Logbook loan HELP

k8270

Hi I am in need of some advice, I am fully aware of my stupidity and have kicked myself several times.
I took out a logbook loan for £2500 in July 16` they took my student loans and my child's disability living allowance into account for my income (Iam aware now they should not have) when the Bill of Sale was registered the V5 was in my previous name, not the name the loan was taken out in is that allowed to do that?
During the first month after taking out the loan my financial situation dramatically changed through no fault of my own without warning. I contacted them regarding this, the response I got was that they will just take my car until I stood my ground and I spoke to the area manager the repayments were reduced and I was paying fine.
Last month I had a car crash my car was written off obviously when they have done the check the logbook has come up, the payout for my car is £4725 I asked the loan company without making them aware of the crash for a resettlement figure its currently at £4900!! I have already paid £1200 back on the loan is there a way of my insurance pay out to come to me and not them? I have no car and the loan company will have over £6000 for £2500 loan.
I am aware that the loan was secured but this just seems very unfair I need my car for my disabled son etc PLEASE HELP

[Deleted User]

I believe any payout will go the lender, who will have registered their interest in the vehicle.

You would then be responsible for any shortfall in the oustanding value of the loan.

pappa_golf

when you took out the loan was the rate not clearly stated along with the amount that was re payable?

forgotmyname

What was the original repayment amount on the £2500 loan? £6000?

Or was it only £6000 after your change in payments?

If settled early it may save you some interest? So would it have been more than £6000??

Good news your debt will be clear.

iolanthe07

Good news your debt will be clear.

Well, no - it might not be. Most of these logbook loan rates are usurious and often the terms are ruuthlessly enforced; the OP might be chased for any shortfall, as ZX81 stated in post 2. Citizens Advice might be able to help.

bris

It's not unfair, it's what you agreed. True it's a lot but the bottom line is you took out the loan, you have no reason to claim it as unfair now.


Harsh, maybe but they have the security and you got the money, it's just unlucky it ended this way.


On a plus side at least you will be debt free, that was a high interest debt that would have stayed with you for a long time.

Alderbank

Your disabled son receives DLA. Assuming this is the higher rate you can use some of that to pay for a brand new Motability car for you to use for his benefit. Much better use of his DLA than spending it on log book loans

k8270

Alderbank wrote: »

Your disabled son receives DLA. Assuming this is the higher rate you can use some of that to pay for a brand new Motability car for you to use for his benefit. Much better use of his DLA than spending it on log book loans

You have no idea of the situation I was in at that time, what if it was my only option at that time to feed my children and keep a roof over there heads I asked for advice not to be made to feel like even more than I already do like a failing mother and my son get low rate mobility for his DLA

iolanthe07

k8270 wrote: »

You have no idea of the situation I was in at that time, what if it was my only option at that time to feed my children and keep a roof over their heads I asked for advice not to be made to feel like even more than I already do like a failing mother and my son get low rate mobility for his DLA

Honestly, I think this response is a bit over the top. Alderbank's post was well meant and, I thought, very helpful. No one is deliberately unkind on this board, especially to new posters, but there are lots of warnings about the often dire results for those taking out log book loans.

fatbelly

I'd try NationalDebtline for help.

This is their factsheet

https://www.nationaldebtline.org/ew/factsheets/pages/billofsale/logbookloans.aspx