Auto Advance Logbook Loan help

ymuz

Hi folks

Hope somebody can advise!

I am trying to get a grip on my debt and basically sort my life out after a period of mental ill health and unemployment.

I stupidly took out a Logbook Loan when I was needing to pay rent last year and then I couldn!!!8217;t afford to pay it back.

I!!!8217;m however working now and would like to resolve it but I need some help with negotiating.

I have no problem paying the full balance but I cant do it in one lump sum.


But that has been rejected with the following (sent via their solicitor by email.

!!!8220;Unfortunately we cannot accept the below proposal.

The loan agreement has an end date of 28/01/2019. That means this loan needs to have a zero balance by this date. We will be more than happy for the customer to pay the arrears + payment falling due on 28/06/2018 + fees, retain the use of the vehicle and resume normal monthly payment monthly from July 2018. On this basis the agreement will have a zero balance by the loan maturity date.

Alternatively we should proceed to court action and obtain a decree of delivery or the customer can simply surrender the vehicle to resolve some of the debt.!!!8220;

I am paying about £800pm on other debts to try and clear things and just don!!!8217;t know how to resolve this with the least amount of heartache. Giving the car back is not an option.

Any advice out there on how best to deal with this? For info, I am in Scotland.

Best wishes to all.

[Deleted User]

If giving up the car isn't an option, you need to find a way to make up the arrears by 28th June.

Look at where you can cut costs, including what state your other debts are in.

ymuz

Thanks, but raising £5k by the end of the month won’t be possible.

[Deleted User]

Then you need to look at getting a cheap runaround so you still have transport.

[Deleted User]

How much did you borrow and what is the normal payment? Owning £5k with only 7 months to go sounds like a lot of arrears - I'm surprised they haven't repossessed the car already.

ymuz

The arrears are £2975.10
The balance is £4561.82

Full settlement plus expenses £4958.03

I made one payment of £198.34

Is there any way they can be forced to accept my proposal? What happens if they can!!!8217;t recover the vehicle?

Brock_and_Roll

What is the car? What's it worth CAP trade value? Obviously this might be an influencing factor in how hard the log book loan company want to play this.


However, presumably they lend against value of car so as ZX81 correctly states, you need to sort alternative transport out.

ymuz

I don!!!8217;t have the car anymore, that!!!8217;s the problem.

Brock_and_Roll

ymuz wrote: »

The arrears are £2975.10
The balance is £4561.82

Full settlement plus expenses £4958.03

I made one payment of £198.34

Is there any way they can be forced to accept my proposal? What happens if they can!!!8217;t recover the vehicle?

Why would then not be able to recover it? If you "hide it" then you are not going to be able to use it which is kinda pointless as it will be like cutting off your nose to spite your face.

[Deleted User]

ymuz wrote: »

Is there any way they can be forced to accept my proposal? What happens if they can!!!8217;t recover the vehicle?

No.

If they can't recover the vehicle because you're hiding it, I assume it will become a criminal matter, as they hold title to the car.

I wouldn't go adding to your list of problems.

ymuz

Apologies, not sure why the formatting isnt working when I put in an apostrophe - posting from phone.