log bok loans have added £540 of charges to my account!!!help!!

nickgentv6

Hi,
I took a loan out with Log Book Loans at the beginning of the year as i was really really desperate,im just over half way through the term and i want to settle the full amount so they have sent me a statement through of what i owe and there is £540.00 worth of charges!!!
these charges include phonecalls and letters @ £12.00 each time!
I really want to get out of this mess and im wanting to pay what i owe on the loan but i cant afford the extra £540.00 especially this close to xmas.
Can they justify these and is there any way of getting out of these if im wanting to settle? by the way the loan is 437%apr so they had my pants down already!

Any advice about the charges would be really really appreciated as i do not know what to do!

davidjwest

Check the agreement you signed and see if it mentioned these charges or not - if the charges aren't documented in any agreement then you shouldn't have to pay them. However, I suspect they are documented and you're pretty much stuffed.

I'm not sure how the FSA allow companies to charge such extortionate APRs, I thought loan sharking was illegal? All this red tape that the government has introduced and this kind of theft still goes on legally it would seem.

Good luck and keep us posted.

nickgentv6

davidjwest wrote: »

Check the agreement you signed and see if it mentioned these charges or not - if the charges aren't documented in any agreement then you shouldn't have to pay them. However, I suspect they are documented and you're pretty much stuffed.

I'm not sure how the FSA allow companies to charge such extortionate APRs, I thought loan sharking was illegal? All this red tape that the government has introduced and this kind of theft still goes on legally it would seem.

Good luck and keep us posted.

Hi,
i thought the FSA would be a good port of call, but all i got from them is "we do not cover the loan sector of the financial market, you will need to try somewhere else"
so thats why im here!!
thanks

MrsTinks

Sadly that APR isn't particularly high (it may seem high, trust me it's peanuts compared to Quick Quid for example... ) but you need to check your agreement about the charges... Once you have paid the loan off you might have a case for "unfair charges" but priority number 1 is getting your logbook back!

duggie1982

Must have been a fair bit of phonecalls and letters sent then. I take it they only add charges like this if they are chassing payments etc? If so then most companies do charge for this type of service.

Luc1

Ask them to send a letter out breaking down the charges.... Im sure they wont, but, ask them. Also sent a letter of complaint to Office of fair trading stating that you want to pay the loan off but LBL have added all of these chages.

Also Nick, post your message on Consumer Advice groups website...
Here you will find so many posts on Log Book Loans!

Luc1

Nick, have a look at this:
http://www.consumeractiongroup.co.uk/forum/log-book-loans-bills

nickgentv6

Thanks for the link!!! theres some very good information regarding Log Book Loansharks
Thanks Again!

orc_2

Luc1 wrote: »

Nick, have a look at this:
http://www.consumeractiongroup.co.uk/forum/log-book-loans-bills

There is a lot of expert help available there on log book loans. They should be able to advise you.

The charges can be pursued in a similar way to bank charges- same principle applies.;)

Luc1

No worries Nick.

Nick, how many letters have they sent you and how many phone calls have you received?

Luc1

orc wrote: »

There is a lot of expert help available there on log book loans. They should be able to advise you.

The charges can be pursued in a similar way to bank charges- same principle applies.;)

Right, but surely there must be a cap on how many phone calls/letters they can send??

I mean £540 within a space of a few months….. That works out that they contacted Nick 45 times… a bit excessive don’t you think?