I am a freelance television journalist looking to get in touch with people who have been affected by logbook loans. Have you taken out a logbook loan and felt misled by the company? Did you buy a car without realizing there was loan secured against it? Have you had your car seized as a result of a logbook loab? Are you a current or ex-employee of a logbook loan firm who feels the company acts unfairly? I am gathering background information for a film; any information provided will be kept in the strictest confidence. For more information, please contact Alex on 07716450385 or alextvcasting@gmail.com Thanks!
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Presumably anyone affected by a 'logbook loan' will - unlike me - know what this term means. I'm guessing from your third line that it means a loan secured against a car or cars (perhaps as part of a group of assets) - but wouldn't there be a clause in the loan agreement that prevented the borrower from disposing of the car unless and until the loan was paid off?
May be a little more explanation would help.
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but wouldn't there be a clause in the loan agreement that prevented the borrower from disposing of the car unless and until the loan was paid off?
Probably, but some people desperate enough for cash to take out a logbook loan might be tempted to ignore such a clause when funds ran low again? Or am I being cynical?
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(Did you buy a car without realizing there was loan secured against it? Have you had your car seized as a result of a logbook loab? )
Hi ,as a car dealer I've bought several cars from log book loan companies who have seized them after a borrower has defaulted on a loan .
From my experience I'm sure that LBLC now always register their interest on HPI when they secure a loan .It wouldn't be to their benefit not to .
Although all finance companies are not legally obliged to register their advance against a car .Their are major benefits for them when they do .
If a dealer buys a car without checking HPI first he deserves to lose the car ,it's a foolish thing to do ,especially when an HPI check is just £5 to the dealer .
A private buyer is less culpable ,but you would have to say when you search autotrader and e bay for a car they both extensively explain what HPI is and why you should use it .
In short HPI checks should prevent fraud by the person who took out the loan and who owns the car
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An aquaintance is a manager at a LBLC in TonyG home town according to him they do not register their claim with HPI that is not not how the debt works apparantly.Cars will be continued to be sold with debts and ownership problems until another system is found ,HPI is only any good if the debt has been registered if it has not they are as much good as a chocolate firegaurd.
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It certainly used to be the case that LBLC didn't register their interest with HPI ,that's not the case today .
I've bought cars from them where they cleared their interest on HPI as I bought the car ,and provided a clear HPI report .
If you paste the item number below into an e bay search ,it's clear from the description that they do register an interest .
The LBLC avoid problems by registering their interest .
On a slightly different point ,their are still potential title problems when buying a used car ,even after HPI checking .it clearly states on the v5 that the registered keeper is not necessarily the owner .Ive had that problem once and that can be a nightmare .
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I am in the UK for a few days and have checked this out depentant on what type of loan and for how long they may not register the car with HPI, so to say thet every vehicle that they give a loan for is registered with HPI is not stricyly true it becomes complete minefield and as Tony states the added problem that the registered keeper is not forced to be the owner .
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surely most people who need loans dont own the car outright so loans cant be taken against their cars??????
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Thats the whole point If you have the log book then loans have been given,
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(surely most people who need loans dont own the car outright so loans cant be taken )
Loan companies will only lend against a car that has clear title ,ie no other finance company has registered an interest against it .
The register is the HPI register ,all loan companies will only provide a loan when the register is clear .
I would think think that car owners would only use LBLC if their circumstances had changed ,ie loss of job ,sudden large bill etc .
The cost of LBL are similar to pay day loans ,very expensive , in addition the ones I've looked at charged an initial setting up fee ,typically £150 .plus a release fee at the end of the agreement .
It's a loan type that's best avoided if you can access conventional finance .
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