Huge interest in Log Book Loans

A tip from MTI unless you are really, really desperate steer clear of Log Book Loans. They give credit to customers who have been refused credit elsewhere and are truly on their knees, if a customer has a car they own or with very little outstanding finance this company will retain the registration document (V5) as security and loan money against it, which is a fairly good concept except that to borrow £1500 over 6 years will cost a staggering 437% in interest which equates to £4,180 total amount payable or £34.37 per week in interest alone. As the crunch bites these kind of loans may seem attractive but our advice is no matter how desperate you get take a long hard think before you offer your car as security for a loan as expensive as this.

For an interesting forum thread on real people’s experiences with Log Book Loans go here…

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4 Responses to Huge interest in Log Book Loans

  1. Graham Hill October 23, 2008 at 10:28 am #

    I agree with your comments. In fact the Government has taken steps to remove loan sharks but there are still many operating in a sector that will continue to grow as we move into recession. My advice is steer well clear of these types of lenders and seek advice/finance elsewhere. First check that you are receiving all the benefits you are entitled to by contacting Social Services Benefits. If you are concerned about bills contact those that you owe money to and talk things through with a debt councillor. If you need to borrow money it is also a good idea to see if there is a credit union in your place of residence or place of work (both qualify) as they don’t charge high rates and would be sympathetic. The problem with log book loans is that they don’t stop with the car. If you cannot make the payments they may not only reposess the car (which they should only do under the direction of the court but would probably ignore that procedure as they have the log book) but once the car has been sold if there is still money owed they will take action to reposess other property to recover it. My advice is avoid these people even if you are desperate, they also tend not to be nice people.
    Graham Hill
    Author – An Insider Guide To Car Finance

  2. Jacqui November 13, 2008 at 1:47 pm #

    I had a loan from Logbook Loans, and your right I was desperate at the time so I thought yes this sounds ok, but the reality is that these people do make it worse for you! My loan was for only £2500, and was payable over 4 years, I paid on time every week for nearly 3 years then of course things started to go bad when I missed a couple of payments. They send you reminders and phone calls and then these are then added to the amount you owe which is an alarming rate, but of course you don’t know. On a number of occasions I rang Logbook to settle the figure but after 3 years the amount I still owed was still at over £4000!!!! Yes, and remember I was paying £50 a week for 3 years, so how could this be? I then decided to go to Trading Standards and explained everything to them and with their help I got the remaining £4000, written off, because they had actually not fulfilled the contract legally. So my suggestion is to anyone whom is having problems with Logbook Loans to go and seek legal advice, it may save you alot of money!!!!

  3. Uncle Buck May 20, 2009 at 4:58 am #

    The way they charge is seriously horrible. I am just surprised how companies like these manage to escape government scrutiny.

  4. Frank Polenose January 6, 2010 at 12:33 pm #

    As with all these type of loans – if you agree the repayments you are happy. Then if you pay the loan back on time – you are happy. People only get in trouble when they don’t pay it back!

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