The benefits of logbook loans notwithstanding, we can’t be blind to the fact that shady logbook loan lenders have indeed made many people lose faith in logbook loans. Initially, logbook loans were meant to be a solution to a problem, a means through which bad credit individuals got a shot at redemption. It was, in no uncertain terms, a loan product that led to a paradigm shift on how people viewed individuals with a poor credit rating. While the intention for introduction of logbook loans was noble and well meaning, shady logbook loan lenders hijacked the goodwill to make the whole process of acquiring a logbook loan a nightmare of sorts.
In recent years, there has been a wild cry among UK individuals who have been swindled in one way or another and sadly, ended up losing their cars not to mention finding themselves deeper into debt. Cases of harassment bordering on physical abuse, emotional torment, uncouth professional behaviour, and death threats in extreme cases are just but some of the unethical ways that shady logbook loan lenders use to intimidate their borrowers to meet their end part of the bargain.
Indeed, the narrations by borrowers of harrowing experiences under the hands of shady logbook loan lenders is testimony to the fact that to some extent, logbook loans have been used to exploit unsuspecting borrowers. You only need to do a simple search online to come face to face with harrowing recounts of how some borrowers have been unduly treated and victimised under a logbook loan. The murky world of logbook loans has been characterised by extreme interest rates, harassment calls and wanton car repossession without much of a prior notice.
As if that is not worse enough, unsuspecting car buyers have found themselves in the deeper end of the pool when logbook loan lenders repossess their cars even when it’s clear that they were unaware the car had a logbook loan attached to it at the time of buying. It is clear that laws governing logbook loans are as old as civilisation and therefore it is about time that there was a change in the same. The bill of sale agreement give logbook loan lenders powers to repossess a car without following any due process and this clause has been effectively abused by shady logbook loan lenders for selfish interests.
Individuals who have suffered under the hands of shady logbook loan lenders report either of the following cases:-
- Evasive lenders when it comes to explaining terms of the loan. Shady logbook loan lenders rarely divulge all information regarding the loan hence misleading borrowers to make uninformed decisions. In other words, the terms of the loan are vague and not clearly explained.
- Harsh treatment by lender on missing one or two payments
- High penalty charges and fees on default
- Extreme and harsh collection practices
- Car repossession without giving borrower sufficient time to get their finances in order
In light of the above, it’s crystal clear that shady logbook loan lenders are simply out to enslave borrowers and exploit them to the maximum. They are like vultures waiting to pounce any minute when a borrower faces some sort of financial constraints.
There is therefore the need for a relook into the laws that govern logbook loans. There need to be consumer protection especially those that buy cars unaware that they have a logbook loan attached to it. That notwithstanding, it’s imperative to do due diligence before engaging the services of a logbook loan lender or even buying a second hand car. After all, it is always important to be safe rather than sorry!