Every year thousands of borrowers and unwitting buyers of second-hand vehicles are falling victim to unfair logbook loans.
Logbook loans are a way for borrowers to use their car as security for a loan. The lender takes on ownership of the vehicle but the borrower can carry on using it. Borrowers who miss payments can swiftly face repossession of their vehicle as well as a rapidly increasing the outstanding loan and incurring high charges – even if they have already paid off most of their loan. More worryingly, anyone buying a second-hand vehicle that is still subject to a logbook loan can find themselves liable for any outstanding amounts on the loan and can unexpectedly find themselves losing the vehicle or having to pay off the loan.
In a report published recently by the Law Commission, it was recommended that changes are made to the law that would make this form of lending fairer for borrowers and offer greater protection to people buying second-hand vehicles that are still subject to these loans.
Michael Flaherty, comments “It is high time the law was reformed to bring protections to both logbook loan borrowers and the unwitting purchasers who, in all good faith, buy second-hand vehicles that are still subject to these widely used and unfair loans.”
If you would like assistance in relation to a consumer or debt matter, call Michael on 01329 822333 for further information.
Research just published underlines how ill-prepared most people are in terms of their end of life planning.More Info
According to a recent study published by The Lancet, it is estimated that in the next twenty years, the number of over-85s requiring around-the-clock care is set to double.More Info
Vulnerable offenders with mental health, alcohol and substance abuse issues are addressing the underlying cause of their offending, as part of a pioneering new government backed scheme.More Info
In a sign that the courts are taking the vulnerability of victims more into account when assessing punishments for the guilty, a gang of robbers have recently had their sentences increased.More Info