thing over and over again?

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                              #15
                              Originally posted by merlin34 View Post
                              Well they're the ones in another rented house and I'm out of pocket. If you have no assets and are on benefits what is to stop you doing the same thing over and over again?
                              Thorough refererencing procedures on the part of LLs?
                              'Pause you who read this, and think for a moment of the long chain of iron or gold, of thorns or flowers, that would never have bound you, but for the formation fo the first link on one memorable day'. Charles Dickens, Great Expectations

                              Comment

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