Do you feel that Logbook Loans UK are hassling you about an outstanding loan? Do you have loans and you feel you are unable to pay them back? Are they saying they plan to take you to court? Was the loan unaffordable and should never have been given to you in the first place? If these issues or other problems with Logbook Loans UK sound familiar, you may want to keep reading! You might be able to cancel your loan and even obtain a refund.
It’s not your fault. Complaints to the Financial Ombudsman have risen this year from 830 to 2,006, so it’s safe to say that you’re not alone.
Deal with your debt today and feel better tomorrow.
Who are Logbook Loans?
Logbook Loans offers short-term loans between £550 and £50,000 to customers in the UK. The company is also the largest direct logbook lender in the UK and offers customers the ability to have a same day pay out once the loan is approved. Logbook Loans has been in business for 15 years.
Why are companies lending to people who can’t afford it?
It can just be too easy to get money from lenders, no matter what your financial situation may be. The internet is brimming at the seams with companies who say they will give you access to funds within a few minutes, and who can approve a loan for you of as much as £1,500 in seconds. You may also find companies who plan to advance you money, without even undertaking any credit checks. Many companies don’t even mind if you have a “very bad credit” history or who may have difficulty repaying loans.
Read what to do if you can’t pay back your debt.
What causes debt problems and what the government is doing to curb this behaviour?
It is not particularly surprising that so many people face debt problems with these organisations, when you consider that they are often lending to those who are not in the best financial position. However, the situation is a lot better than it was several years ago. Prior to the new regulations being implemented, the loan business was becoming out of control, as were the debt people were facing. The loan market was once worth over £2 billion, and this was fuelled by irresponsible lending, together with high interest rates.
There were unfair practices which were identified by the Financial Conduct Authority, and in some cases, these led to huge fines being given to some of the biggest lending names out there. These included Wonga, who found themselves with a fine of £220 million, The Money Shop also received a large fine, as did Quickquid. When the FCA found that people had received a loan which they should never have been given, because of their “limited criteria” the customers also ended up with a refund. Thankfully, the harsh treatment worked. Throughout the next three years after the regulation, the number of loans being provided fell from 10 million to 1.8 million and lenders also dropped from 240 to 60.
Are you due a refund? Read through the next section in which we look at these new rules in some detail. If Logbook Loans UK is in breach YOU MAY BE DUE A REFUND EVEN IF YOU HAVE PAID OFF THE LOAN.
Government cap introduced on loan interest and other charges
There was a price cap which was introduced by the Financial Conduct Authority, and this was designed to protect borrowers from excessive charges. These caps include:
- A cost cap of 0.8% per day on the amount of money you have borrowed – this is an accumulation of both interest and all fees charged.
- A cap on default fees of £15 – interest can be charged after a default, but it should not be more than the original rate of 0.8% per day.
- A complete cost cap of 100% – you should not be asked to pay more than 100% of the total money you have borrowed.
The caps are relevant to all credit agreements with an interest rate of 100% or more per year and that should either be fully or substantially repaid within a year.
There are also other regulations which were brought into force in May 2017. According to these, lenders must offer details of all their products on a price comparison website which has authorised by the FCA. In addition, borrowers should always be given a summary of the cost of borrowing.
If Logbook Loans UK have failed to adhere to the regulations and they are trying to charge you more than they are permitted to, your credit agreement with them welcome become unenforceable and they will not be able to force you to repay the loan.
Find your best debt solution (in 1 minute!)
Is all this information starting to feel overwhelming? Don’t panic! I’ve put together a 4 question debt calculator so you can quickly and easily find the best solution for you. If you’re eligible for the new government scheme, you could write off up to 85% of your debt! Answer the four questions now.
Unfortunately, there are loan companies out there who are doing business when they do not have any legal right to do so. According to the law, only authorised businesses are allowed to make certain credit agreements. If they are not an authorised company, they will not be able to enforce repayments. This means that if you just stop paying them, they will not be able to do anything about it.
If you wish to find out whether Logbook Loans UK is authorised, you can simply enter the name of the company on this Interim Permission Consumer Credit Register search page. Another option is to search the name via the financial services register. If there is no valid up to date entry on at least one of these registers, you may just stop paying them. They will not be able to enforce the debt.
Other sign that all may not be as they seem with Logbook Loans UK include a lack of detail on the company website, out of date information or information which is different on the two directories, and non-disclosure of true APR.
Can you make a complaint about Logbook Loans UK?
If you feel that Logbook Loans UK are in breach of the regulations and they seem to be treated you unfairly, you will be able to right to make a formal complaint. If they fail to deal with your complaint or they do not deal with it within eight weeks, you have the right to escalate it to the Financial Ombudsman.
It is simple to make a complaint. You should get all the information you need related to the complaint, including evidence of phone calls etc. Write to Logbook Loans UK heading your letter with the word Complaint. The more detail you can provide, the better. It is a good idea to also advise them on how you want them to deal with your complaint. For example, whether you are looking for compensation.
If Logbook Loans UK do not provide you with a conclusion you are happy with, you have the right complaint to take it to the financial ombudsman. You can reach the Financial Ombudsman by phone on 0800 023 4567 or 0300 123 9123
If Logbook Loans UK has failed to treat you fairly, you could be entitled to receive a refund, even if the loan has been completely paid off within the last six years. In this case, you may expect to receive a refund on all the interest you have paid, together with any additional charges. In addition, you could receive 8% interest on these payments.
If the loan has been unaffordable to you, you have the right to insist that it gets removed from your credit record and the outstanding balance should also be cancelled.
In the first instance, you can write to your lender stating your case and making your request for compensation.
If there is no satisfactory response within 8 weeks, you can follow it up with the Financial Ombudsman by phone on 0800 023 4567 or 0300 123 9123.
In most cases, loan companies expect you to repay your debt using a Continuous Payment Authority (CPA). With a CPA, the loan company will have permission to debit any amount they wish from your bank account, whenever they want. They should, of course, inform you before they take the money from your bank account, but many of them miss out this crucial step. This means that the money leaves your account, when you least expect it.
If you are already in a bad financial situation, struggling to make important payments such as your rent, or other bills, and the money is unexpectedly taken by Logbook Loans UK ahead of these bills, you may find yourself facing serious trouble, which could include even losing your home in the most extreme cases.
Thankfully, there are new regulations which mean that if the CPA fails on two occasions, the lending company cannot make any other attempts to take the money from your account.
With the CPA, there are also new rules regarding the amount which can be taken. Lenders are not allowed to take partial payments from your account. If there is not enough money in your account to cover the full amount of the loan payment which is due, they are not permitted to take anything. You can agree that they can take a partial payment if you desire, but unless you give them explicit permission, they cannot do this.
If two requests are made from the lender, or they take a partial payment without permission to do so, they would be in breach of regulations. You can report them to the financial ombudsman on 0800 023 4567 or 0300 123 9123.
What if you can’t afford to repay the loan?
If Logbook Loans UK are legitimate in their behaviour, but you are unable to pay back the loan, you can take some steps to protect yourself.
If you are paying Logbook Loans UK via a CPA, standing order or you have a direct debit set up, you can contact your bank and get these cancelled. If you do this, Logbook Loans UK will not be able to collect payments automatically from your account, and you will be able to take back control of your bank account. Most banks will advise you to speak to Logbook Loans UK and inform them off your plans to stop the payments, and although this is a good thing to do, you don’t have any legal obligation to let me know. If you decide to cancel, they won’t be able to take any further payments, unless you specifically direct them to do so.
Regardless of whether you cancel the payments, you will still owe the money and you should take steps to deal with that directly. It may be tempting to ignore the problem, but it won’t just go away. You should speak to Logbook Loans UK and discuss your financial issues with them, and what steps you wish to take next. They are legally obligated act fairly and come to a reasonable arrangement with you. If you need to reschedule the payments at times which are better suited to you, you should speak to the lender and advise them of a payment plan that suits you best. For instance, weekly instead of monthly payments.
The law states that lenders must:
- Provide you with information on where to get free independent debt advice
- Give borrowers a bit of breathing space, and hold off on debt recovery for a period of time to give the borrower time to pay it back.
- Freeze interest and additional charges if applicable,
Is it wise to roll over your loan?
It is highly likely that Logbook Loans UK will advise you to roll over the loan, but this is advantageous only to them. The reason that loan companies say that you should roll the loan over is that you will be end up being charged more interest and additional charges, which will inevitably plunge you even deeper into debt. You should know that you can’t roll the loan over more than twice.
Getting debt help
There are several organisations that provide free independent advice on debt:
Are loan companies not to be trusted?
We are all well aware that loan companies are widely criticised. However, there are two sides to the coin, as it could be said that many of these companies also offer a valuable service, by offering a credit line to people who may struggle to obtain credit from the regular sources, such as banks or credit card companies. Unfortunately though, some of these companies decide to put their profits ahead of everything else and end up exploiting their customers and this can do real harm. Of course, sharks remain, but the new regulations are making it much safer to use these companies. Despite this though, debt problems still arise.
If Logbook Loans UK are breaching the regulations, you may not need to pay them as the debt would become unenforceable. If you are not able to afford to pay the loan, you should contact one of the organisations we have listed above, as they will offer the help and guidance you require.
If you can’t pay back your loan do check out my other article here.