Log Book Loans? (merged)

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trini_honey
trini_honey Posts: 96 Forumite
edited 20 January 2014 at 5:20PM in Loans
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Back to the original post...

My partner brought home a leaflet, given to him by a mate, for a company offering "log book loan", this is a selection i've taken from their website. you can do a google to come up the site i'm refering to, but don't want to post it. It's aimed at people with ccj's poor credit rating etc. But my bother with this is it seems fishy. I have a feeling that this is not legit. There has to be a catch.

Well my reason for posting this, is for others who have heard about this, can verify it's authencity, or not, as i suspect, so I can show to my OH.
HOW DOES A LOG BOOK LOAN WORK?
We keep your log book (V5), you keep your car and keep driving
Loans available from £500 - £50,000
No credit checks, CCJ's no problem
All enquiries treated in strict confidence
Same day service: Money the same day
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Comments

  • carl310166
    carl310166 Posts: 747 Forumite
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    How would you tax your vehicle without the V5 i wonder?
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  • Fatboy_NSS
    Fatboy_NSS Posts: 546 Forumite
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    How can this be googled without the name of the lender? Doesn't sound particularly fishy to me, just that the loan would be secured against the vehicle.
  • ChrisB_4
    ChrisB_4 Posts: 30 Forumite
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    carl - you don't need your logbook if you use the form that the authorithies send directly to your address (not the form in the post office).
  • Ember999
    Ember999 Posts: 1,022 Forumite
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    Fatboy_NSS wrote:
    How can this be googled without the name of the lender? Doesn't sound particularly fishy to me, just that the loan would be secured against the vehicle.


    This is the website honey, just click on this link if you want to see what it is all about Log Book Loans though why anyone would be desperate enough to loan money from such a company is beyond me! I had a look at this site a few weeks ago when another member of MSE asked me about this company and I told him 'DO NOT DO IT' etc. If you have to use a company like this, you cannot afford a loan, so you will lose your car! I wouldn't have anybody have my log book and neither should you. Take my advice, everybody, keep away from companies like this. They prey on the poor and the needy and rip them off.
    ~What you send out comes back to thee thricefold!~
    ~
  • carl310166
    carl310166 Posts: 747 Forumite
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    ChrisB wrote:
    carl - you don't need your logbook if you use the form that the authorithies send directly to your address (not the form in the post office).


    I was under the impression that you will need to produce the V5,M.o.T and Insurance certificate when taxing your car.

    Also,what is to stop you just applying for a duplicate V5,having one doesn't mean you are the owner.

    I am willing to be corrected though.
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  • Bossyboots
    Bossyboots Posts: 6,746 Forumite
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    carl310166 wrote:
    I was under the impression that you will need to produce the V5,M.o.T and Insurance certificate when taxing your car.

    Also,what is to stop you just applying for a duplicate V5,having one doesn't mean you are the owner.

    I am willing to be corrected though.


    No, you only need the form sent out by DVLA, MOT and insurance.

    If you don't have the form you need your registration document and a V10 (I think, I've got to do one later so will double check) together with insurance and MOT.
  • Miss_Cinnabon
    Miss_Cinnabon Posts: 19,481 Forumite
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    Has anyone heard of them as i got a leaflet from cash converters promoting them.

    They offer loans without credit checks but are secured on your car and they keep your log book.

    I am considering this but any info would be great.

    kyle
  • Robert_Sterling_3
    Robert_Sterling_3 Posts: 7,112 Forumite
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    I have heard of it.
    If they tell you the APR on the loan which I think they must do please let us know what the APR is.
    ...............................I have put my clock back....... Kcolc ym
  • grumbler
    grumbler Posts: 58,629 Forumite
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    Log Book Loans?, logbook loans - another 2 treads ...
  • inmypocketnottheirs
    inmypocketnottheirs Posts: 4,745 Forumite
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    How it works:

    They do a valuation based on the "Glass's Guide" value on the car you wish to secure a loan against. They take the very bottom trade value. Then, if you have any finance on the vehicle, they subtract the amount outstanding. If there is any equity left, they then lend you half this amount.

    They want to see the car and check that it is taxed. They keep the log book, and register thier loan with HPI. They want to see your valid MOT (if apllicable) and insurance. These are returned to you.

    The charge is 10% per month for the amount borrowed, plus a documentation fee of around £55.

    The loan is for 3 months, you can settle before, paying 10% per month on the capital outstanding. The way the loan is structured and the paperwork laid out, you are not encouraged to settle before the 3 months!! Strange that, eh :confused: ??!!!

    It is expensive and to be avoided, 'cos obviously if you default on your repayment you lose the car.

    I have done it in the past when have been desperate for short term cash, when I know I have had sizable amount in the pipeline coming to me. I am self employed and have had problems in the past credit wise, and I find it very difficult to get any mainstream lending. There are occasions when I can need a few hundred quid, when in a few weeks I am certain of collecting four or five thousand, so I have used log book loans only on this basis.

    Hope this helps. :beer:
    Don't lie, thieve, cheat or steal. The Government do not like the competition.
     The Lord Giveth and the Government Taketh Away.
     I'm sorry, I don't apologise. That's just the way I am. Homer (Simpson)
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