new car has outstanding finance.

Express_Courier

Hi all,

You know when you read a long thread and then 2 hours later you realize its from 2 years ago LOL.

Well as this one is quite current (Oct 09) i thought i'd log in to post some info that probably wont help you much but will help you to "know your enemy" !

Rather than replicate loads of info i'll post a link i found this afternoon for your information about these scumbags.

Im afraid its an 11 page forum topic but i would urge anyone who has had or is currently having problems with Logbook Loans to read every post (yes all 11 pages) as it does make very interesting reading and also touches on a lot of legal points.

Before i post the link can i just point out a key point of what you will learn from the information and that is that when a client signs up for one of these logbook loans its not actually the logbook that the vehicle is secured on its actually a "Bill of sale" that you sign at point of loan inception.

Yes they will take the logbook but anyone can "buy" them 10 a penny from DVLA who have an endless supply !

Also at this point its worth noting that being in possession of a logbook and it being in your name has nothing to do with the actual ownership of a vehicle and ownership is best proved with a bill of sale from the previous owner.

(I learned that from enquiring about taking on an abandond vehicle, yes i can have it and yes i can also "buy" a logbook for it in my name but if the previous owner ever comes along to claim it or someone else with a bill of sale from the previous owner then you have to surrender it or it becomes theft - you see, the bill of sale seems to be king in this grey area).

Right back to the point, upon inception of the loan you sign a "bill of sale" (yes you're effectively handing over complete ownership in exchange for the loan), they then register their interest in the vehicle in the high court making a repossession in the event of a default enforcable without a court order unlike regular vehicle HP that would require a court order to be granted inorder to actually remove the vehicle.

So in a nutshell thats the key point i want to get across but the rest of the information is very interesting but it is sad to read of the nightmares that some of the poor people have suffered by their heavy handed bully tatics and with their operating just within the law (which as we all know is an a$$ and protects them) and sometimes outside the law !

Sorry for the waffling, i hope its helped and the following link is definatly worth its weight in gold !

Right it wont let me post a link so Google "Logbook Loans" and scroll down past all their sales claptrap and look for the Google result = a forum called consumergroup.co.uk discussing them and the thread title is "Logbook loans again"

Best advice i can give this very minute is to hide the vehicle ASAP to stop them "wrongfully" taking it until you can get it sorted out or it will be sold at a BCA car auction within days of repo (its all in the link)

Good luck to anyone in a predicament with this bunch of crooks as you've got a fight on your hands and i hope you all manage to resolve your issues, im also truely sorry for anyone thats fallen behind and been repo'd, i lost my flat to the lenders after a serious illness at a youngish age, they shafted me good and proper as in they tailored the repo and legal fees to eat exactly every penny of equity i had - not a penny more not a penny less - coincidence or deliberate ? thus leaving an ill person homeless, pennyless and starving.

Regards

Express Courier

Luc1

Tommed, I'm in the same situation as you.... but they have taken my car.
As soon as they took my car I went to my nearest court and got a emergency injunction, so now they cannot sale the car until this dispute is resolved in court.

If I was you, I would hide the car and get a injunction on the vehicle, as the only way to get these people of your back.

They're a terrible company, basically loan sharks... I've learnt so much about this company through the Consumer Advice Group forum - would recommend you looking at this.

Brief story of my problem:
-brought the car which was advertised on AutoTrader details were No Outstanding Finance'

- spoke to LBL to get confirmation... and they confirmed it was settled by the woman's partner 5wks prior that day.

- green light to buy the car, had the car 4 months... then a knock on the door at 6:45am Bailiffs on behalf of LBL. They take the car.

- Find out that day, the payment which the woman's partner made was contested 7wks down the line. LBL cant find the lady... but they find out who the new registered Keeper is.. giving this info to the bailiffs!!

- went to court, LBL are stating that when I rang them to see if the car was free from finance, that they're reply was 'yes its clear, but we will be keeping a interest in the vehicle for 2 months.' Why 2 months?! Funny that 7wks later the payment was contested!! Anyway this is there case why they think they own the car.

Again, I really think you need to hide the car… if they will find the car they will take it…. So many stories on CAG forum of them chasing people.etc.

Secondly, take them to court ASAP. This is the only way you will get this dispute sorted. I'm sure they will try to intimidate you, when I went to court the other week, they had a Barrister & solicitor there…. All of this over 5700!!!??

Also, I would reccomened you write a complaint in to OFT over how LBL have acted over this matter, the OFT numerous complaints over this company - they have broken OFT regulations. You can find the report if you google this.

Last thing… You can get the BoS by writing to Her Majesty court service. This costs 5 pounds.

Hopefully you will get this sorted out soon. It will be 3 months to the day I will find out when I get my car back.

Shatners_Bassoon

If you pay HPI and they run the checks and all is good then that's fine.

If you then find afterwards that there is outstanding finance on the vehicle or it is a CAT D etc then THEY are liable for whatever costs are incurred. Get onto them ASAP and let them know avout this!

Shatners_Bassoon

To quote from the hpi website.

"The cover provided is based on the car's value. In the case where HPI provides incorrect data affecting vehicle title (such as theft or outstanding finance), the HPI Guarantee will cover up to £30,000, either in compensation or the costs needed to obtain good title to the vehicle (at HPI's discretion). In the case where HPI provides incorrect data affecting the vehicle's condition, the HPI Guarantee will cover up to £15,000 or 50% of the market value of the car, whichever is the lower."

ArsenalFC

HPI should cover you, get in touch with them.

Does anyone think the loan company themselve are selling these cars and then go on to reclaim them through the above method? Sounds very fishy to me.

Lemonade_Pockets

Shatners_Bassoon wrote: »

If you pay HPI and they run the checks and all is good then that's fine.

If you then find afterwards that there is outstanding finance on the vehicle or it is a CAT D etc then THEY are liable for whatever costs are incurred. Get onto them ASAP and let them know avout this!

Your not wrong however from what the posters above had said the finance against this car has not been secured against the car. Instead the the previous owner has sold the car to LBL in return for a sum of money, i would hypothesise that when the original owner has paid this sum of money back LBL will sell it back to him/her for a nominal fee. This would not show up on HPI check and i doubt HPI would indemnify the OP.

Luc1

Regarding the loan agreement you have with LBL. I've read that many cases that they do not register the car with HPI, the reason is that you (customer/borrower) would be protected in more ways for e.g. you pay 3/4 of the loan off but then default, then under HPI you are able to keep the car.

Where LBL rely on is the 'Bill of Sale'. So you have a 2000 pound loan, with the interest its now 8000. Now they know that you have a bad credit rating, they know you are desperate for credit…. But they also know you will find it hard to complete the payment! It doesn’t matter how much you pay off, you could pay off 7500 of the loan… but you cant afford the rest of the money you owe - well its tough we are coming to get your car! They really don’t care… once they find your car they will sell this swiftly in auction.

I think people got to realize that when you get a loan with LBL and by signing the BoS you have sold your car to them. You might be driving the car, the logbook might be in your name….. But its there's.

Lemonade_Pockets

Luc1 wrote: »

-brought the car which was advertised on AutoTrader details were No Outstanding Finance'

- spoke to LBL to get confirmation... and they confirmed it was settled by the woman's partner 5wks prior that day.

- green light to buy the car, had the car 4 months... then a knock on the door at 6:45am Bailiffs on behalf of LBL. They take the car.

Out of interest how did you know to ring LBL to ask about the finance agreement?
Did it show up on sort of history check or did the Original owner volunteer this information?

Always get written confirmation from the finance company that they have no further interest in the vehicle. Garages do this without fail so if there is ever any recourse they just wave the bit of paper at them.

Regarding the loan agreement you have with LBL. I've read that many cases that they do not register the car with HPI, the reason is that you (customer/borrower) would be protected in more ways for e.g. you pay 3/4 of the loan off but then default, then under HPI you are able to keep the car.

From what you and others have said its not registered with HPI or anyone else because its not a Hire Purchase Agreement (HP). HP agreements have certain rights which normal loans do not, usually referred to as halves and thirds (what i think you were getting at with the 3/4's thing).

Luc1

Also, there has been many stories in papers where they said they have released there interest in the vehicle.... but this is not true... and this also happened to me.

Luc1

Lemonade_Pockets wrote: »

Out of interest how did you know to ring LBL to ask about the finance agreement?
Did it show up on sort of history check or did the Original owner volunteer this information?

Always get written confirmation from the finance company that they have no further interest in the vehicle. Garages do this without fail so if there is ever any recourse they just wave the bit of paper at them.

On the Autotrader advertisment, it said 'no finance on this vehicle' which I have still got. I was not going to take the ladies word, so I told her I will be doing a HPI check, this is where she told me that the finance company details. I thought the conversation with LBL would be sufficent for me to buy the car - how wrong was I.

LP, if only I listened to your advice before I brought the car.
Just you expect these things to be ok. Lesson learnt - I promise you that!