Log Book Loans
Carry out security data checks
We welcome the news that Financial Conduct Authority is taking a closer look at the issue of Logbook loans.
Operating under the Dickensian laws of “Bill of Sale”, these loans often don’t show up on the usual finance checks, and the “lender” doesn’t need a court order to repossess the vehicle, they can effectively turn up with a recovery company and seize the vehicle.
Citizens Advice recently expressed concerns that up to 60,000 logbook loans could be taken out this year which is 61% more than in 2011, and possess a significant risk to both customers and car dealers.
We would remind dealers to always carry out full back ground checks on all cars, not to accept delivery of a car without a V5 and take at least two forms of the seller’s ID if the V5 is in a different name or different address.