Log Book Loans Horror Stories

Apples2

campez wrote: »

they are thiefs simple they dont do things right

What aren't they doing right??

You applied for the loan, spent the money and have made every payment on time yes??

campez

ho apples do you work for them you will need to do better than that its not just me that has probs with them they are bieng reported to fsa more than any other log book company must be doing some thing wrong could be the 495% intrest they charge robbing b---ds

Tubbss

Hi,
can I have a loan secured on my car - (need cash now so I will sign 'owt and am too ignorant / stupid to read the agreement), then, in 6 months time when I have only paid one of the 6 payments that have been due can I complain that you are doing what you said you will do if I dont pay? Please can I get a quick reply cos its Christmas and I need the cash to buy my new born baby a X-box...

asandwhen

Campez - you signed for the loan at 495% so I think you are to blaim - You signed your car over to them and they are going to let you keep it aslong and you pay them what you agreed - You havent so they are going to keep the car - Big lesson learned by you me thinks.

Tirian

Wow, when did these boards suddenly get infested with such a flurry of smug gits? Hope you lot never have to get judged by the same yardstick by which you seem so keen to measure everyone else.

Logbook loans are basically a legal loophole based on obscure 19th Century legislation (Bills of sale), that enable them to get around a lot of the consumer protections that were (rightly) instituted on other forms of borrowing through the Consumer Credit Act 1974.

Bills of sale were, as you might imagine for a 19th Century law, never drafted with lending against motor vehicles in mind, and are not really suitable as a mechanism for delivering mass market consumer credit - and provide plenty of opportunities for exploitation by unscrupulous lenders, and practically no protection for borrowers.

Now, why don't all you super-self-righteous, more-creditworthy-than-thou stone throwers crawl back into whatever Dickens novel you crawled out of? Merry Christmas, one and all!

Apples2

Why take one out then??

The borrowers take them out because nobody else will lend them money.
The terms are clearly advertised.

The choice is that or a guarantor... and nobody in their right mind will act as guarantor for a high risk applicant.
All the lenders know the applicant is going to default, which is why they insist on security for their investment. What is wrong with that??

We need to see a more balanced argument for loans, instead of this tidal wave of people complaining of persecution when they fail to meet the terms they agreed to.

What is Tirian's alternative if these companies are closed down??

Bear in mind, people will still WANT/NEED money at short notice.

campez

no the terms on these loans are not clearly advertised .in my case agent was in a hurry no time to sit down and go through figures just told me the weekly payments give me aload ov forms back and a cheque for 1000 pounds and said if i wanted the money now i would have to cash the cheque with cashconvertors where he working from which i did they then charged me £40 this is not a profesional loan company .please anybody who reads this stay well away from logbook they are bullies and cowboy loan sharks they need closing down

Apples2

campez wrote: »

.in my case agent was in a hurry no time to sit down and go through figures just told me the weekly payments give me aload ov forms back and a cheque

I think this proves my point PRECISELY !!

People just WANT THE WONGA and will sign any old garbage to get their hands on the cash.

Tirian

Apples2 wrote: »

Why take one out then??

The borrowers take them out because nobody else will lend them money.
The terms are clearly advertised.

The choice is that or a guarantor... and nobody in their right mind will act as guarantor for a high risk applicant.
All the lenders know the applicant is going to default, which is why they insist on security for their investment. What is wrong with that??

We need to see a more balanced argument for loans, instead of this tidal wave of people complaining of persecution when they fail to meet the terms they agreed to.

What is Tirian's alternative if these companies are closed down??

Bear in mind, people will still WANT/NEED money at short notice.

You lot make me laugh. You can't have it both ways, actually - come storming in and tell everyone how stupid they are for borrowing money on these terms and then finding themselves in difficulty, and then all of a sudden if anyone mentions that the logbook loan co's can be exploitative, then magically you're all full of concern for where people are going to get loans from if the co's get shut down.

If you weren't actually so mindlessly brutish in your judgments on people you don't know, it would be hilarious. As it is though, it's just pitiful and sad

Anyway, since you ask - if people are unable to get a loan on unreasonable terms from, provided on a blatantly exploitative business model, then they may (a) look a bit further and find a loan on more reasonable terms elsewhere, or (b) not take a loan out at all, face their problems a little earlier, without some mercenary squeezing a few extra quid out of them on the way and using outdated, inappropriate legislation to get their hands on the only asset that person may have left.

Just a guess you understand, but perhaps a lot of people would actually be better off with either of those outcomes. But never you mind that, why don't you just have another bowlful of that smug-pudding that you love so much - because of course, it's inconceivable that anyone other than you can have thought logically about this - particularly if they've come to a different conclusion than you. :rolleyes:

Apples2

Tirian wrote: »

if people are unable to get a loan on unreasonable terms

then they may (a) look a bit further and find a loan on more reasonable terms elsewhere,

Where??
People don't use them as a first option, only when the lenders offering reasonable terms have refused (a fair assumption I feel).

Tirian wrote: »

or (b) not take a loan out at all,

Wouldn't that be great??

The general trend of advice is to do just that. Unfortunately people either will not listen, because they REALLY REALLY REALLY need the money straight away... or it's too late and they have already gone through with it.



People will ALWAYS want money at short notice. It strikes me as a fairly reasonable option to use your car as collateral.

Losing a Car is not the end of the World, you could lose your license for any number of reasons (driving endorsements, illness etc) and have to make do without a car.

Until people can learn to manage their finances, there is always going to be a demand for loans.
What other option, scrap lending altogether and save for everything???


Despite your assumption, I have made no comment at all about my personal financial position.



EDIT:

Go for it Tirian, give some advice to this poster (I'm sure I could find a million posts better suited).

http://forums.moneysavingexpert.com/showthread.html?t=2158311