The managers of a company that sold a car to an Aberdare woman that was repossessed from her because it had outstanding finance on it, have been prosecuted by Rhondda Cynon Taf Council.
Trading Standards officers launched an investigation after being contacted by a lady who bought a 55-reg Citroen C3 from One Direction Cars in Canal Road, Cwmbach, in May 2014.
She said at no time during the sale was she informed the vehicle still had outstanding finance on it. It was only when she was contacted by a company called Mobile Money, some months after she had bought the car, demanding the £900 outstanding payment.
Initially, Mobile Money gave the lady the chance to sort the matter out with One Direction cars, but nothing was resolved. Mobile Money told her that One Direction Cars were refusing to pay the outstanding amount and she needed to pay it or the vehicle would be repossessed. It was eventually repossessed.
Following the complaint, Trading Standards officers were initially told Tahir Karim, who effectively ran One Direction Cars, was in the process of sorting the matter out. Officers carried out an HPI check which revealed the car had money owed to Mobile Money from 2013.
Letters were sent to One Direction Cars’ offices in Cwmbach, Zaher Tarim, 35, the Director and Tahir Karim, 45, by Trading Standards officers, inviting them to attend an interview.
An unsigned response came back from Tahir Karim, stating he had left employment with the business in November 2014, but claiming he could still speak out on behalf of the business.
He went on to explain that the garage carried out HPI checks, but not on older vehicles. He said there was no HPI check on this car as they bought it in a state of disrepair from a car dealer, who had bought it direct from the first owner.
They had bought it in good faith as they had bought other cars from the dealer and said they were unaware of the outstanding finance.
He said that following the complaint from the latest buyer, he did contact Mobile Money, who asked for payment of £900 and he asked for proof of the outstanding finance. On that basis, they did not pay the money as they needed proof and an invoice to pay it.
He also accepted that he was aware that it was an offence to give the impression something could be legally solved when it could not.
He also confirmed the garage now undertook an HPI check on all vehicles.
The investigating officer sent a follow-up letter with supplementary questions, but Tahir Karim failed to respond.
On January 7 this year, One Direction Cars Ltd, Zaher Karim and Tahir Karim admitted one offence under the Consumer Protection from Unfair Trading Regulations 2008.
The company was fined £400 and ordered to pay costs of £200 and £40 victim surcharge. Tahir Karim was fined £300 and ordered to pay costs of £200 and £40 victim surcharge. Zaher Karim was also fined £300 and ordered to pay costs of £200 and £40 victim surcharge.
Compensation for the complainant was not sought on the basis that the bank had already refunded her the money for the vehicle, although the bank may seek to recover the money from the defendants.
Paul Mee, Director of Public Health and Protection at Rhondda Cynon Taf Council, said: “This is not the first time we have had to deal with this company as a result of complaints from customers and I hope this case once again reassures consumers that we do take offences seriously and will investigate and prosecute where appropriate.
“Residents have the right to be able to purchase high-quality, safe and legal vehicles from trusted dealers. To be sold a vehicle that is later repossessed as it has outstanding finance on it is just not acceptable.
“Our advice to residents is to always ensure they buy from a trusted dealer and to ensure they check the terms and conditions of the sale before signing any contract. Check HPI paperwork and, if necessary, bring in a third party professional to undertake a check for you, so you are clear on what you are purchasing.”