Car with Finance, Seller Says All Been Paid off, PPSR Still Showing Interest

npnp on 19/02/2020 - 06:17
Last edited 23/02/2020 - 09:39 by 1 other user

Update: Finally PPSR is now cleared. Like many of you have suggested, bank took its sweet time to clear things up. Luckily for me the seller was a genuine guy, things could have been much worse given how stupid I have acted paying off someone else's personal loan without double checking. A good lesson with a happy ending.. Again, I really appreciate all your responses, mean a lot.

TLDR: Bought a car with finance owing, loan was paid off at the bank, PPSR still showing the record after a week.

Detailed version:
Bought a car with a bank security interest on it, went to the bank with the seller and settled it (using my money), the car was transferred straightaway.

I did PPSR check later that day, no change, rang the bank with no luck so I contacted the seller.
He said that the bank advised it'll take 48 hours. Okay, I waited, but even after a week, still same record, nothing has changed.

Then seller sent me a photo of the letter of discharge but it didn't mention about the car at all, instead, it was a settlement letter of a personal loan. He says the car was later refinanced as a personal loan.

The matter is still pending as the seller is going through some personal stuff apparently. He seemed genuine and still responding to my messages trying to sort things but I feel like it's going nowhere.

I visited the bank number of times but they wouldn't disclose any information without the account holder.

Has anyone gone through such a scenario and is there any way out of this drama? Can seller be genuine or have I been scammed? What are my options and steps to follow to cover myself?

Another question: if a personal loan is secured with an asset, will the discharge letter be specific on that asset as well or will it be a generic discharge letter without any mention on the asset. I think in the current situation, that's the most important question I need answers for.

Notes:
1) Personal Loan letter is from the same bank as PPSR record and addressed to the same person
2) Seller is the first Owner

I really appreciate your kind help. Thanks.

Automotive

closed Comments

  • garetz on 19/02/2020 - 06:59
    +2

    Yes, never buy a car with finance owing under any circumstance.

    He could of just transferred it to an account with the loan attached to it and paid off nothing.
    Could of then used the money to discharge a different personal loan and sent you a settlement letter to that effect.

    The way you cover yourself is you do not buy a car with finance owing under any circumstance, now you may be liable for that debt as well.

    Looks like you dun goofed unfortunately.

    • npnp on 19/02/2020 - 07:26

      What are my options here may I know? Is there any place that I can go to confirm what seller is saying is true or not?

    • Skramit on 19/02/2020 - 08:15
      +5

      That's not entirely true. You can buy a car with finance owing when you pay direct to the finance company where the money is owed to. This is common.

      • garetz on 19/02/2020 - 08:38

        You are paying on behalf of someone else, you dont know what the finance company will do, also the original owner might say the payment is a mistake, and get a refund directly back to themselves.

        You are never 100% safe.

        • Skramit on 19/02/2020 - 08:45
          +8

          I think your tin foil hat is a little tight. There's always risks, that's true, but I'm just saying it's still fairly common and a safer method to pay direct to the finance company than direct to the seller. Most good finance companies offer specific processes for doing this safely.

          • garetz on 19/02/2020 - 08:50

            @Skramit: Why take the risk, there is always something else you can buy, you are basically dealing with someone who cannot manage their finances. You are better off not putting yourself in that situation.

            Even if it works out 99 out of 100 times, there is always that 1 time, and it could be you. Buying a car isnt a few hundred dollars, you are betting a large chunk of change.

            • Skramit on 19/02/2020 - 10:08

              @garetz: I agree it adds risks to the purchase, I would certainly want an iron clad process for doing this before proceeding if it were me. But I'm simply pointing out it's a fairly common practice. Each to their own to make a judgement call.

  • t_c on 19/02/2020 - 07:11
    +1

    When buying at auction, they will often say it can take a week or 2 for the finance companies to clear the ppsr, so there's still hope.

    • npnp on 19/02/2020 - 07:26

      What are my options here may I know? Is there any place that I can go to confirm what seller is saying is true or not?

  • shaz0316 on 19/02/2020 - 07:58
    +4

    Paid the wife's car off a few months back-pprs took 2 weeks to clear- I think that's the norm.

    • npnp on 19/02/2020 - 08:12

      Thanks heaps for that mate.. Slightly releifed but still not entirely sure due to the personal loan drama. Any comments on that? Can bank actually release a personal loan with security held on it? In that case would the discharge letter be specific about the asset or will it be a generic letter just like any other personal loan discharge letters.

      • RockyRaccoon on 19/02/2020 - 08:37
        +2

        Son did same thing with a motor bike, and the finance company advised that it would take 2 weeks for it to be updated, so he wasnt surprised that it took that long.

        Just keep your original PPSR certificate and and your receipt from the bank (which should match etc) and you will be ok. Might at worse have some chasing up to do, but unlikely.

  • Skramit on 19/02/2020 - 08:20
    +7

    Give it another week or two. It'll probably clear. Try to stress less.

    • npnp on 19/02/2020 - 08:33

      Thanks for your kind words, that means a lot to me in this situation.

  • M21 on 19/02/2020 - 08:59
    +2

    There should be an email address or contact details of the financier (usually straight to their PPSR team) on the PPSR search. Email them directly requesting the charge to be removed with a copy of the discharge notice provided to you by the seller.

    • npnp on 19/02/2020 - 09:52

      Great idea. can't believe why I didn't do it earlier. I was freaked out and wasn't in clear mind I guess. Just sent an email, fingers crossed.

      • M21 on 19/02/2020 - 10:53
        +2

        Too easy, just to add to this, the removal of a PPSR charge is near instant - once actioned by the financier. Getting the financier to action a request to remove the charge is the part that takes 2 weeks.

  • ykwon10 on 19/02/2020 - 09:02
    +2

    Yea, done that. Not to worry, it does take awhile to be reflected on PPSR

  • dTer on 19/02/2020 - 10:24
    +1

    I've bought a car with a PPSR record on it. Paid off for the majority of the car at the bank, with a letter from the bank on the same day saying that there was no more owing on the vehicle.

    PPSR records took about 2 weeks to show this. It'll clear, don't worry.

  • Typical16-bitEnjoyer on 19/02/2020 - 10:39
    +1

    Most banks have a department you can call for this exact type of transaction and enquiry.

    In future, don't trust the buyer. Call the bank with the details and ask for a payout summary and discharge advice before buying. Pay directly and adhering to that summary within the timeframe.

    In the meantime, keep the car locked up until the PPSR clears :)

  • HighAndDry on 19/02/2020 - 11:17
    +2

    Notes:
    1) Personal Loan letter is from the same bank as PPSR record and addressed to the same person

    Not saying this is probable, but did you just pay off the guy's personal loan and give him money for a car that's still under security for another, separate, car loan?

    Because if the car loan was refinanced to a personal (unsecured) loan, the PPSR registration should've come off at that time - because "unsecured" means there's no security.

    As others have said though, a week is too soon to be worrying.

    • npnp on 19/02/2020 - 12:04

      Is there any way of differentiating a discharge letter for a personal loan with a security interest from a one without? Or are they basically the same? I think I will find out soon enough but I would have thought the chances of getting an unsecured personal loan from a bank where you already have a car loan with would be very difficult for an ordinary person. Or is it not that challenging?

      • HighAndDry on 19/02/2020 - 12:07
        +1

        It depends - the person's financial situation might've improved and the difference might just be higher interest.

        And yeah, not to scare you because it might just be on a separate document, but a PPSR discharge statement has the term "PPSR" all over it.

        • npnp on 19/02/2020 - 12:57
          +1

          Not a single word regarding PPSR or anything about the car let alone any sort of security. Looks like an ordinary personal loan discharge letter. Hmmmm.. I'll find out soon anyways, will keep you all updated. Thanks for everyone's kindness.

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