Motor Car Traders Act 1986

Upon any application to the Magistrates' Court or the Tribunal for an order for rescission, the Court or the Tribunal, after hearing the applicant and affording any other person likely to be affected by any order made under this section an opportunity of being heard—

may order that the sale be rescinded; and

may make such further or consequential orders (including an order as to the payment of the costs of the application) as are necessary or desirable.

The power to make further or consequential orders conferred on the Court or the Tribunal by subsection (1) extends to the making of orders concerning any collateral credit agreement.

In making orders under subsection (1), the Court or the Tribunal must so far as is possible apply the following principles in the following order—

that there should be returned to the purchaser any money or other consideration paid or provided by the purchaser under any agreement for the sale (not being money or other consideration obtained by the purchaser under a collateral credit agreement associated with the sale for the purpose of being so paid or provided);

that, if any person has provided finance under any collateral credit agreement associated with the sale (in this section called a lender)—

there should be returned to the lender any money or other consideration paid by the lender by or on behalf of the purchaser; and

the collateral credit agreement should be discharged to the extent that it was entered into for the purposes of purchase of the motor car;

that, if a motor car trader acted on behalf of the vendor in the making of the sale, the vendor should be indemnified by the motor car trader against any loss suffered by the vendor in consequence of the rescission;

that the lender should be indemnified by the vendor or any motor car trader who acted on behalf of the vendor (as the case requires) against any loss suffered by the lender in consequence of any order made concerning the collateral credit agreement but not exceeding the amount of the interest that has accrued under the collateral credit agreement;

that the motor car should be returned to the vendor or, if there is a collateral credit agreement secured by a mortgage.

if the motor car is in the purchaser's possession, that the motor car should be delivered to the lender; or

if the lender has possession of the motor cars or obtains possession by an order under this section, that the lender should be entitled to retain possession until the lender has been paid the amount for which the vendor is liable to the lender under paragraph (d).

Upon an order rescinding the sale being made, the rights and obligations of the parties to any agreement relating to the sale or under any agreement relating to a collateral credit agreement associated with the sale shall be as provided for in the order or in any order ancillary to or consequential upon that order but it is not a bar to the making of an order that the parties cannot be fully restored to the positions that existed prior to the sale.