Know your rights This week: Goods’ history

THINGS can get tricky when you buy goods without knowing their history.

A reader called William contacted me about a Ford KA he bought from a dealership.

He received a letter from a loan firm five weeks after buying it, stating they had a claim on the car.

They said the previous owner – not the dealership – took a loan out and put the car up as security. The loan was in default.

William contactedthedealership and they claimed to know nothing about it. They said it was down to him to carry out searches to check for issues.

The dealership is wrong. Section 17 of the Consumer Rights Act 2015 states traders must have the legal right to sell goods and that goods sold must be free from charge or encumbrance. So there must be no security held over them.

William is entitled to reject the car and demand an immediate refund.

If you are buying a second hand car and want peace of mind, you can carry out an HPI check. They are relatively cheap and highlight if the vehicle is the subject of any finance agreement.