They really are a curse!

I have posted a couple of times regarding the nightmare I have had with one of these companies.

With all the claims being made regarding Payday loan companies, I can't see any difference with these loans.

I really hope we get some sort of compensation for all we have gone through.

As with all these type of loans, once you've borrowed from them, it can be a vicious cycle, but in my case, when I first started until I finished not one credit check was made. They did an affordability check but how does that prove one's ability to pay. The desperateness of someones situation may mean they forget some debts or elevate their income etc. Easily done in the heat of the moment.

Great day when they are banned or compensation awaits!

http://www.consumeractiongroup.co.uk/forum/showthread.php?451921-Proposed-Protections-for-Logbook-Loans

 

 

September 9th, 2015

 

Unfair law fails to protect logbook loan consumers

 

Logbook loan borrowers have too little protection – and those who unwittingly buy cars subject to logbook loans have none at all.

 

Today the Law Commission opens a consultation to reform the archaic law underlying logbook loans – the “Bills of Sale Acts” – which remains unchanged since Victorian times.

 

Logbook loans are a way for borrowers to use their cars, vans and motorcycles as security for a loan. The borrower keeps possession of the vehicle and may continue to use it while making repayments. But if the borrower fails to pay, the lender is entitled to repossess the vehicle without a court order. Borrowers lose the vehicle they need and are often left with a large outstanding debt.

It does appear as though something might change, wakeywakey. The consultation ended December 2015 - hopefully it wont be too long before we hear what the outcome is.

http://www.lawcom.gov.uk/project/bills-of-sale/

Our consultation on this project ended in December 2015. We are currently analysing responses and developing our policy. Our final report (without draft legislation) will be published in summer 2016.

 

Yup, they should be banned, to take into account people becoming forgetful in their desperation.

Mind you, where is it the people who are desperate will then go?.

If they already had better options (such as credit unions), why are they going to PDL companies?.

I don't think the solution is to ban PDL's outright.

I think the solution is multi-fold, including

1) increasing credit union availability

2) reducing the amount set as a ceiling for APR. The PDL companies may say that some riskier lending may become unprofitable : good, as their affordability checking should be better.

3) increased penalties for the loan sharks to limit the risk people may turn to loan sharks. If they can't afford to take / repay a PDL, a loan shark isn't the answer....