Logbook loans scams have been on the rise recently, with more people realizing that they can take out a logbook loan against their vehicle and then sell their vehicle on to an unsuspecting buyer.
If you don’t know what you’re looking for when purchasing a secondhand vehicle, you could soon find out that the vehicle has an outstanding logbook loan. This could result in the car being repossessed and you’ll be thousands of pounds out of pocket.
Throughout the next few sections we’re going to tell you how you can protect yourself from logbook loan scams.
Do the Standard Checks on the Vehicle
It’s common knowledge to do standard checks on any vehicle before you even think about purchasing it from someone you don’t know. You should carry out the checks to ensure the vehicle is running smoothly, efficiently, and exactly how the buyer described.
In addition, you should also make sure that the Vehicle Identification Number (VIN) matches the number on the logbook. The VIN can usually be found in the lower-left corner of the dashboard, close to the steering wheel. If you can’t find the number there, then check at the front of the engine, and the front of the car frame.
Carry out a Quick HPI Check
A Hire Purchase Information (HPI) check is a quick and simple check that can be done online in just a few minutes. All you need to do is a find a website that carries out these checks—make sure that it’s a legitimate website and displays the official HPI seal—enter the car’s registration number and your email address. You’ll have your report in just a few moments.
Keep in mind that these checks aren’t free, but they’re not expensive either—you can expect to pay just a few pounds.
It’s extremely important to carry out one of these checks, as www.hpicheck.com points out, every 1 in 3 cars that they check has something to hide. These reports are also backed by a £30,000 guarantee meaning that you’ll be protected if the information is wrong.
Get a Receipt and Contact Details from the Seller
Conducting a HPI check is a great way to protect yourself from logbook loan scams, but it’s not the only thing that you should do. You should also get a receipt from the seller (you can find templates of receipts online if you want to take one with you), as well as the seller’s contact details.
This will give you peace of mind and provide you with an extra layer of protection if the data on the HPI check turns out to be incorrect.
Complaining about a Logbook Loan Company
The most trustworthy logbook loan companies are members of the Consumer Credit Trade Association (CCTA). This association has a code of practice, meaning that its members can only operate under certain terms. Any logbook loan company registered with the CCTA must register the loan so that it shows up during a HPI check.
If the logbook loan company is a member of the CCTA then you can complain directly to the association. You can find more information by going to their website: www.ccta.co.uk.