Log Book Loan Question

Nat1977

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DevCoder

No.

It makes them inaccurate and that can (and will) be rectified, but it doesn't make them void to the point that the loan no longer needs to be paid back.

bigadaj

Worth trying though.

Mr_F_Dorsetty

Nat1977 wrote: »

If the Bill of Sale and the Credit Agreement have different repayment amounts showing on them, does it make either one void?

No. The reality is if you've borrowed an amount, that is that, it is not some 'made for TV docu-drama' with a clever twist.

But I'll give anyone thinking of doing a 'log book loan' some free advice, think long and hard before going this route.

A depressingly high amount of people fail to clear pay day loans.. but at least they can roll them over. With most of the log book loans if you don't pay, the car is gone and it seems anecdotally that nearly as many are failing on log book loans as pay day loans.

A cautionary true tale:

In the 80's I knew a guy who had a forecourt of really 'nasty' cars. But he did personal finance, with his own money. So no credit checks, no nothing. If you turned up and said you could pay £100 month, then after you had paid a £100 fee (probably what the car owed him!) you'd be the happy driver of the world's most horrible ex-taxi Austin Montego... or similar dross.

But if they missed ONE payment by even a minute, at any point of the 60 payments required before the car was theirs - the car went back and they got nothing, effectively/legally they rented it by the month. He had two HUGE steroid eating guys with a tow truck, who spent all day every day, reposing these cars.

He couldn't lose, if they paid he got a fortune for rolling scrap and if they failed to pay he got to sell the same cars time and time again. He was very soon a millionaire.

It strikes me with these log book loans and without prejudice to anyone, they may well be not too upset if you default. Many seem to leave a lot of equity in the car. You know a £3k car and you've been allowed £500... there's proper money to be made on a default.

So imo, unless you're very sure you can pay it back and you really have no other option, as even selling a kidney seems a better idea, then again only imo, do not risk your car which is probably how you get to work in many cases.

Ultimately it seems to me better to default on a debt and sort that out than dig a truly vast hole with a really bad loan. :eek: