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HP firm proves once bitten, twice blind

1st July 2004, Page 33
1st July 2004
Page 33
Page 33, 1st July 2004 — HP firm proves once bitten, twice blind
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Which of the following most accurately describes the problem?

A FINANCE COMPANY which -turned a blind eyeto a regular customer's lack of an 0-licence has lost its bid to have an impounded vehicle returned.

This was the second time that Finance & Leasing (London) had applied to Eastern Traffic Commissioner Geoffrey Simms for the return of a vehicle belonging to its customer Simon Murton, trading as MET Transport. The previous application had succeeded.

Last October Murton was convicted by Ipswich magistrates of using a vehicle without a licence. That vehicle was subsequently impounded but in December Simms returned it to Finance & Leasing because he accepted the firm had not known it was being used illegally. Timothy Garner, a director of Finance & Leasing, said the firm had agreed hire purchase for Murton to buy a second vehicle in June 2003. Murton had given a fictitious 0-licence number, subsequently shown to be false by the impounding of the first vehicle.

The company had faced a problem regaining possession of the second vehicle, because it was a regulated agreement for less than £25,000 and the purchaser was an individual. Finance & Leasing had returned the first vehicle to Murton who had then hired it to a licensed operator with a margin.

Murton claimed that the second vehicle was under repair and would be sold when roadworthy.

However, the TC said Finance & Leasing knew in October 2003 that Murton did not have an 0-licence, and also knew of his deception to obtain the hire purchase agreement. The company had turned a blind eye to the obvious.

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Locations: London

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