logbook money loan debt query

[Burnsey85]

Hi apologies if this is in the wrong section. 

 

My ex partner took out a logbook loan on her car with logbook money,

 

at the time she was only receiving child benefit & child tax credit,

we explained that we would pay the loan with my wages (I work full time)

they told us they couldn't do a joint claim as the car was in her name but they could take my wages into account,

 

when the gentleman came to copy bank statements and proof of address from her I asked if they wanted wageslips/bank statements from myself and was told it was needed as I wasn't taking the loan out in my name they then loaned her the money.

 

Fast forward a couple of months and we are not together,

she is now on universal credit and said she would pay £100 per month which she couldn't really afford but they wouldn't accept anything less,

she has now not been able to keep up with payments for this

 

They are now saying they will take the car (everyday goes by they are adding interest)

unfortunately I am not in a position to help her due to financial difficulties myself.

 

Because they only have proof of her income at the time (which = £400pm) the repayments were £220pm,

as I have said they never asked for proof of my income apart from me telling them a figure on the phone,

 

is there anyway around either voiding the loan or at least reducing the money and a better repayment instead of something which is out of her budget,

 

to me this loan would be classed as irresponsible lending because they didn't do any checks on me but wanted to see what others say in the way of if she will be wasting her time trying to keep it on this premise or if she has a case to fight

[dx100uk]

regardless to the ins and outs

if they didn't do any affordability checks nor properly

then an IRL claim may well be fruitful.

 

 

[Burnsey85]

How would she go through the IRL claim would it be to speak to them directly or go to financial ombudsman?

If successful in the claim does it void the loan altogether or just rectifies the issue with a look at it and repayments affordable?

 

The other thing is they didn't even want me to sign anything to agree to paying it,

I know that the loan was taken out in her name but in my eyes if it was a joint claim (which they said they couldn't do)

or I was used as a sort of guarantor (going by a verbal agreement that it was me that was paying the loan)

surely I would, have had to prove something and sign something myself. 

 

Although we aren't together anymore she needs the car for getting the children to school etc...

 

I don't want to see her lose her car but since moving out my financial situation has changed drastically

[dx100uk]

Simply forget you had anything to do with the application

Is a bill of sale involved here?

[Burnsey85]

Yes it's a bill of sale I presume as they took the v5 on completion of paperwork

[dx100uk]

then you need to play this carefully

get the car off of the public road pref behind gates, even better locked in a garage

do not leave it on a public highway.

 

when was the loan taken out

for how long

and has she paid over 1/3rd

and was there a consumer credit agreement signed too?

 

from my general notes:

 

http://www.consumeractiongroup.co.uk/forum/showthread.php?452164-Log-Book-Loan-Guidance&p=4791345#post4791345

from my notes. [prob same as above!
>>>>>>>>>>>>>>>>>>

logbook loan repossessions are not always legal, 
.
if linked to a CCA agreement or if the BOS has not been registered with the high court.
.
If BOS registered then yes they can reposses, 
but have to show registration and debt details.*
.
Registration
.
A bill of sale can only be enforced if it was properly registered.
Since this is an expensive and difficult process, 
it is rare that this actually happens. 
.
Before your lender can end the agreement and take your goods, they must send you an arrears notice and a default notice under the Consumer Credit Act 1974. 
.
The default notice gives you 14 days to make up any missing payments. 
.
If the lender is a member of the CCTA, they must follow two rules from their code of practice before taking the goods back.
.
They must try to reach a realistic repayment agreement with you. 
.
You must also have missed paying an amount equal to the last two monthly payments (or the last four weekly payments if you pay weekly).
.
Failure to register the bill of sale renders it void and so renders any security on goods void.
.
 Consequently, before allowing any creditor to gain possession of your goods, 
ask to see a registered copy of the bill showing the supreme courts seal.
.
 You can also call the national debt line, and ask them how to search the registry yourself.
.
 Also a valid DN must be issued.

.
If linked to a CCA then can not reposses if on private property without a court order 
( but can if on public road and under a third has only been paid ).
.
Over a third, they need a court order wherever it is.
.
check for...[BOS]
.
Not Registered With The High Court In 7 Days
not registered AT ALL!
 .
*Credit Agreement Details Not On The Bill Of Sale

You should also check that the name on the registration documents 
matches the name of the person who signed the BOS

On occasions these cars get sold on several times

.
how to check:
.
email:[email protected] ov.uk.[no spaces]
.
ring:020 7947 7772 
.
write:
QB Enforcement Section, 
Room E15-E17, 
Royal Courts of Justice, 
Strand, London, WC2A

...
.
ideally you need the BOS number
.
however
they can search by the Reg Number
.
............... 

also see:
http://www.fca.org.uk/firms/firm-types/consumer-credit/consumer-credit-research/logbook-loans

.....

Do you have a problem with a Logbook Loan?
 With Citizens advice estimating that over 60,000 of these loans were taken out in 2014 alone
 an increasing number a causing severe difficulty and distress for borrowers.
.
 In this guide we explain what a logbook loan is, and how they work. 
 What you can do if you have a repayment problem,
 and what you can do if you have unknowingly bought a car with a logbook loan attached.
.
 Three golden rules for Logbbok Loans
.
 1)No matter how desperate you are to purchase a car, or raise cash, 
NEVER consider this type of Finance
 These loans are designed purely for the benefit of the lenders. 
With APRs of 400+%, little consumer protection, and aggressive debt collectionicon practices
 they should be avoided at all costs.
.
 2)When purchasing a used car from whatever source,private or trade, 
ALWAYS do a FULL GENUINE HPI CHECK costing around £20, 
these come with a guarantee against any form of existing finance, including lbl's
.
 3)If you have any problem with a Logbook Loan, 
your first step is ALWAYS to check that the Bill Of Sale has been registered
 with the High Court. You can do this here-
.
 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] ov.uk
.
 You may read on the internet that your BOSicon will be void if witnessed by your lbl lender
.
 Since the OFT( as was) lost the attestation case on appeal by 2 to1 this is NOT the case
.
 full details here http://www.bailii.org/cgi-bin/markup...method=boolean
.
 Logbook loans are a form of credit dating back to the Victorian era, 
derived from the 1878/1882 Bills Of Sale Acts, with terms and conditions to match in many cases.
.
 Problems are many fold from extortionate charges by lenders for calling a customer, 
to repossessions where owners have been left at the side of a busy road,
 unable to get to work, and even sexual harassment via debt collection.
.
 Poor practices abound, unsurprising when there is no incentive for lenders 
to ensure their customers understand the terms or can afford the repayments.
 In fact the very nature of this form of finance could be seen to encourage bad behaviour
 – why carry out affordability checks if a single missed payments means you get to keep 
 the money and takeaway the car?
.
.
 How does it work?
.
 When you take out a logbook loan you will be asked to hand over your vehicle’s logbook 
or vehicle registration document, which proves you are the registered keeper of the vehicle.
.
 You’ll also have to sign a credit agreement and a form called a ‘bill of sale’. 
This means the lender now owns your vehicle on a temporary basis 
but you are still able to use it so long as you meet all loan repayments. 
.
These documents are recognised by law in England, Wales and Northern Ireland 
but are not used in Scotland.
.
 The law only recognises a bill of sale if the lender registers it with the High Court. 
If it’s not registered, the lender must get a court’s approval to repossess your vehicle. 
.
You should check if the bill of sale is registered.
.

 What you should do if you have a repayment problem
.
 1) check your Bill Of Sale is registered as above
.
 2) the lender must send you a default notice which complies with the requirements of s87(1)cca1974
.
 allowing you fourteen clear days to remedy any default (which can be after one missed payment)
.
 You should , if your lender will not negotiate a reduced payment, straight away on receipt of the dn
.
 look to take out a time order. This gains you the protection of the court, which can look into the overall loan--

https://www.nationaldebtline.org/EW/...t/Default.aspx

.
 What you can do if you have purchased a car with an existing logbook loan
.
 If you receive a letter threatening to repossess the car or an enforcement officer 
turns up at your home to take it, you may not be able to stop them. 
.
•ask to see proof of their identity and their authorisation to take the car
•ask to see the bill of sale document – they have to show you this if you ask for it
•if you feel threatened by how an enforcement officer is behaving, call the polic
•ask for written confirmation of what has been taken
•get the contact details for the logbook loan company.
.
If the lender has taken your car, you can try to get it back 
and reclaim your money from the seller. 
However, this can be a costly and time-consuming process and is not guaranteed to succeed.
.
 If you want to get the car back, you could pay off the outstanding loan 
and then take the person who sold you the car to court, to try to get your money back.
 .
 If you just want to get your money back, you can take the person who sold you the car to court. 
 Always get independent advice before you decide to take someone to court.
.
 Some lenders are members of the consumer credit Trade Association (CCTA), 
which has a code of practice covering logbook loans. 
The code of practice says the lender must register the logbook loan on a register, 
so it will show up when you carry out a history check on the car. 
It also says they must obey certain rules when they repossess a car.
.
 If you are unhappy with the way a logbook loan lender or its enforcement officers have behaved, 
find out whether they are a member. If so, you can complain directly to the CCTA.
However this code is regularly ignored
.
http://www.ccta.co.uk/content/our-code.aspx
.
 Finally both the Financial Conduct Authority and the Law Commission are investigating 
Logbook Lending  and the associated legislation, 

full details here--
.
http://www.fca.org.uk/firms/firm-typ.../logbook-loans
.
http://lawcommission.justice.gov.uk/...ls-of-sale.htm
.
for anyones info, you must act immediately on receipt of a default notice
.
What you should do if you have a repayment problem
.
 1) check your Bill Of Sale is registered as above
.
 2) the lender must send you a default notice which complies with the requirements of s87(1)cca1974
 allowing you fourteen clear days to remedy any default (which can be after one missed payment)
.
 You should , if your lender will not negotiate a reduced payment, straight away on receipt of the default notice look to take out a time order. This gains you the protection of the court, which can look into the overall loan--
.
https://www.nationaldebtline.org/EW/...t/Default.aspx

Bills of Sale Act does not apply in Scotland,
just to reassure you from the Money Advice Service *Taking out a logbook loan in Scotland*

  In Scotland, ‘bills of sale’ cannot be used as security and are not legally binding.
  Lenders in Scotland are therefore likely to be operating under different credit arrangements.
  If the logbook loan is a ‘hire-purchase agreement’ or a ‘conditional  sale’, your consumer rights and protection under the Consumer Credit Act  1974 will apply.
.
worth a read
http://www.consumeractiongroup.co.uk/forum/showthread.php?472038-ACF-THe-funding-Corp-illegal-repo-now-DCA-Chasing-loan&p=4972172#post4972172

.

dx