Veni Vidi Vici
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Just seen this on Watchdog. Apparently due to the financial crisis many companies are now offering log book loans. This means people can use their car as collateral when taking out a loan. The problem is people are selling their car on before clearing their loan. This means the new buyer can have the car seized and you will have to pay the balance of the others persons loan to get the car back. And this is entirely LEGAL and the log book loan may not show on any HPI check.
That's because in England and Wales log book loans aren't covered by modern-day consumer law. They come under a very different law: the 19th Century 'Bills of Sale Act'. The Victorians introduced it to stop people from defrauding lenders when taking out loans. In those days, you couldn't secure it against something like a car.
BBC - Watchdog: Inherited a log book loan? You're not alone...
That's because in England and Wales log book loans aren't covered by modern-day consumer law. They come under a very different law: the 19th Century 'Bills of Sale Act'. The Victorians introduced it to stop people from defrauding lenders when taking out loans. In those days, you couldn't secure it against something like a car.
BBC - Watchdog: Inherited a log book loan? You're not alone...