Help required re log book loan

[lfc3110]

My nieve 21 year old daughter took out a log book loan a few months ago of £1500 and basically defaulted on it. They have now demanded £4500 immediately or they will arrange to take her car. Is this right? she is unabke to get into gheir offices to see them due to working but refuse to negotiate with her over the phone. she doesn't live with me anymore but hasnt got round to changing her addresa so I am still getting all her letters over this. they now know she doesn't live at my address cos I returned her post to them. she doesn't want to ring them in case they find out where she lives and takes her car. What is the best way forward?

[stevemLS]

Re: Help required re log book loan

I don't know the answer but this illustrates why this type of loan is just as bad as payday loans.

Essentially, though, as I understand it, the loan is secured on the car by way of a deed of Bill of Exchange, which gives them the right to seize it without necessarily going to court as you would normally have to do.

She needs to take some time off and get to their office, pretty sharpish, ideally taking you or someone else for support.

She is entitled to a breakdown of how £1.5 has escalated to £4.5k - that is horrendous.

[lfc3110]

Re: Help required re log book loan

I don't know the answer but this illustrates why this type of loan is just as bad as payday loans.

Essentially, though, as I understand it, the loan is secured on the car by way of a deed of Bill of Exchange, which gives them the right to seize it without necessarily going to court as you would normally have to do.

She needs to take some time off and get to their office, pretty sharpish, ideally taking you or someone else for support.

She is entitled to a breakdown of how £1.5 has escalated to £4.5k - that is horrendous.

I know- apparently she has been to see them and they will not budge- she renegotiated the loan once but was then very poorly with a kidney infection and off work for 3 weeks so then broke the agreement again and now they wont help her. they obviously cant take the car as they dont know where she lives but she really wants this sorting but not at the expense of an additional £3K . How is she best dealing with this now?

[stevemLS]

Re: Help required re log book loan

So have they provided a breakdown of how the additional £3k has arisen?

Surely they know where she lives - isn't the car registered at her address? (If not, it should be, it is an offence for it not to be - so that could be further trouble?)

She could give you a letter authorising you to discuss it with them and you could go to them, if you feel up to it.