Credit Today - Dickensian’ logbook loans face the axe

[babybear39]

"The government is to ban the use of "Dickensian" bills of sale as part of its review of high-cost credit.

 

Consumer minister Kevin Brennan today announced plans to ban the law, which he said was "outdated". A consultation on the issue has been launched.

 

Bills of sale are contracts typically used for ‘logbook’ loans which are secured against the value of the consumer’s car. Under the agreements, if a consumer defaults on the loan the creditor can repossess the car and pursue the shortfall without first securing a court order.

 

Brennan said:"These bills of sale are archaic and allow vulnerable peoples’ goods to be seized without a court order. They were developed in the days of Charles Dickens and don’t meet 21st Century consumer standards."

 

The number of registered bills of sale has risen over the years with nearly 40,000 made between April 2008 and March 2009. This equates to around £30m in loans to consumers. More than 1,000 consumers have complained about problems with these loans. Complaints relate to the lack of protections available to people if they fall into arrears, unfair collection practices, the complex and confusing nature of the language used in the agreements and the excessively high cost of the loans.

 

The Finance and Leasing Association said the tool is not used by many of its members. "The vast majority of specialist motor lenders provide secured finance where the lender is the owner of the vehicle until the customer has made all repayments due under the agreement. So bills of sale are not a mainstream motor finance product," said spokeswoman Helen Saxon.

 

The consultation on bills of sale was first announced in the July consumer White Paper and is available at www.bis.gov.uk/consultations"

[Huff&Puff]

Another article here:

 

'Logbook loans' to be outlawed | Money | guardian.co.uk

 

I'm very pleased to hear it too, if extremely surprised at this government actually doing something which might help the ordinary person

[babybear39]

It'll probably take ten years to hit statute though

[angry cat]

I wish this Gov. would get their finger out; they won't though, will they?

 

Start praying that they are not re-elected!

[babybear39]

I already have... lol

[Seminole]

If it requires primary legislation (i.e. a bill to pass through the Houses of Commons and Lords) then there's not a hope it will happen before the election.

[angry cat]

Didn't George Osborne state recently, that the tories would dismantle the OFT if they are elected.

 

FSA;

OFT;

Trading Standards are;

out of date and out of step...the Gov. will not fool the electorate with their pre-election spin.

[Seminole]

There's certainly a need for a consumer protection watchdog with teeth that's not in the pockets of industry groups. The FOS, FSA and OFT are certainly not fit for purpose. I do, however, think that Trading Standards, whilst variable from local authority to local authority, are generally OK.

 

To be fair to the Govt (and I hate being fair to them), the reason why any legislation is likely to fail is that all pending bills fall if an election is called. It's quite possible for it to be re-introduced if they won the election.

[angry cat]

by seminole:

" I do, however, think that Trading Standards, whilst variable from local authority to local authority, are generally OK."

 

What!?

 

"To be fair to the Govt (and I hate being fair to them), the reason why any legislation is likely to fail is that all pending bills fall if an election is called. It's quite possible for it to be re-introduced if they won the election."

 

Good God, I and the majority of the country pray that they are NOT re-elected.

[Seminole]

 

Good God, I and the majority of the country pray that they are NOT re-elected.

 

Me too, believe me.

[count orlok]

Me too, believe me.

 

I pray to all gods that the tories do not get in again, it is bad now but imagine it as it is now but with twice as many out of work and interet rates 30 time higher. To say nothing of the destruction of coal and british industry.

 

Labour may be in the bankers pockets, but the tories are the bankers.

 

I say bring back the wigs.

[lickthewallfatboy]

they are both 2 sides of the same coin,beieve me it matters not which gets in

Zanulabour are social engineers of the Marxist socialist genre-that's why I absolutely despise them

 

Especially that witch Harperson

[Seminole]

OK I'll bite.

 

Labour will leave office with unemployment much higher than when they entered it (including youth unemployment currently just under 1m) and after a recession that has now officially been going on for 18 months. They inspired a credit boom, creating illusory wealth and the inevitable crash has nearly bankrupted the country.

 

Coal went years ago and manufacturing industry now is much smaller than when the Conservatives let office.

 

Oh, it's Whigs by the way.

[angry cat]

I pray to all gods that the tories do not get in again, it is bad now but imagine it as it is now but with twice as many out of work and interet rates 30 time higher. To say nothing of the destruction of coal and british industry.

 

Bl**dy Hell, Labour sold the countys Gold;

they securitized and sold the student loan book etc;

the country was hours away from being insolvent.

 

I had better not say more, or the CagBot will get me?

 

Count Orlok, you may be parying on your own...

 

GRRRRRR!

[angry cat]

2 Caggers viewing this thread plus 19 guests...

Hit a raw nerve, perhaps?

[babybear39]

Nah probs CT complaining 'cos I posted thier press release verbatim

 

*BB waves at CT and reminds them that press releases are exactly that *