Common Complaints About Logbook Loans

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I have pretty much discussed the convenience of logbook loans as well as the disadvantages so let me also discuss the complaints I hear about logbook loans. There are so many people who fall victim to bad logbook loan deals and you should try to not be one of them. Logbook loans are a great deal of help if you take it out with care and keep up with the repayments but once you get one in a rush without considering how the terms could affect you, it will be very difficult to find a solution.

  1. Interest rate is too high – I already discussed this from an earlier post and I cannot stress how high APRs are on logbook loans. You have to understand that what they advertise isn’t always the rate you are going to get so make sure you ask for a computation of the whole amount you will end up paying after the term and see whether the interest rate is fine by you. Logbook loans are expensive because of the high risk these creditors have as we have already established before.
  2. Tricky – more often than not, the reason many people complain about logbook loans is that they don’t read the small print on their loan terms. Now, once a problem arises, the logbook loan company will say that the policy is there in your debt agreement and you cannot do anything about it anymore. Lesson here is always read even the smallest print you see on the contract and ask as many questions as you want before signing. If at any time you think there is something that’s not clear, have it cleared ASAP.
  3. You car may not be enough to pay off your debt – even after repossession; you might still owe the logbook loan company some money. When they take your car, they sell it at an auction and it may very well not get the price you wish for it. Let’s say your car is auctioned at 1500 pounds and you owe 2000, you will keep on paying for the remaining 500 pounds.
  4. Lack of protection – this is easy to understand but hard to accept. In fact, the hardest to accept because you never expect to be a victim of this kind ever. When you surrender your V5 document and a Bill of Sale has been properly registered, the logbook loan company may already repossess it anytime you default on your repayment. It could be after a couple of months or after a day. It’s best to ask how lenient the company is beforehand. Once they take your car and it is established that they are not breaking any policies of fair trade, you cannot do anything about it anymore
  5. Debt collectors can be very annoying – the thing is if you miss your repayment, a debt collector may already harass you. This is very annoying aside from the fact that it is shaming too. The constant calls, emails, letters, which may be charged to you won’t stop until you catch up with your payments. You do have rights against unfair debt collection practices so you can fight back or just talk to your logbook loan creditor and arrange something with them directly.

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