Proposed Protections for Logbook Loans

[theoldrouge]

the law commission has opened a consultation to give consumers greater protection

 

when taking out a logbook loan

 

http://www.lawcom.gov.uk/unfair-law-fails-to-protect-logbook-loan-consumers/

 

 

 

September 9th, 2015

 

Unfair law fails to protect logbook loan consumers

 

Logbook loan borrowers have too little protection – and those who unwittingly buy cars subject to logbook loans have none at all.

 

Today the Law Commission opens a consultation to reform the archaic law underlying logbook loans – the “Bills of Sale Acts” – which remains unchanged since Victorian times.

 

Logbook loans are a way for borrowers to use their cars, vans and motorcycles as security for a loan. The borrower keeps possession of the vehicle and may continue to use it while making repayments. But if the borrower fails to pay, the lender is entitled to repossess the vehicle without a court order. Borrowers lose the vehicle they need and are often left with a large outstanding debt.

 

 

Edited September 9, 2015 by citizenB
added quote

[Conniff]

This really isn't before time. Surely it would be simple enough to just have the same regulation as HP attached to it, easiest way all round, well except for those that offer the loans in which case the government should supply them free tissues.

[citizenB]

I agree, about time too.

[citizenB]

The Consultation closes December 2015 - I hope they don't take too long to publish the results.