Logbook loans have provided many people in the UK with a way to borrow money without being subject to a credit check—this means that even those people with poor or nonexistent credit scores have a way to borrow large amounts of money.
Even though this is great news for borrowers, there are some downsides of logbook loans. Some people are deciding to take out a logbook loan on their vehicle and then sell the vehicle to an unsuspecting consumer with the logbook loan still attached to the vehicle.
This can have very serious consequences and often results in the seller of the vehicle being taken to court whilst the buyer tries to reclaim thousands of pounds.
The Lender Wants to Repossess Your Car, What Can You Do?
If you have recently purchased a vehicle with an outstanding logbook loan then don’t be surprised if you receive a letter threatening repossession, or even if an enforcement officer turns up on your doorstep.
Unfortunately, you might not be able to stop your newly purchased vehicle from being repossessed, but here are some things that you can do to protect yourself as much as possible:
Any legitimate enforcement officer will be carrying an identity card along with a letter stating that they have authorisation to repossess the vehicle. Ask to see these documents.
Ask to see the logbook loan (bill of sale) document.
Make sure to get all details in writing from the enforcement officer, this includes the following: the logbook loan company they work for, and confirmation of what has been taken.
Always remember never to compromise your own safety and don’t hesitate to contact the police if the enforcement officer is acting aggressively towards you.
If your vehicle is about to be repossessed then the best thing to do is cooperate—preventing an enforcement officer from repossessing a vehicle which they have a legal right to repossess could get you into more trouble.
Has Your Car Been Repossessed?
If your car has been repossessed then there are a few steps that you can take to get your money or your car back.
First, you should contact the seller and explain what has happened. The seller might be willing to give you your money back if you are insistent. However, the chances of you getting your money back from the seller will be low considering that they knowingly sold you the vehicle with an outstanding logbook loan.
Your best option would be to get the contact details for the person who sold you the car and take him/her to court. Remember to seek legal advice before you do this and you’ll have a good chance of getting your money back.
Protecting Yourself in the Future
Unfortunately, there is only so much that you can do if you have purchased a vehicle with an outstanding logbook loan. It’s important to know how to protect yourself so the same thing doesn’t happen again in the near future.
There is actually quite a lot that you can do to protect yourself when purchasing vehicles in the near future. For more information, read our article on Protecting Yourself from Logbook Loan Scams.