Logbook Loans Ltd are repossessing my brothers car

[locutus12]

The story:

Step brother buys a car (vauxhall vectra top of the range 170bhp) from a guy in a village, man in villiage bought off another guy 3 months previous but his wife fell pregnant with their 3rd child so they opted for a more sensible car and sold it on.

 

my step brother came to sell the car recently and it was HPI checked before the sale and found to have money owing on it from logbook loans. Logbook have now hunted my step brother down and are attempting to force him to pay £1600 claiming they own the car and he owes them money. also logbook loans Apr is 343.4% !

 

They have stated if he doesn't pay in full within 28 days they will take the car as they have ownership through the magistrates courts which would leave him and his family stranded. he offered them £500 as a good will payment and hopefully a quick method for getting shot of them but they refused.

 

they similarly will not discuss the details of the original amount of the loan, the length of time, the original person, nothing at all. all we do know is todays balance is 1600 which must mean it was a tiny amount left on the loan but after 343.4% interest its now £1600.

 

any help and advice is welcome.

[tomterm8]

Are they attempting to reposess the car via a "Bill of Sale"?

[locutus12]

Are they attempting to reposess the car via a "Bill of Sale"?

 

 

i havent heard it mentioned, they just insist that they have ownership of the car via the magistrates courts.

[tomterm8]

Ask for the magistrates court judgement, before allowing them to reposess the car.

 

To be honest, I am not aware of any provision for the magistrates court to award the ownership of someone elses car, without them being a party to proceedings.

[poppynurse]

I seem to recall that when a vehicle has outstanding finance and the owner (who is liable for the debt) sells the car on, that legal title to the vehicle cannot pass on with the vehicle. This leaves the buyer up a tree as he has purchased something that the seller had no right to sell and therefore cannot obtain legal title. I would seek a solicitors advice on this as a claim may be required against the person the car was purchased from, he in turn can claim from the seller who sold the car without title. Very messy

[tomterm8]

However, poppynurse, log book loans often use bill of sale as their particular form of security. If done properly, such a method will absolutly secure title in the creditor; however... it is difficult and expensive, and Log Book Loans generally FCUK's it up making the security instrument invalid.

[adagioofwight]

I seem to recall that when a vehicle has outstanding finance and the owner (who is liable for the debt) sells the car on, that legal title to the vehicle cannot pass on with the vehicle.

In the case of motor vehicles I am not sure that this is true. From

 

Consumer Advice Support Pack - Chapter 3

 

"By virtue of the Hire Purchase Act 1964 if you buy a motor car or motor bike on which the original owner has not paid off the hire purchase instalments, you may be able to keep it. However you must have bought the vehicle in good faith and you must not have been aware of the outstanding finance. You would not get title if the vehicle was stolen or subject to hire or lease agreement. Note that this rule only applies to cars and motor bikes. In the case of other goods, the finance company can take back the goods."

[tomterm8]

Log book loans very rarely use hire purchase; they use bills of sale as the security instrument.

[Fleeced73]

I wish the mods would realise there's nothing libelous about using the 'T' or the 'S' word in posts relating to Log Book Loans and their agents. They DO and they ARE and they wouldn't be paying thousands of pounds out in compensation to prevent cases from going to court if they weren't!

And there's about as much chance of them taking you or anyone else to task legally than there is them flying to the moon

[Rooster-UK]

Regardless of what you believe that Logbook Loans allegedly do or do not do, You cannot publicly accuse them of theft, nor can you accuse them of stealing.

To do so IS libellous and will always be moderated.

To allow it to stand would leave the site open to a possible libel suit.

This site could not afford to defend a libel case. The only money in the kitty comes from donations and there are precious few of them!

In an undefended libel action, this site would be forced to close down, which would leave 170,000 registered users high and dry: Something we are not prepared to do.

 

Only the courts can decide guilt and under British law, you are innocent until proved guilty.

Has any court yet heard the case involving your brother's car? Has the Judge declared them to be guilty of the theft of your brother's car?

 

Remember that our actions work both ways..... If Logbook Loans were to come here and post, accusing YOU of committing a crime, you would be extremely indignant and upset.

We would immediately moderate their post to remove any disparaging remarks about you.

It is vital that we maintain a level playing field.

 

Regards, Rooster.