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Car written off - Logbook loan.. Who will receive payout?


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Come across thismforum googling my dilemma, very helpful so far!

 

I have got a logbook loan on my car, and I have crashed it and I think it's going to be written off

 

This has given me 2 problems:

 

1) is my insurance still valid? (I haven't told them I have a lbl and don't intend to)

2) if it is and they payout, who will get th money?

 

Many thanks in advance for any help I'm at my wits end :'(

 

Dave

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I would imagine any settlement would be paid to you being the registered keeper, however i stand to be corrected. Welcome BTW :)

 

I hope that's the case, as I can buycanother car with the payout then just carry on with the loan, has anyone had any experiences in this situation?

 

Thanks

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I had a Logbook Loan the beginning of 2010 and I did the same - crashed my car (not my fault) and the car was subsequently written off.

Logbook Loans had obviously registered their interest in the car as the balance of the outstanding loan was paid directly to them from my insurance payout with the remainding balance being credited to me. I received a letter from Logbook Loans a few days later stating receipt of the payment from the insurance company and that the loan was cleared and settled.

I never informed my insurance company that I had taken a loan out with Logbook and to be honest at the time wasn't aware that maybe I had to - I didn't have any problems with insurance payout but I don't know if this will differ between insurance companies.

Hope this helps.

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No the insurance will be paid to the lender as it is their car and if there is a short fall you will be liable for that.

Did you take out gap insurance?

 

I have done a HPI check and logbook loans does come up, so I'm not sure where this leaves me as far as being covered as well as who will get any insurance payout? I thought with HPI it goes to the lender as u say, not sure if it same for lbl?

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I had a Logbook Loan the beginning of 2010 and I did the same - crashed my car (not my fault) and the car was subsequently written off.

Logbook Loans had obviously registered their interest in the car as the balance of the outstanding loan was paid directly to them from my insurance payout with the remainding balance being credited to me. I received a letter from Logbook Loans a few days later stating receipt of the payment from the insurance company and that the loan was cleared and settled.

I never informed my insurance company that I had taken a loan out with Logbook and to be honest at the time wasn't aware that maybe I had to - I didn't have any problems with insurance payout but I don't know if this will differ between insurance companies.

Hope this helps.

 

I didn't seen this reply m8 thank u, this is what I was worried about as the settlement figure if I paid it back now (6 months in) is still almost twice what I borrowed, meaning almost all will go to lbl

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yes i was exactly the same - I was only about 4 months into my 1 year loan with them and the amount I have deducted from my insurance settlement ate up most of it. Probably not what you want to hear. On the upside it gets Logbook Loans out of the way clearing the debt with them and you are no longer tied to this bunch of (in my opinion) thieves. They are a bunch of predators relying on people who through unfortunate circumstances have very few other options but to turn to them.

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The lender, LBL will get the payout because it is their car, you dont own it until debt paid off; thats where gap insurance is useful.

 

Hi Ray

 

Isn't GAP insurance used to pay the shortfall between the insurance payout and the outstanding balance of finance ? With that difference being the GAP so to speak ? This is after all, a LBL to raise funds and not a HP agreement to buy a vehicle.

 

Doesn't seem to apply here as the finance would appear to be less than the value of the car.

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