Log Book Loans Horror Stories

MrsTinks

Maybe if these companies were strictly controlled/banned it would force a lot of people to address their debts a lot earlier on... yes that might mean a DMP or even going BR... But is it better to deal with it when the borrower has say £4k of debt or when they have £14k and have lost their car to boot?
I don't have anything against log book loans per se - I DO have something against the way they are managed and that companies take advantage of the customers/borrowers. I think if they were more transparent, never lent more than the value of the vehicle, had a fairer APR and so forth then they would be a good idea - infact as they have security they should provide an affordable method of lending instead of a disgustingly inflated rate of APR...

dougyd

Apples2 wrote: »

Agreed, but I expect the typical reason is to keep up with the Jones' but I didn't want to use that as it adds weight to the "close them all down" pov.

My point was that there ARE genuine reasons out there.

As you say, there are genuine reasons out there for people to still go to this type of company, however a lot of people don't know about Credit Unions or some of the grants/emergency loans governement can offer to help people in genuine need which should be used instead of ultra high interest loans.

The other type of people as you have identified are the people either living beyond their means or people who are trying to get out of debt by getting further in to it.

By closing down lending of this type people will be forced to deal with their debts.

woody01

campez wrote: »

logbook loans should be reported in the pappers aswell as the shops that advertise them i told them when i took out my loan that i could not provide payslips or any proof of employment do they need these to give me aloan as it didnt seem to bother the agent he didnt even tell me the amount i would be paying back on 1000 i have to paye back 2995 now they are adding more for missed payments .i have just started a new job if i loose my car i loose my job and then my house.they just tell me i have to paye 1000 with in three days or they take my car they are going to ruin my life and my childrens.hope they are proud rip off b

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ds

SOrry...but how is this Log Book Loans fault?

YOU signed on the dotted line and AGREED to pay this amount of money. If you didn't read it, or didn't know the amount, that is again YOUR fault.

I just cannot understand, when people use schemes like this, or PayDay loans type agreements, they get all shirty with the company when they have done it to themselves.

RobertoMoir wrote: »

Well this comes back to what I've said all along - I know it would be difficult to implement but I strongly believe that if someone is unable to understand the terms and consequences of the bit of paper they are signing they shouldn't be allowed to sign it.

Absolutely 100%

RobertoMoir

MrsTine wrote: »

Maybe if these companies were strictly controlled/banned it would force a lot of people to address their debts a lot earlier on... yes that might mean a DMP or even going BR... But is it better to deal with it when the borrower has say £4k of debt or when they have £14k and have lost their car to boot?
I don't have anything against log book loans per se - I DO have something against the way they are managed and that companies take advantage of the customers/borrowers. I think if they were more transparent, never lent more than the value of the vehicle, had a fairer APR and so forth then they would be a good idea - infact as they have security they should provide an affordable method of lending instead of a disgustingly inflated rate of APR...

That's a problem with lenders of last resort. Their risk is higher hence there is some justification in a higher APR (note I'm talking about "lenders of last resort" in general, not just log book loans) but of course some companies milk the fact that people have few other choices besides them.

In a lot of ways in our society it costs you more money to be poor than it does to be rich.

Luc1

Tirian wrote: »

Well, well ... would you look at that:

Dickensian ‘logbook loans’ to be banned

Got to say this is Great news - Im taking the scumbags to court this March! I havent even got a loan with them..... LBL are criminals!!!

Also Tirian, completly agree with what you on here!
Also, there is only one wuckfit on here.....

campez

:rotfl::rotfl::rotfl::rotfl:bye bye logbook loans .i am so glad you are gone u bastar _s