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Log Book Loan
Does anyone know what the score is with these Log Book Loans, my friend recently took one out for �1500 and the interest makes it more than �2800 to pay back! He pays about �50 a week back, and missed a couple of weeks, they threatened to cancel the agreement and take away the car! He's signed a lot of papers, that seem to sign the car over to them if he defaults. They've kept the Log Book, but it is still registered in his name. I was wondering what would happen if he either, changed the log book into someone elses name by applying for a new one, and, or sold the car??? Would they have a leg to stand on?
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If you try and sell the car it will amount to fraud and the police will become involved, your friend will get a very bad credit rating and will never be able to buy anything on instalments again.
If the car is not worth �2800, then he should go to Citizens Advice or similar and get them to negotiate to take the car back, sounds like by the time he has paid the full amount and he has missed a payment I believe[ I know its not easy I have been there myself] the car will be well & truly passed its sell by date.
Next time shop around for a better deal, these people are crooks anyway charging so much interest.
If the car is not worth �2800, then he should go to Citizens Advice or similar and get them to negotiate to take the car back, sounds like by the time he has paid the full amount and he has missed a payment I believe[ I know its not easy I have been there myself] the car will be well & truly passed its sell by date.
Next time shop around for a better deal, these people are crooks anyway charging so much interest.
Ok, calling someone stupid is unhelpful, and does not answer the question.
Logbook Loans do secure the vehicle on the car. Them holding the logbook is purely a conceptual thing and does not in itself give them title to the car. This is done via a "bill of sale" which your friend will have signed along with the loan agreement. The car will be registered with HPI as Logbook Loans holding a financial interest in it and as such it is not lawful for your friend to sell the car to someone else as this will not cancel Logbook Loans interest in the vehicle.
The simple answer is similar to those already posted - your friend cannot sell the car, as technically, until the security is satisfied (the loan completed), it's not his to sell.
Logbook Loans do secure the vehicle on the car. Them holding the logbook is purely a conceptual thing and does not in itself give them title to the car. This is done via a "bill of sale" which your friend will have signed along with the loan agreement. The car will be registered with HPI as Logbook Loans holding a financial interest in it and as such it is not lawful for your friend to sell the car to someone else as this will not cancel Logbook Loans interest in the vehicle.
The simple answer is similar to those already posted - your friend cannot sell the car, as technically, until the security is satisfied (the loan completed), it's not his to sell.
My daughter has just had a car re-possessed because the previous owner still owed money to LOGBOOK LOANS. It appears that LOGBOOK LOANS held the original logbook and that the previous owner had obtained a relacement from the dvla so that he could sell the car on.
The heavies that reclaimed my daughters car also warned that an HPI check does not tell that money is still owed to LOGBOOK LOANS.
The heavies that reclaimed my daughters car also warned that an HPI check does not tell that money is still owed to LOGBOOK LOANS.
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