Log Book Loans - Car going to be repossessed

Tim50_2

Hello,

I have searched the web regarding Log Book Loans and have seen that there are hundreds of other people with problems. I am getting severely depressed about my debt and hope if anyone can give any advice it would be much appreciated.

I took a loan out a while ago as I was desperate for £1300 (to pay another debt!). I know it was a stupid mistake and I wish I never had but I did. I couldn't keep up with the payments and started receiving daily calls and letters. I recently was notified that every time they call and leave a message or send a letter they charge me £12. I moved house and naively hoped they would disappear but when I had to pay my road tax I had to change my log book details. I never gave them my log book or spare key when I got my loan but I found that, that was irrelevant as they contact the HPI and inform them of the debt.

They somehow got hold of my work number and kept plaguing me with calls. My colleagues found out much to my embarrassment. To stop them ringing my work I gave them my new mobile number and received a voice mail a while ago saying that my debt had been passed to their pre-repossessions department. They told me I must pay £100 a week until the outstanding arrears we sorted. Currently from an original debt of £1300 I have paid a total of approx. £1500. However I was told recently that there is still 8 months worth of debt to pay at £50 a week and on top of that they said I am behind by £800 and on top of that there is all the charges they will add for phone calls and letters. I spoke to them last week and they said I had to pay £300 immediately or they would pass me to the reposseions department and my car would get repossessed next week. I have no money to pay them. I can't afford £50 a week, let alone all the money they say I owe them.

I have finally come clean with my partner and told her about this debt which feels like a weight of my shoulders. She says we should contact trading standards which I want to do but thought I would leave a post on here and see if anyone could help with any advice.

I know at the end of the day it is my own fault. I signed the papers agreeing to the charges and at the time all I cared about was getting the £1300. The agent who gave me the papers to sign shoved them in front of me and I didn't even bother looking at the small print. I am the one to blame but feel agrieved that an alleged legitimate company with a credit license can charge so much and make my life like so many others a living hell. Any help would be much appreciated. Thank you, Tim.

suburbanwifey

From what you have said there seems to be little you will be able to do. The debt seems to be growing, rather than decreasing. You are trapped in a cycle that it sounds impossible to get out of.

I know it sounds drastic, but if at the end of the day they repossessed the car and sold it to pay off the debt, would that not be the best thing? if there is no way to pay their exorbitant charges etc.

I'm not sure trading standards could do anything, as it will all be there in the terms and conditions and effectively, you did default on the loan. That's why companies like these are so dangerous to get involved with.

Let them take the car, sell it and clear the loan. If the sale doesn't clear the loan, let them CCJ you (your credit will be trashed anyway) and offer the court what you can pay...that may be as little as £1 a week. They cannot take what you don't have.

It sounds awful

Tim50_2

Thanks very much for your help, can anyone else offer any advice?

Thanks, Tim.

Kimitatsu

suburbanwifey wrote: »

From what you have said there seems to be little you will be able to do. The debt seems to be growing, rather than decreasing. You are trapped in a cycle that it sounds impossible to get out of.

I know it sounds drastic, but if at the end of the day they repossessed the car and sold it to pay off the debt, would that not be the best thing? if there is no way to pay their exorbitant charges etc.

I'm not sure trading standards could do anything, as it will all be there in the terms and conditions and effectively, you did default on the loan. That's why companies like these are so dangerous to get involved with.

Let them take the car, sell it and clear the loan. If the sale doesn't clear the loan, let them CCJ you (your credit will be trashed anyway) and offer the court what you can pay...that may be as little as £1 a week. They cannot take what you don't have.

It sounds awful

the thing is with LBL selling the car will not pay off the debt - there are many charges they will add to it, the cost of the bailiffs, the cost of removal, the cost of storage and the cost of sale.

You need to go and get advice from your local CAB, dependant on how long ago it was signed and where it was signed you may have recourse under the consumer credit act (the paperwork last time I looked at it did not abide by the act in its entirety but I have not seen a recent agreement), you also need to check with the high court that the bill of sale has been correctly filed (you can ask for a copy of it for about £10 I think) and you need to ask for a copy of your file under the Data Protection Act.

Can you make an arrangement to pay something off to prevent repossession whilst this is going on? If you can then you are in a good place to argue about it - its a little more difficult if the car has been reposessed and you cannot get out or to work?

If when you get to the CAB they are not sure about it - get them to contact the specialist support unit, they have a mass of information on these guys and should be able to help.

Try not to worry (I know easy to say) and take care

Tim50_2

Thanks very much for your help, will do.

Anihilator

You need to work out your finances and what you can afford to repay them and when.

If you call them and offer a decent enough set payment at intervals based on full and final settlement then it may solve the problems.