Goods on Hire Purchase

Goods acquired under a hire purchase or conditional sale agreement where legal ownership has not yet passed to the debtor. Because the debtor does not own these goods, they cannot be seized by enforcement agents under a writ of control or warrant of control.

In practice

When attending a debtor's premises, enforcement agents must ask whether any goods are subject to hire purchase or conditional sale agreements. The debtor should be able to produce documentation proving the finance arrangement. If in doubt, the agent should not take control of goods that may be subject to outstanding finance, as doing so could expose the agent and creditor to a claim in conversion.