In the past a lot of logbook borrowers filed complaints against logbook lenders and some of these complaints degenerated into serious lawsuits. Some trials were favorable to logbook lenders and some to logbook borrowers. Often people complain about logbook lenders although they have signed the contract and agreed to the terms. Borrowers that are in dire need of money simply forget to analyze the conditions and costs of the loan and after that suffer from unbearable financial burden. However, in some cases logbook lenders also abuse the contract because the owners of these companies know that logbook loans are the last resort for some people. Usually people who take logbook loans have suffered serious misfortunes such as fire, death of the breadwinner or dismissal from work. Therefore, malicious logbook lenders can take unfair advantage of unenviable emotional and financial condition of the borrower. Disputes between the buyer and the seller are usually because of repayments, seizure of the vehicle without authorization, seizure of the wrong vehicle, inaccurate advertisements and biased advise for customers considering whether to take a logbook loan. In order to better understand why people complain it is useful to analyze individual complaints rather than talking about the quarrels between the lenders and the borrowers in general.
Robbie complains that he took a logbook loan worth £500 for a period of 1 year. He almost repaid his loan and only couple repayments are left. After the loan will be repaid fully Robbie will have paid £2000 for the logbook lender. However, lately he has found out that he owes £800 more. The reason behind this amount of money is that when Robbie was ill and was late to make two repayments for a couple of days the logbook lender had to contact him with letter and emails. Every call or email cost £12 and for every day when the payment is late interests are charged. £ 800 will have to be paid instantly after the last repayment is made. Robbie does not have this amount of money and as a result can loose his car.
Alicia is also complaining about a logbook loan company though she has never took out a logbook loan. A year ago she bought a used car through the dealership. After some time Alicia found a notice on her car window that she owes a substantial amount of money to a logbook company and that they will come to take this car in the morning. The dealer refused even to talk to Alicia about this incident and her lawyer was not able to solve this dispute. The problem is that the logbook lender had the bill of sales. It turned out that the previous owner was in huge debts for the logbook lender and sold the car to the dealer although it was against the law. Recently Alicia left her car in the backyard. Representatives from the logbook company came and tried to unlock the car with the spare key. They also showed the document signed by the High Court. In the end when police was called it turned out that the document was forged.
Jeremy got his logbook loan worth £2300 for 18 months. He had not job and no other income and desperately needed to repay his mortgage. He explained the situation to the representative of the logbook loan company and was told that there are no obstacles to take out a loan. The representative helped Jeremy to edit his bank statements in order to prove that he has some money and income and they also forged a certificate saying that Jeremy was self-employed. The representative also promised that Jeremy would only have to pay APR equal to 45%. Now this logbook lender is chasing Jeremy and demands to give the car.
All these situations are very different but all three persons suffered from logbook lenders. What is the right thing for each of them to do? Robbie will have to repay the money he owes because he violated the conditions of the contract. If the amount requested by the logbook lender is higher than what was formally agreed then Robbie could write a formal complaint or even try to suit the logbook company. The best thing for Alicia is to repay the outstanding debt for the car and then suit the dealer requesting to repay the money. Unfortunately Jeremy will have to give his car to the logbook lender since he has no job and no income. It is not advisable for him to suit the company since he participated in forging the documents.
There are a couple of things one should bear in mind before choosing a logbook lender. It is important to choose only those companies that are regulated by Financial Service Authority. Secondly, one should read carefully all the conditions of the contract. Lastly, those who are planning to buy a used car should always require a HPI check. A HPI check can identify if a vehicle has outstanding debt or is stolen.