Logbook loan
Encyclopedia
A logbook loan is a British term for a bill of sale
securing a loan on a debtor's vehicle (with the lender retaining the vehicle's "logbook", or vehicle registration certificate
). The structure of the loan means that the lender can repossess
the debtor's vehicle without a court order. This distinguishes it from a car title loan, as used in the United States.
Logbook Loans have gained notoriety in the United Kingdom due to their often very high interest rates and potentially unfair terms and conditions. Logbook loans are used for people that have bad credit that need cash quickly. Logbook loans can be completed in as little as 15 minutes. You must have a steady source of income and proof of income to be approved for a logbook or V5 loan. Most logbook lenders have websites that accept application like http://www.loans2gouk.co.uk and will call the prospect back.
In December 2009, the UK government announced a consultation on whether to outlaw logbook loans. This was denied.
Bill of sale
A bill of sale is a legal document made by a 'seller' to a purchaser, reporting that on a specific date, at a specific locality, and for a particular sum of money or other "value received", the seller sold to the purchaser a specific item of personal, or parcel of real, property of which he had...
securing a loan on a debtor's vehicle (with the lender retaining the vehicle's "logbook", or vehicle registration certificate
Vehicle registration certificate
A vehicle registration certificate is an official document providing proof of registration of a motor vehicle. It is used primarily by governments as a means of ensuring that all road vehicles are on the national vehicle register, but is also used as a form of law enforcement and to facilitate...
). The structure of the loan means that the lender can repossess
Repossession
Repossession is generally used to refer to a financial institution taking back an object that was either used as collateral or rented or leased in a transaction. Repossession is a "self-help" type of action in which the party having right of ownership of the property in question takes the property...
the debtor's vehicle without a court order. This distinguishes it from a car title loan, as used in the United States.
Logbook Loans have gained notoriety in the United Kingdom due to their often very high interest rates and potentially unfair terms and conditions. Logbook loans are used for people that have bad credit that need cash quickly. Logbook loans can be completed in as little as 15 minutes. You must have a steady source of income and proof of income to be approved for a logbook or V5 loan. Most logbook lenders have websites that accept application like http://www.loans2gouk.co.uk and will call the prospect back.
In December 2009, the UK government announced a consultation on whether to outlaw logbook loans. This was denied.