log book loans repossesion 30 December 2010 at 6:22PM edited 30 November -1 at 1:00AM in Budgeting & Bank Accounts 3 replies 720 views

daffas6688

Hi my daughter received a letter saying as she was the owner of a car, that had a log book loan secured on it, she was liable for outstanding debt. She had no idea what thay were on about and has has the car for over 2 years. Apparantly the man who sold the car to an auction who then sold it on to another man, was the one with the loan . My daughter was in fact third in line from the original debtee, but because she was in posession of the car it was now her debt! Log book loans had been to court for the original man but in his absence had let log book loans able to chase my daughter. The amount they wanted was well over what she paid 2 years ago and certanly not what it is worth. The loan company said she could pay that amount and she could keep car or they would sent somone round to get it. She has 2 small children and is worried. She wrote to them explaining the car only worth quarter of what they want if lucky and she indeed was an innocent victim in all of this. ( she was advised to do this by trading standards). They replied with a slightly lower figure but she has not replied as of yet. How can this happen when she even used the text message service to check if car ok to buy? Also how is she liable for anothers debt and surely they have to now take her to court to get possesion? Any help please. Thanks Daffas

PNPSUKNET

you need to run a full hpi check, but if the car had a secured loan against it you need to report the fraud against your daughter to the police.

PaulW922

Firstly, a search against LBL online will bring up lots of horror stories. Don't assume that they will respect your rights.

To clarify, your daughter is NOT responsible for the loan. End of story. However if the car had finance secured on it then it was not for the original debtor to sell, and so in theory any further selling on should not have happened either. In practice, there is precedent for this kind of thing and in your daughters case it is very unlikely that the charge on the car would be upheld in court given that she is so many buyers away from the debtor and bought it in good faith. The risk is that LBL just come and take it - and they would. they are that kind of firm. I would recommend that she visits the CAB as soon as possible and in the meantime keeps the car somewhere else. LBL have received a final warning from the OFT over their collection practices so I would expect CAB to know about them.

BenL

There was information on these forums that LBL cannot take the car from private property, get it on your drive and blocked in by another car (or hide it until its sorted). As a previous poster has mentioned, there are lots of horror stories regarding this firm. Unless you buy your car brand new you are at risk of this happening. No HPI check will show this LBL outstanding.

Ben