Logbook loan complaints to the OFT are on the rise
A New Report Reveals that the Number of Logbook Loans Complaints are Rising?
As many borrowers are experiencing debt problems due to logbok loans.
Log book loans are referred to as bills of sale, or loans secured against the debtor’s vehicle; the lender keeps the debtor’s vehicle ‘logbook’, or the vehicle registration certificate.
The report was published by Citizen’s Advice Bureau, saying that the number of consumers repaying logbook loans which are worth more than double that of pay day loans. In addition to that, the CAB also found out that on average people with this type of loan had a total of ten separate debts.
There are a lot of debtors filing logbook loan complaints against their lenders, even though they have signed the contractual agreement and agreed to the terms and conditions. These types of loans are often taken out by borrowers that are in desperate need of cash and can fall victim to unfair treatment from lenders when they are recouping payments.
The Office of Fair Trading have received thousands of logbook loan complaints about the questionable tactics and strategies played by logbook companies.
Many of them are focused around bad credit loans
• The lack of protection once you fall into arrears – some customers have had their cars taken for missing as few as a single payment.
• Unfair and aggressive collection processes – includes use of wheel clamping for which a release fee is charged on top of the amount owed on the loan.
• Confusing jargon used in the loan agreements.
Commenting on the findings, Gillian Guy, chief executive of CAB, said: “”Our analysis shows people taking out these loans are often in acute financial strife but lenders aren’t giving all of the information needed for borrowers to decide if a loan is right for them.
Any decent lender knows it is irresponsible to lend to people who already struggling.
People struggling with their finances should be directed towards advice, not more debt