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Hi everyone,

 

A friend of mine is looking to get a log book loan, as he needs some urgent cash - he had problems similar to my own in the past with payday lenders and made settlements to all, which of course leaves him unable to get credit with them or any of the normal channels.

 

He is now in good shape financially (other than having no credit score) and able to repay the loan over probably 3- 6 months without any problem.

 

His big worry is whether the companies that offer these loans can be trusted - having dealt with all the lies and tricks of the paydayloan industry in the past, he doesn't want to get involved with anything dodgy, or worse still risk losing his car due to their dishonesty.

 

Are there companies out there that do logbook loans that are safe/reputable?

 

So far he has looked at (Company name removed- SS ) which seem reasonable in terms of interest compared to the others, but I see stories of them taking cars back without cause? Haven't ever seen a story of this happening when payments were kept up and on time, so can they be trusted? Is there another option that would be better/safer?

 

Any help much appreciated....

Edited by SabreSheep
Company name removed - We cannot allow marketing direct or otherwise :)

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Stay well away from Logbook lenders. There are even less rules about this from the FCA then there are now about ~PDL.

There are other ways, how much does he need?


 

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CAG rules forbid advertising or recommending companies or services.

 

Best avoid


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The SabreSheep, All information is offered on good faith and based on mine and others experiences. I am not a qualified legal professional and you should always seek legal advice if you are unsure of your position.

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Yes I can only echo what has already been said, log book loans are covered by ancient legislation 1888 and have none of the protection associated with hire purchase or regulated agreements.

 

'If your friend has now reached a place where he is financially viable he would be foolish to risk going down this road IMO.

 

You didnt say what he needs the money for, but I would examine all other options before taking one of these, and if it was to repay another creditor i would never consider it as a viable option.


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Think of those problems in the past best leave them in the past and not go down that road again

Log book loan will only be asking for a repeat of before

 

There are other ways to borrow but what ever it is for I am sure they can wait


If i have helped in any way hit my star.

any advice given is based on experience and learnt from this site :-)

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Logbook loans should be avoided at all costs

 

Interest rates of 400pc plus,little or no consumer protection, and aggressive debt collection practices

 

When you sign the bos you are effectively transferring ownership of the vehicle until fully repaid

 

These companies are under severe scrutiny by the FCA, the associated laws are under review by the law commission

 

AVOID


PLEASE HELP US TO KEEP THIS SITE RUNNING

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Any help I am able to give is from my own experience only. Should you have any doubt you should contact a qualified professional.

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Okay thanks for the advice - its to take his family overseas for another family member getting married in the USA - needs about £4k but its come up at short notice and obviously is under pressure to be there - can easily repay over a few months but just bought a new car (worth about £10k and only real asset) so has nothing saved whatsoever.

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Then ask the family to loan the money. He'll end up in a world of trouble with a log book loan


Any advice i give is my own and is based solely on personal experience. If in any doubt about a situation , please contact a certified legal representative or debt counsellor..

 

 

If my advice helps you, click the star icon at the bottom of my post and feel free to say thanks

:D

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4000 for 6 months at 400 pc =approx 5700 in interest

 

Total repayable £9700

 

Rather them than me


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Any help I am able to give is from my own experience only. Should you have any doubt you should contact a qualified professional.

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I know this is going to sound like "old man advice", but I have been there, it is only my opinion and feel free to ignore.

 

Sometimes you just have to say, sorry cant do it I cannot afford it. i know it is hard and the current generation seem to have lost the use of the phrase, but if people would just start to use it , it would save a lot of problems.


DO NOT PAY UPFRONT FEES TO COLD CALLERS PROMISING TO WRITE OFF YOUR DEBTS

DO NOT PAY UPFRONT FEES FOR COSTLY TELEPHONE CONSULTATIONS WITH SO CALLED "EXPERTS" THEY INVARIABLY ARE NOTHING OF THE SORT

BEWARE OF QUICK FIX DEBT SOLUTIONS, IF IT LOOKS LIKE IT IS TO GOOD TO BE TRUE IT INVARIABLY IS

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As one old man to another I completely agree DB


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Any help I am able to give is from my own experience only. Should you have any doubt you should contact a qualified professional.

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I understand, but if he is able to pay back within a few months without any problems many would say he can afford it - its just circumstances from the past that prevent him from doing what most others would do - put it on a credit card or overdraft - feel for his situation...

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PLEASE HELP US TO KEEP THIS SITE RUNNING

EVERY POUND DONATED WILL HELP US TO KEEP HELPING OTHERS

 

 

 

 

Any help I am able to give is from my own experience only. Should you have any doubt you should contact a qualified professional.

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It has no bearing on if you can pay it back. You are borrowing 4k and paying back almost 10k. With no protection within the law.


Any advice i give is my own and is based solely on personal experience. If in any doubt about a situation , please contact a certified legal representative or debt counsellor..

 

 

If my advice helps you, click the star icon at the bottom of my post and feel free to say thanks

:D

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It seems to me that he must have known about this over six months ago, i know weddings take an eternity to organise. So the question is, if he can afford to repay the 4k and the interest (probably another 4 or 5 k at least) in three to six months, he should have been able to save the 4k in 4 or less.

If he couldn't do that he is unlikely to meet the repayments on his return.

 

Like I say just my opinion.


DO NOT PAY UPFRONT FEES TO COLD CALLERS PROMISING TO WRITE OFF YOUR DEBTS

DO NOT PAY UPFRONT FEES FOR COSTLY TELEPHONE CONSULTATIONS WITH SO CALLED "EXPERTS" THEY INVARIABLY ARE NOTHING OF THE SORT

BEWARE OF QUICK FIX DEBT SOLUTIONS, IF IT LOOKS LIKE IT IS TO GOOD TO BE TRUE IT INVARIABLY IS

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Agree with dodgeball and oldrouge.

 

 

I suspect it will also further damage his credit rating so it'll take even longer to get mainstream credit in the future.

 

 

Consider what might happen if he is made redundant or can't work for some reason.


 

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:p

 

Advice & opinions given by Caro are personal, are not endorsed by Consumer Action Group or Bank Action Group, and are offered informally, without prejudice & without liability. Your decisions and actions are your own, and should you be in any doubt, you are advised to seek the opinion of a qualified professional.

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It may be a better idea, if the car is not essential to work. to sell it and use the money for the trip. He wont be using whilst he is away, and he can save the balance and save the proposed repayments to buy a new car in 4 months on his return.


DO NOT PAY UPFRONT FEES TO COLD CALLERS PROMISING TO WRITE OFF YOUR DEBTS

DO NOT PAY UPFRONT FEES FOR COSTLY TELEPHONE CONSULTATIONS WITH SO CALLED "EXPERTS" THEY INVARIABLY ARE NOTHING OF THE SORT

BEWARE OF QUICK FIX DEBT SOLUTIONS, IF IT LOOKS LIKE IT IS TO GOOD TO BE TRUE IT INVARIABLY IS

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I'm sure that a £6,000 car would do as well as a £10,000 car.


 

What's Best for You?

 

 

The Consumer Action Group is a free help site.

Should you be offered help that requires payment please report it to site team.

 

Alliance & Leicester Moneyclaim issued 20/1/07 £225.50 full settlement received 29 January 2007

Smile £1,075.50 + interest Email request for payment 24/5/06 received £1,000.50 14/7/06 + £20 30/7/06

Yorkshire Bank Moneyclaim issued 21/6/06 £4,489.39 full settlement received 26 January 2007

:p

 

Advice & opinions given by Caro are personal, are not endorsed by Consumer Action Group or Bank Action Group, and are offered informally, without prejudice & without liability. Your decisions and actions are your own, and should you be in any doubt, you are advised to seek the opinion of a qualified professional.

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