Hi

I stupidly took out a logbook loan for 1200 last year.

I lost my job in February this year and have been struggling to pay.

I have missed a couple of payments altogether and they agreed to put the amounts to the end of the term.

I now have a massive problem.

Last week the auto gearbox on my car failed.

The cost of repairs is more than the car is worth.

I can't sell it on as they have the log book and they have refused to reposess it (they said they do not recover vehicles that are not roadworthy).

Where do I go from here?

I can't afford to keep your the ridiculously high repayments and can't afford to fix it. Meanwhile it's sat outside my house costing me money for tax and insurance.

"Meanwhile it's sat outside my house costing me money for tax and insurance."

You could move it off-road, and declare it SORN.

Whilst this won't help with the logbook loan, at least you can stop paying out for tax & insurance.

What does your pre contract information

say about voluntary surrender of the asset?

Post it up minus personal info

Unfortunately I can't move the car off road as it's stuck in gear and can't be moved. The rac towed it to my home address and just dumped it on the road.

I'm not sure where my previous contract info is I've had a look for it but can't find it. Can I ask them to resend it?

You need to obtain a copy

Ask, but SAR if necessary

Hi I have found all the documents given to me on the day I took out the loan. It doesn't mention on the pre-contract info anywhere about voluntary surrender. I have found it on another document titled what you can expect from us. It states "until we have terminated the loan agreement you may return the vehicle to us in full settlement of the debt to us, provided that instructions have not already been issued to an authorised person to recover the vehicle and you act in good faith and the vehicle has not been maliciously damaged."

I have paid to date 985.21 of the 1250 borrowed.

so I emailed varooma asking them to accept the car in full and final settlement. I was honest about the fact that it's broken down and they have now given me 5 days to get a mechanics report. do I have to do this? or should they just accept it?

thanks

you need to read and formulate a formal complaint centered around the CCTA code of practice

especially section 4.3

see the logbook loan sticky for the link