Log book loans and ownership

[Mjolinor]

It seems there is a lot of brown sticky stuff beginning to emerge on the subject of log book loans. It seems that if you buy a car with a loan outstanding on it then the loan company can legally repossess the car. How can this be?

I used to be in the motor trade 30 years ago and always if the car was bought in good faith and you could prove that, then you were not responsible for outstanding HP unless you were a trader. I know this for a fact as I have been on both sides of that, buying as a private individual and not having to pay the HP company and almost buying as a trader but backed off because of intuition that later turned out to be good.

Has the registration document changed? As far as I am aware the "log book" shows the registered keeper, this is not necessarily the owner. Having the owner on their if he is not the registered keeper would be illegal. How can the registered keeper legally borrow money on a car?

There are all kinds of hit on Google about how the new owner is responsible for the debt but to me I cannot understand how unless there have been some sneaky changes in the law to specifically make it so that log book loan companies can stitch people up. I wouldn't put it past any government to do that but I am surprised they got away with it.

[Meat-Head]

Yeah good point. Thread had a thread, not syre who it was but kept chanhing names and addressess and swapped the plates

OFC TOOIC

NVO sre private car park company but there in partnershoip with the gov which is wrong

ON TOOIC

If giv and logbookloans became partners and modern technology, buying a new car, type in reg in dvla could come up loan if ?xx

pisted from my hated ushit

[Canker_Canison]

I think that's what HPI checks are for.

[GastonJ]

It is, Solera Holdings are the company that own HPI, a limited company, and must make a fair bit of cash. Unsure why DVLA never offered such a service, perhaps they'd have made a profit - which all governments appear not to want public sector Organisations to make. Sooner sell off the idea for a private company to make the cash *shrug* Anyway, as MJ says the logbook information is ignored so it's buyer beware and the onus is on the buyer of a motor vehicle to go stump up however much HPI want to do a check on the car and if you don't use HPI then you'll lose. Doesn't that make HPI a monopoly?

Wonder who would win if you managed to get 2 log book loans on a car then sold it on. We all know who the losers would be tho.

[GastonJ]

Sorry, just back to MJ's point really - just because you are the registered keeper doesn't mean you are the owner as per the V5. As such you should not be able to take a so called logbook loan out on the car unless you can prove you actually own the car, not just keeping it. So just because the loan company doesn't bother to check up who the actual legal owner is (and so lends money to the registered keeper on the strength of a flimsy piece of paper that just states the registered keeper isn't the owner) dosn't mean the legal owner owes the money, since they never too out the loan. It's the keeper who needs prosecution, or persecuting, for misrepresenting themselves as the owner surely? and the loan company for being a bunch of sharks more interested in making money than they are in finding out whether the keeper is the owner? *shrug* I generally buy my cars and bikes from a dealer and demand interest free credit, so have a record somewhere that I am the owner :)