Can I challenge a log book loan

[katiexx]

Hi

 

Does anyone know if I can challenge a log book loan?

 

I took out a log book loan in June 2011, when I spoke to the person down the phone I was told the only condition was that I had to keep the loan for a minimum of 3 months and then I could pay off the balance.

 

The gentleman drove down from the north on the same day printed off some documents put me in the car and drove me to a solicitors office. I did not see the forms but was happy with what the lady had told me down the phone. I was later sent an unsigned credit agreement and my vehicle documents back. I have since found out the person that issued the loan is in fact a sole trader. I was under the impression it was a large organisation. I have requested a copy of the bill of sale and am awaiting this to arrive.

 

I tried to settle the account in April 2012 and then found out I had been tied in for a 2 year fixed term. So in short I am being charged £3400 for a £1000 loan. I feel I have been mis-sold this as it is definitely not was discussed with me down the phone.

 

So am I am to challenge this is anyway. I would have been insane to knowingly sign into a 2 year fixed term agreement.

 

K

[steampowered]

So, what did you actually sign? Did you sign a 2-year loan agreement? I think you should be asking the lender for a copy of that document.