lukeyboy1 vs LogBook: Help

[lukeyboy1]

Hi.

 

Long story: I took out a loan away back in May, when I was slightly screwed financially. I now completely regret it, to say the least - and have been trying to get funds together to settle it.

 

Asked in Nov 2010 for settlement figure. It came back as £2,019. Two months later, my new settlement figure is 1934. This is just shocking : only 67 pounds difference!

 

Here's my email to LBL. I'll let you know how I get on: luckily, I can afford to settle it, so it'll sort itself out: but I don't like being held to ransom by a bunch of loansharks.

 

Any advice / help is much appreciated at this stage.

 

----------------------

 

Dear Sir,

 

With regard to my loan with you, taken out in Edinburgh, reference : XXXXX

 

I find it very surprising that my calculation, despite payments of 618.00, has resulted in a reduction of my redemption amount by only the amount of £76.92. ( see below).

 

I refer to my previous request of 12/11/2010 for an early settlement figure, which was given as £2,019.60. See the attached spreadsheet for a calculation of what I believe to be the true settlement figure.

 

This would appear to be completely incorrect, in terms of my understanding of the loan, and also in terms of what has been said in the loan documentation. I understood that the early redemption would the balance plus one months interest (10%).

 

Therefore, I require:-

 

* A full statement of account, showing all payments made.

* A full calculation of my early redemption amount - NOT just a leaflet showing the calculation.

 

I require this within 7 working days. As I'm sure you are aware, I'm entitled to a full statement of account under the terms of Consumer Credit Act.

 

I am very unhappy, and I am considering reporting you to the Office of Fair Trading. I believe that the extra interest (in the amount of 541.08 over two months to be an unfair penalty charge, and I am unwilling to pay this - it is clearly incorrect).

 

In the meantime, I've today made a payment of £1200.00 to my account, pending resolution of this issue.

 

Since this loan originated in Edinburgh, I've copied in Edinburgh City Council Trading Standards for their information. If I do not receive a satisfactory response, I'll have no hesitation in making a formal complaint to you.

 

Yours Sincerely,

XXXX

[lukeyboy1]

I got a response with a "statement" of account. Basically, it said that they couldn't supply the calculation as it was done automatically.

 

EDIT

 

I'm going to sue. I don't care....!

 

Anyone got any advice for me?

Edited February 3, 2011 by caro
Potentially libellous comment removed

[caro]

Can you confirm if you have paid off the full amount they say that you owe?

 

If not then I should warn you that they are likely to keep adding interest and if you don't pay will more than likely try to repossess your car.

 

I fully understand where you're coming from, but you might want to consider keeping your car somewhere secure away from your home.

[Hip_Hop]

Hi Lukeyboy1,

 

Could you provide some further background info for clarification?

 

Without it , it is difficult to get the true position.

 

It would be helpful to know the interest rate applied to your loan, the fixed term, loan amount and the loan arrangements i.e charges/interests that can be levied etc?

 

Why not paste a copy of your agreement with your personal details removed. This would detail the actual agreement that you entered in to with this company, rather than just your interpretation of the agreement, made between the parties?

 

Most lenders of last resort which this company is no doubt one of, offer Log Book loans generally at exorbitant, exploitative rates of c 460% or more . Therefore without knowing the full terms, the starting position and any payments history, it is difficult to assess what if any of the outstanding balance would be realistically repaid, in just 2 months?

 

You will no doubt concur, that without these details, to the readers of this thread, any assumptions/ calculations arrived at are, to all intent and purpose meaningless?

 

Posting your agreement details anonymously, will provide some of these details including the weekly repayments, terms, including penalty charges details etc. All very helpful information to get a greater understanding of your true position.

Also telling us whether you missed more than one payment and establishing what if any further penalty charges have been applied to your account for doing so? All, no doubt, provisioned for in your agreement?

 

As you know, you did previously post last September that you were going to have to miss a weekly payment . You didn't go on to say whether you did or did not? If you did miss a payment, your balance at the time of asking, would probably have incorporated a penalty charge too as a consequence?

 

It concerns me, the fact that you offered a partial large lump payment to a log book loan company, which appears not to completely have settled the total outstanding liability? I assume you made this payment without recourse of looking at the agreement first?

 

I ask, as not wishing to scaremonger, but dependent on your loan agreement. The £1200 that you wrote previously that you credited to them, may not have have used to off set against the balance outstanding but placed on a suspense account to be drawn down by the loan company, to credit against weekly payments?

 

It all depends on the arrangement that is detailed in the loan agreement of what is and is not available under the arrangement that you entered in to with this Log Book Loan Company.

 

On a separate point, did your CCA not also provide you with illustrations of early settlement too?

 

I repeat. Please post your agreement on here. So that others can peruse and advise accordingly. I presume that there is no Bill of Sale as it is not valid in Scotland?

 

As always, just giving my personal opine with the usual caveats. I hope it is of help.

 

Hip_Hop

Edited February 4, 2011 by Hip_Hop
clarity

[lukeyboy1]

Hi.

 

 

 

As can be seen their figures are fairly wildly off what has been illustrated. Dodgy as anything, I reckon...

 

Any help / advice would be much appreciated at this stage.

 

Thanks!

[Hip_Hop]

Have pasted url's for convenience.

 

Others with direct knowledge of Hire Purchase Agreements through Log Book Loans in Scotland will no doubt be along shortly to offer advice and assistance.

 

http://www.4freeimagehost.com/show.php?i=9aa0794880c4.jpg

http://www.4freeimagehost.com/show.php?i=073cb2eaf81e.jpg

http://www.4freeimagehost.com/show.php?i=01f5f4749203.jpg