Benjamin James Pty Ltd - Court action

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10 March 2011
Court actions

A Fawkner used car trader has been given a 12-month good behaviour bond for selling a car that still had more than $28,000 owing on it to a finance company.

Licensed motor car trader Benjamin James Pty Ltd pleaded guilty in Melbourne Magistrates’ Court in February to the criminal charge of failing to discharge the security interest on a vehicle – a breach of the Motor Car Traders Act 1986.

By law, licensed motor car traders must show vehicles have a clear title, meaning they’re not stolen, written off, or have money owing on them.

The magistrate released the company without conviction, but ordered it to pay $500 to the court fund as well as $250 costs.

In August 2009, Benjamin James Pty Ltd bought a 2003 BMW 320ci and agreed to pay $28,092 owed to a finance company by the seller. The company on-sold the car in the same month.

When the used car dealer had not paid the loan by 6 October 2009, the seller contacted Consumer Affairs Victoria, concerned they were still liable for the loan, which was also accruing interest.

Benjamin James Pty Ltd paid out the loan and interest totalling $28,717 in November 2009.