Log book loan on my new car mobile money

[ACTABLECHIQUITA]

Hi I hope somebody can help me,

 

 

I recently purchased a used car

 

 

stupidly my partner said he had done hpi but hadnt.

 

 

Its an 04 car and

 

 

I recently got a letter not on a letter head or anything explaining that it has a bill of sale on it.

 

 

I rang to find out who the company was as it didnt give any clue on the letter.

 

 

Before I rang I looked into things and asked for them to send me the bill of sale,

they say they cant do this but gave me the registration date of 15/7/13 and the number to check myself.

 

 

I am assuming this will take time to give them more time to [problem] me.

 

 

I asked if a deal could be done as I had just mot'd the car and

they said they could there is £273 out standing

 

 

I offered half

they refused and said best they can do is 2 thirds.

 

 

I havent got this amount of money just to pull out and am annoyed that

I should have to pay somebody elses debt off to keep a car I have already paid for.

 

 

Please can anyone help

[scousepie]

If I recieved a letter without a letter head or I could't verify who they where I wouldn't be offering them money, you need to research these people ?.

 

See Link:

http://www.adviceguide.org.uk/scotland/consumer_s/consumer_cars_and_other_vehicles_e/consumer_problems_with_the_car_you_bought_e/consumer_the_vehicle_you_bought_doesnt_match_its_description_e/you_have_bought_a_car_that_has_a_logbook_loan.htm

[ACTABLECHIQUITA]

I rang them and told them that I wanted a copy of the letter on their letter head before anything was finalised,

 

 

they said it would be sent out but wasnt so

 

 

I rang again and was assured it would be sent out today,

 

 

bill of sale was for a log book loan taken out on my car in 2013.

 

 

Im in the uk.

[theoldrouge]

to check if registered

 

Contact Details

 

QB Enforcement Section

Room E15-17

Royal Courts of Justice

Strand

London

WC2A 2LL

DX 44450 Strand

 

Telephone: 020 7947 7772

Fax: 0870 324 0024

Email: [email protected].g ov.uk

[renegadeimp]

Stop ringing them. If there is no address or any other form of contact on the letter, keep it to one side and wait for something solid to come. You need to keep a clear paper trail.

[ACTABLECHIQUITA]

sorry Im petrified they gonna come for the car, I need it to travel to see my children. I'll wait andsee what happens if i get the letter headed letter

[ACTABLECHIQUITA]

to check if registered

 

Contact Details

 

QB Enforcement Section

Room E15-17

Royal Courts of Justice

Strand

London

WC2A 2LL

DX 44450 Strand

 

Telephone: 020 7947 7772

Fax: 0870 324 0024

 

 

will call them tomorrow ty

[renegadeimp]

You dont even know if its legit. If the BOS is legit, then you would have to negotiate a settlement fee ( as the other owner had zero right to sell it), or they will take it.

[theoldrouge]

If/when your letter arrives

 

 

If a car is subject to a logbook loan, the loan company is the legal owner of the car until the loan is paid off in full.

 

If you buy a car that has a logbook loan on it and the person you bought the car from stops paying the money back,

 

the finance company can repossess the car and keep it until the debt is paid in full.

 

This applies even if you bought the car in good faith and did not know it had a logbook loan. The loan company does not need a court order to repossess the car

 

if you want the car back

 

 

you can negotiate with the lbl co to settle the outstanding loan, and then claim against the vendor

 

if you just want your money back, your claim would be against the vendor

[ACTABLECHIQUITA]

it wasnt the person I bought the car off that took out the loan it was 3 owners ago so not much chance of getting my money back

[renegadeimp]

Thats why the car has been sold on again. Normal tactics. Once someone knows it has a Lbl on it, they dont go chasing the previous owner. They just sell up and wash their hands of it.

[ACTABLECHIQUITA]

NO concience at all the horrible person I couldn't possibly do that!

[renegadeimp]

Well. Looks like you're going to have to or you're going to have to find the money to pay it off. Now you know why a HPI check should always be done.

[ACTABLECHIQUITA]

TBH I would rather find the money than have somebody else tricked the way I have been. I wouldnt be able to sleep at night if I sold it on

[renegadeimp]

Then thats what youll have to do. The LbL company dont want to spend money trying to locate the original person who actually owes the debt. They know where the car is, so theyll just go after the current owner as the car still legally belongs to the lbl company.

[theoldrouge]

whatever you chose to do, send a full report on the matter to the FCA

 

all LBL cos are having to apply for full authorisation at the moment,

 

and need to appear whiter than white

 

the FCA wants to hear about all problems in this sphere

[ACTABLECHIQUITA]

Sorry to be thick what is the FCA? Also still no contact from the manager after I asked and no letter headed letter either. I have contacted the court for the checking of registraion of the bos sono further forward at the minute

[postmn]

financial conduct authority

[ACTABLECHIQUITA]

Thanks

financial conduct authority

[ACTABLECHIQUITA]

well the letter headed letter arrived today which makes the letter legit, im still awaiting the registry office to get back to me to let me know if bos is registered and legit. Looks like im gonna have to be looking for the funds to pay. Any advise on what to offer? they said the least they would take is 2/3?

 

thanks in advance

[theoldrouge]

Read this and use the information to make a very low offer

 

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Innovator businesses: Project Innovate

Logbook loans

Published: 05/06/2014

Find out about our research into the logbook loans market, some key findings and what we plan to do next.

A logbook loan is a loan secured on a vehicle where the consumer can continue using the vehicle, but ownership of the vehicle transfers to the lender.

 

A valid bill of sale, registered in accordance with the relevant legislation, operates to conditionally transfer the legal ownership of the vehicle to the lender as security for the debt . This does not apply to Scotland.

 

Bills of sale convey fewer consumer protections compared to those available for other forms of lending (e.g. lenders obtain strong rights of seizure).

 

Key findings

We found that consumers:

 

perceive benefits of logbook loans in being able to access large amounts of credit without credit checks, with repayments staggered over a long period

often have few alternative sources of large amounts of credit

tend to come across the product and the lender they choose at the same time, doing little or no shopping around

are often unclear about important loan aspects, e.g. the total cost of the loan, additional charges and the fact that ownership of the vehicle transfers to the lender

found communication by some lenders to be misleading and limited

say they are often subject to aggressive and threatening behaviour if they experience repayment difficulties

many experienced payment difficulties at some point, suggesting firms may not be carrying out adequate affordability checks.

Our research also shows that providers:

 

have high APRs, typically 400% or more, plus additional fees and charges

appear to rarely carry out affordibility checks

online lenders mainly consider the value of the car when granting a loan rather than the individual's ability to pay

in-branch lenders consider employment status as more important than the value of the car when granting a loan

report that they abide by the trade-body Consumer Credit Trade Association's (CCTA) code of practice, but noted there are numerous other lenders who do not

see repossession as a last resort

argue that low complaint levels, low repossession rates and high-levels of repeat custom are evidence of appropriate affordability assessments.

What we think

There is clear evidence of poor behaviour by firms in how they advertise to, sell to, communicate and deal with consumers.

Competition also appears weak, consumers do not understand the products well, shop around or switch. As a result, there is little competitive pressure on firms to offer good value logbook loans or to treat consumers fairly.

Lenders may be able to use the threat of vehicle repossession to pressure consumers to make high and for some, unaffordable loan repayments.

What we will do next

Given the evidence, this is a priority area to address.

 

As a small market with a few dominant players, we believe it is important that logbook lenders are quickly assessed, which is why we are requiring them to apply for full authorisation from 1 January 2015.

 

Logbook lenders that wish to continue providing logbook loans need to demonstrate how they meet our threshold conditions. These include conditions on suitability (including that a firm’s affairs are conducted in an appropriate manner regarding the interests of consumers) and on business models (including that the firm’s strategy for doing business is suitable for its regulated activities and that its business model is not exploitative of customers).

 

Firms that fail to meet our threshold conditions will be unable to satisfy the necessary authorisation standards and will not be allowed to continue trading in the market.

 

We will also respond to issues through our supervision and enforcement to ensure standards are maintained in the market.

 

We will take action where we find evidence of actual or potential consumer harm caused by firms not complying with legal requirements, our Principles for Businesses, or the conduct of business rules in our Consumer Credit sourcebook (CONC).

 

Further information

In this section see also:

 

Key features of the logbook loans market

Is the logbook loans market working for consumers?

You can see more detail in our full consumer research reports.

 

You can also see our final rules for consumer credit firms and a guide to being regulated by us.

 

Consumer credit research

 

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[ACTABLECHIQUITA]

I dont wish to appear rude, but I have no clue about all that above, I cant make head nor tail of it I am afraid. This is totally stressing me out trying to find out my best plan of action, I really cant afford to be shelling out lots of money but also cant afford to lose my car as I travel to see my children each week

[theoldrouge]

first check your bos is correctly registered

 

if it is, then negotiate hard

 

make a very low offer, and point out to them what you learn from here http://www.fca.org.uk/firms/firm-types/consumer-credit/consumer-credit-research/logbook-loans

[ACTABLECHIQUITA]

thanks i will have a good read of it and make some notes thanks for all ur help your a star x