Log Book Loans

[chebrashka]

Hello

 

I took out a log book loan in Jan 2008 for £1700.

In november 2008 I had financial difficulties and defaulted Nov 15th.

I was sent a termination notice Dec 15th.

I phoned them in December to ask how much I owed them, they sent me a settlement figure of almost £3000.

Today I got a writ ( i live in scotland ) aking for the £3000 plus my car, if they cant gain posession of the car then they want another £2700 ??

I have already paid them £1900 so in total they are asking for £7600 for the initial loan amount.

I have contacted tradng standards and im awaiting their response.

 

Do the figures sound right ? and why has the amount I owe them doubled in less than a month ?

 

They also call it hire purchase rather than a bill of sale.

 

Thanks

Edited February 4, 2009 by chebrashka

[Fleeced73]

PLEASE PLEASE PLEASE remember the golden rule - there is far too much information being posted on here, LBL trawl this site looking to identify those 'customers' who may pose them problems, they don't play by the book in the slightest and you are putting yourselves at risk of immediate 'overnight repo' - these people break all the rules and often don't even bother with paperwork so please be cafeful - stealth is the word!

The facts of each case are irrelevant anyway, you should all seek immediate action against them as their loans are both unenforcable and illegal, and the outcome of any court hearing (and there are plenty in the pipeline) will eventually confirm this.

If anyone is in any doubt of LBL's dodginess, read this report which smacks of a [problem] gone wrong.

eBay buyer’s court victory as £24,000 car is returned - News - getwokingham - The Wokingham Times

 

Ask yourself:

1) Why 'bailiffs' (they aren't) called for the car at 3AM if what they were doing was legal and above-board

2) Why on earth £60K came to be owing on one vehcle

3) How a car could be sold and a loan obtained without actually owing that car. Proof of how many us suspect LBL are hand-in-hand with a few real-life Arthur Daley's - how many (as a percentage) of their misdemeanors reach litigation? Not many, I'd bet.

 

Also, for those who haven't seen this before:

The Logbook Loans Scandal - The Sunday Mail

Edited February 5, 2009 by Fleeced73

[chebrashka]

anyone have any advice ?

 

Thanks

[Fleeced73]

Yes - Hide your car (do this at all costs and do it NOW) somewhere they won't find it, contact your local mp and a lawyer. Once they the car they hold all the aces, at the minute you can do something to stop them

[jaxads]

Hi Cherbraska

 

As fleece advises - keep the car well hidden until you can get this sorted out. If LBL send round their recoveries agents and they see the car they WILL take it away.

 

You said you took out a loan of £1700 back in January - was this for 58 weeks??

 

You roughly pay back just over double, which would make the loan say approximately £3500

 

Yet they are saying that you still owe another £2700.

 

The figures don't seem to add up at all ??

 

You need to telephone them and request they send you, urgently, a statement of account.

 

This will detail all transactionson the account including any charges they have added (which looking at the figures could be quite a few:mad:)

 

Remember, if the recoveries agents turn up, they cannot take what you haven't got! Keep the car out of the way.

 

Post back again once you have a response from LBL regarding the statement of account.

[chebrashka]

Thanks for replies.

The loan was over 104 weeks.

They are also asking for a years interest to be paid up until 2010 ??

Surely if it is paid off now I shouldnt be liable to pay this interest ?

I will post up the scanned court writ papers later today as well as the original agreement.

Im sure the amounts in the writ are wrong, im still awaiting trading standards to get back to me also.

Statement of account requested today.

I no longer have the car, so no need to worry about it being taken away.

[caro]

They can't ask for interest on the whole loan if you're settling early. In all honesty I'd be sorely tempted to let them take you to court and explain to the judge how they've calculated their figures. It would be interesting to hear what they have to say.

 

The Office of Fair Trading are well aware of LBL and you may find these links of interest.

 

The Office of Fair Trading: Log Book Loans

 

http://www.consumeractiongroup.co.uk/forum/log-book-loans-bills/139568-logbook-loans-desperate-situations-2.html?highlight=office+of+fair+trading#post1513218