Log Book Loans - Bill of Sale

[SillyFool]

Hi All, was wandering if any could offer me any advice (apart from don't go to Log Book Loans!!).
I was silly enough to unfortuantely be drawn in by these people and am now suffering the consequences. Without going into too much detail at the moment I have discovered that back in 2006 Log Book Loans were told by the OFT that some of the Terms in their Bills Of Sale were unfair. I therefore forwarded my Bill of Sale to the OFT and their response was'some of the terms of Bill of Sale you signed appear not to be compliant with the Undertaking effective from 23 February 2006'
Does anybody know if this therefore makes the Bill of Sale unenforceable? The loan itself will still probably stand but can they retain my log book and have a declared financial interest in my vehicle? Any help would be greatly appreciated as I wish to sell my car to fund a new home but cannot do so whilst LBL have 'outstanding finance' on it.

Any help would be greatly appreciated.

[Guest]

Re: Log Book Loans - Bill of Sale

Your best course of action would be to pursue this with the OFT or via you local Trading Standards office.

The OFT obtain undertakings from traders that breach specified consumer protection legislation as a precursor to seeking court orders against them. This means that the undertakings may not have any force in law.

Having said that, undertakings are usually made in equivalent terms to those which would have been sought in the courts and any subsequent breach of these agreements may result in a full injunction being sought by the OFT and action is taken where the breach harms the collective interests of consumers.

[SillyFool]

Re: Log Book Loans - Bill of Sale

Thanks for your reply. I forwarded my Bill of Sale to the OFT and they stated that they will put this breach on file. They stated they could not get involved in individual cases etc etc.
Have you any idea about whether, from a legal point of view, this makes the Bill of Sale unenforceable? (i.e. can I demand its return). I aware that the actual loan itself will still stand but can they use my car as security when they have broken a previous 'legal' ruling?

[Guest]

Re: Log Book Loans - Bill of Sale

As I have explained, an undertaking from the OFT may not have any force in law and could be no more than a gentlemen’s agreement. That Log Book Loans have breached it is a matter for the OFT and only the OFT, not you, can take legal action.

What you might be able to do, is demand the bill of sale back from Log Book Loans under the pretext that it is unfair, based on the fact that they have breached their undertaking, as confirmed by the OFT. Regulation 8 of the UTCCR provides that "an unfair term in a contract concluded with a consumer by a seller or supplier shall not be binding on the consumer."

This is precisely the issue that the UTCCR is designed to prohibit.