If as you state it was security then the car legally belonged to the finance company until the very last payments were made. Therefore you (your Mum) have sold their car for which they could commence recovery proceedings although unlikely... against the party who now believes they have legally bought your car....this buyer should have run a HPI check first in their own interests to uncover the fact that the car they were about to buy still had outstanding finance. !

If you're (or Mum) unable to raise the capital to clear the outstanding finance then all is not lost yet. if you contact the finance co being open and honest about your innocent misunderstandings and explain that you will fully honour the re-payments whilst looking into the chances of borrowing enough to clear the balance, I am sure they would be more willing to accept such an arrangement, rather than being unreasonable or trying to enforce any recovery action for outstanding amounts that you clearly cannot pay.

They may either accept this as long as payments are made, or at least until such time you could raise the finance from another source to clear the full outstanding balance...but at the end of the day though the choice over which action to ultimately take is in the hands of the finance co.

I need advice:

I pay 110.00 every month to capital bank-Bank of Scotland finance for a car bought from Arnold Clark 2 years ago, the finance is in my Mums name, The vehicle has now been sold and as i had another loan which was of higher interest i paid this one off and continue to pay this one monthly as i thought the finance was in my mums name only.

They have now contacted me 6 months after selling the car to say that as the car has been sold we need to settle the account in full, They have said the finance was secured against the car which i didnt know! i thought it was just like a personal loan, I cant obtain credit anymore and cant afford 3500.00 at once! and want to know where i legally stand as its fustrating that i can afford to continue paying this monthly but just cant afford to pay it all and im not in a position to get credit to pay it off or for someone to get a loan for me and i end up paying more interest and getting moyself into more debt, Bank of scotland are not being very helpfull and are infact ringing me every day demanding money which has got me in a panic as they are also threatning to repossess the car which would be a massive embarrassment, i have asked them to give me a couple of days to figure out if i can afford to do anything or ask my family to help.

Please can you offer me advice on where i legally stand or just any advice at all.