Bailiffs and vehicles on finance, HP or contract hire.
Bailiffs may not clamp or remove Hire Purchase, or leased Vehicles to recover unpaid debts owed by the hirer of the lessor.
The law says the bailiff may only take control of the goods that belong to the debtor. [1]
The hirer can apply to the court for an emergency injunction [2] or for interlocutory relief. [3]
The hirer can claim interlocutory relief and damages [4] for the unlawful deprivation of the use of the goods together with his out of pocket expenses. [5]
When the injunction is served and the clamp is removed, the traffic contravention debts and the bailiffs fees being recovered are usually a lost cause for the bailiff. That doesn't mean you are off the hook, but it is financially untenable for the bailiff to continue with enforcement because he pays the legal costs of the injunction.
It is well established in law that a hirer’s property in the hired goods is limited to the right of possession under the terms of the Hire Purchase or leasing agreement. The hirer gains no proprietary right until the hirer exercises the right to purchase the goods until then, the property in the goods remain solely with the owner. [6]
A court found that debtors have no beneficial interest in Hire Purchase goods because bailiffs cannot sell them, nor can the bailiff approach the finance company to discharge the finance on the vehicle from the proceeds of sale any paying the remainder to the debtor. [7]
It is the practice of Marston Group Limited to clamp Hire Purchase goods under a pretence they can only immobilise goods without removing them, then defending an injunction on the basis the debtor behaved unreasonably. [8]
Any bailiff company that believes they can coerce a finance company is endangering the creditor or council (the authority) it represents because they are liable for the conduct of its bailiffs. [9]
The hirer of the goods may recover his costs for bringing an action for an injunction and for his damages. [10]
[1] Paragraph 10 of Schedule 12 of the Tribunals Courts and Enforcement Act 2007
[2] Paragraph 66 of Tribunals Courts and Enforcement Act 2007
[3] Section 4 of the Torts (interference with Goods) Act 1977
[4] Section 3 of the Torts (interference with Goods) Act 1977
[5] Section 3(5) of the Torts (interference with Goods) Act 1977
[6] Chitty on Contracts (32 ed.) ss39-307
[7] Mulwanyi v London Borough of Croydon and Newlyn Plc, Central London County Court, 7 Apr 2017
[8] Tandea v Marston Group Limited, Central London County Court, Jan 2020
[9] Preston v Peeke [1895] EB&E 336
[10] Civil Procedure Rule 46.5