Loan With Log Book Loans and they are charging me £16 per phone call!

liverpool1988

Basically i took out a loan on a car a while back with a company called Log Book Loans and as i have found it hard to keep my job in this recession as i am a tradesman by trade i havnt kept up the payments.

Now they are calling all the time and i will get a bill through the door everytime they call they are charging me £16 is this allowed?

Should i contact a debt management firm and consolidate all my debts?

any help would be great as i am really stressed about this!

gfplux

For additional advise and help why not look here http://www.cccs.co.uk/ and here www.nationaldebtline.co.uk/ They both offer help for FREE.
Also here www.payplan.com/index.php

Tixy

I would not advise consolidating your debts.

Instead I would recommend you write down a detailed income & expenditure account and financial statement. This is a good calculator to use as it makes sure you include everything
http://www.makesenseofcards.com/soacalc.html

Then once you have done that you can see how far off you are from being able to meet your monthly repayments. If you post the results on here (use format for MSE) then we will be able to advise on a course of action or possibly advise on ways you can make savings to free up more money.

It may be that a debt management plan would be a solution in which case make sure you use a reputable free organisation such as these - http://www.moneysavingexpert.com/loans/debt-help-plan#help.
Don't use any commercial debt management company that says it will consolidate your debts. In a proper DMP your debts are not consolidated, you pay a single payment but that is distributed to all your creditors.

liverpool1988

Thanks very much. Is this company allowed to charge me £16 each phone call though?

liverpool1988

Could i also come to a settlement fee aswell just to pay this off as i really hate dealing with this company anymore?

Tixy

With your log book loan did you sign over ownership of your car via a deed or agreement? If so then I think they are unlikely to accept a settlement of anything less than 100% of what they say you owe.

As I think the way they work is to take ownership of your car and then sell it on at auction. There are a few threads about them on the forum, it might be worth doing a search and reading them.

Here are a couple for you
http://forums.moneysavingexpert.com/showthread.html?p=25135459
http://forums.moneysavingexpert.com/showthread.html?p=22827697

liverpool1988

Thanks will read through now cheers.