Log Book Loans

#debtline blog: 

Recently there has been a lot of press about payday loans, but there are other type of consumer credit that can be just as damaging if not more so. These are debts that are secured on a bill of sale. This is a type of high cost lending otherwise known as log book loans were the consumer offers an item of theirs as security for the loan. That item is often a car. 

A logbook loans gives the lenders considerable power as the ownership of the property passes to the lender so can be repossessed without a court order. This leaves consumers with little protection against harsh debt collection practices and lenders with no incentive to properly check that consumers can afford the loan.

Therefore if you don't pay as agreed the lender can repossess your car, for many this would create a huge amount of stress  as it could mean not being able to get to work or the children to school. Are you trying to pay back a loan and falling in to arrears; need advice on debts contact Twinpier