LogBook Loans Rip Off!

louize_553

Hey,
My name is Louise, I am 21 years old... I thought id tell my story about log book loans.

I took out a loan with logbook last year 31st Aug 2008. Im a single parent and Unemployed and needed the cash asap.. to buy Insuarance fo my peug 206.
So a friend of mine (not any more) at the time told me about these loan ppl. I gave them a call and asked for a loan of 760.00 pounds.
A rep, came to my home address along with paper work i had to sign etc..

He took me to a local cash converters shop and gave me the cash.

I was so happy that my insurance was paid, and that i had money left over to spend.

He told me that i would have to pay back 29.80 a week starting from the week after i received the cash amount.

I signed papers and gave him my Logbook...

About 3 weeks later I missed a payment They sent me a letter regarding this and also a phone call the same day.. I did not know till 6 months later that they charge you 12.00pound per letter and per phone call...

I will be honest i did miss a few payments. But no one told me about the charges...

i am still paying off the loan today in 2009, its got that bad that its affecting my health in a very big way, Im loosing weight, hav to attend councelling, hair falling out, skin changes etc... all because of stress. I spoke to a lady at there office in putney, she was very rude and not professional at all. Yeah im only young and yeah i shouldnt of got the loan out but i did... and now no matter how much i pay off the loan, they find every excuse to send me a letter or give me a phone call... to add on top of my bill.

I took out 760.00 pounds, total payable was 1,600.00 ponuds. I have paid 1,700.00 pounds, and yet there still saying i owe them 1789.98 pounds!!

I have a 5 year old son, who can not live with me because i cant afford food, gas etc... So he has had to stay with my mum! I had a job, 3 month ago, which i very much enjoyed...
but got the sack because i had too much time off, because i had a misscarrage and my son turned ill with HSP.
So they sacked me, and once again im back on Benefits!
I dont get alot a week, and yet there still expecting me to pay 500 a week just to clear these arrears.

MY ADVICE IS DON'T GET A LOAN WITH THEM!

Enfieldian

:eek:

Thanks for that.

I guess you won't be using them again then?

McKneff

Its not just them, its all loan companies.
They dont need to tell you every little thing re the terms and conditions. You will have signed for the loan and also stated that you have read and understood these terms and conditions. So really it isnt their fault.
Unfortunately you have fallen into the trap of not reading them fully, they love customers like you.

iolanthe07

I will be honest i did miss a few payments.

Therein lies the source of your problems, but it is a bloody hard lesson to learn. There has been lots of very negative publicity about log book type loans here, and they really are to be avoided at all costs.

~Brock~

You may be interested to know that the OFT has issued Log Book Loans with a notice that they are minded to revoke their Consumer Credit Licence.

louize_553

Enfieldian wrote: »

:eek:

Thanks for that.

I guess you won't be using them again then?

No way! At the end of the day im only 21 years old, I was stupid and yes i have learned the very hard way...

I actually phoned them up and told them to get the car as i cannot be dealing with all this stress at the moment...

But they still havent came an got it, at the end of the day.. I have paid my loan al whats left to pay is fee's and charges etc...

It really does wind me up!

Thank you all for your comments x

cyril82

McKneff wrote: »

Its not just them, its all loan companies.
They dont need to tell you every little thing re the terms and conditions. You will have signed for the loan and also stated that you have read and understood these terms and conditions. So really it isnt their fault.
Unfortunately you have fallen into the trap of not reading them fully, they love customers like you.

I think you'll find that lenders are oblidged to make borrowers aware when charges are applied, which is why you will always get notification from your bank and other more responsible lenders.

To the OP, These people are scum bags i would try to keep paying but file a report with the OFT and the FSA complaining about the contract you have signed, in particular the 437.4% APR (taken from logbook loans website). And the amount that you appear to have been hit with in charges being more than the orgional total repayable under the term of the loan.

Start a dispute with the lender about the fact that you beleive that you have repayed the loan and and are not happy with the amount you have been charged in default charges and are considering filing a report with the OFT, you will probably find that they will offer you a significant discount on the charges.

nameless121

they should all be locked up.
legal loan sharks.
just been on there site

there loan example

Loan Amount £1,500
Weekly Repayment £53.60
Loan Term 78 weeks
APR 437.4%
Total Repayable £4,180.80

and thats if you keep up with all repayments

geoffky

louize_553
I will be honest i did miss a few payments. But no one told me about the charges...


here lies all your problems...what do you expect a loans company to do, ignore it....some personal responsibility would not go amiss when people slag these loan company's or banks ect

cyril82

geoffky wrote: »

louize_553
I will be honest i did miss a few payments. But no one told me about the charges...


here lies all your problems...what do you expect a loans company to do, ignore it....some personal responsibility would not go amiss when people slag these loan company's or banks ect

Are you for real pal? this company are scum, the O.F.T. are seriously considering revoking their consumer credit licence, they charge 437.4% APR and prey on those who are desperate.

Put it this way, if you borrowed £2,000 of your bank and missed a couple of payments and they wanted £2,500 in charges i doubt you would say, "hmm, that sounds fair, i must pay them immediately"

I agree people have to take responsibility for their own finances but companies like this one should be outlawed and people who see fit to defend them sanctioned under the mental health act....(just my opinion)

asandwhen

Dont understand why you needed to get a loan for the insurnace - most insurance companies will let you pay off insurance monthly and £700 will be alot less than £120 per month (£29 per week)