Consumer Rights Bill — New Clause 23 — Ownership of Goods With A Charge Against Them Due to A Bill of Sale Agreement — 13 May 2014 at 16:45

The majority of MPs voted against a proposal that if someone purchases something they become its owner even if it has a debt secured on it as a result of a bill of sale agreement so long as they buyer was unaware of the loan.

MPs were considering the Consumer Rights Bill^[1]. The text of the proposed new clause rejected in this vote was:

• ‘(1) Where a person is a purchaser of goods subject to a bill of sale, made in connection with a regulated agreement under the Consumer Credit Act 1974, in good faith and without notice of the bill of sale, title to those goods shall pass to that person.
• (2) A creditor is not entitled to enforce a bill of sale made in connection with a regulated agreement by recovering possession of the goods except through an order of the court.
• (3) If goods are recovered by the creditor in contravention to subsection :(2)—
• (a) the bill of sale will be treated as invalidly made; and
• (b) the debtor shall be released from any outstanding liability under the regulated agreement.
• (4) If the creditor has disposed of goods taken in contravention of subsection (2) the debtor shall be compensated to the value of those goods

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• [1] Parliament's webpage on the Consumer Rights Bill

Debate in Parliament | Source |