Payday loans cap

[Retired_Member38]

A logbook loan generally won't show up on an HPI register. Which is the whole problem.

You don't need to buy a car without a log book to get caught out... look at this scenario

• you take out a £200 loan against your £500 Ford Focus
• You get a replacement log book from the DVLA
• You put the car in the newspaper, I give you £400 cash for it after getting a clear HPI check.
• Loan is defaulted, baillifs arrive at my door and take the car.

 

[bonusmedia]

Nope. They do show up on HPI checks.

I've just double checked this and apparently it is in the code of practice for the industry but not compulsory, so it is possible for it to go unreported but it's rare. However, even then, if they get a HPI check they will normally be covered by the check provider's insurance against any unreported credit anyway.

Your scenario is possible, but very rare.

Anyway - it's a dodgy industry and will get squished sooner or later, same as payday

EDIT: the HPI guarantee covers £30k of losses if there is an unreported bill of sale

 

[Retired_Member38]

I'm not going to argue with you here; but you're wrong. I've researched the niche in the past via my lending contacts and I am 100% certain that a huge percentage of logbook loans aren't recorded.

An HPI check won't necessarily get you out of it either. Look at the T&C's of the guarantees...

 

[bonusmedia]

I'm not going to argue with you here; but you're wrong. I've researched the niche in the past via my lending contacts and I am 100% certain that a huge percentage of logbook loans aren't recorded.

An HPI check won't necessarily get you out of it either. Look at the T&C's of the guarantees...

You are arguing with me here. You may be right, but not according to any source I can find. Maybe your contacts are referring to the less scrupulous (read:sharks) end of the market that doesn't comply with the code.

Checked the HPI guarantee and it seems reasonable to me, the only thing that might catch some people is that they expect you to check the VIN, but again that's pretty much common sense.

Either way - we can agree logbook loans are dodgy and need greater regulation. The FCA are on the case, hopefully they will do something about it soon enough.

 

[Retired_Member38]

Example term - one of them says if you pay 30% under normal value, you're not going to be covered.

I wouldn't expect to be able to buy a £100,000 Ferrari for £70,000 without something being wrong. But I would expect to be able to buy a £1,000 Clio for £700 because the guy owning it had lost his job or any other variety of 'short term' needs.

There isn't anything inherently dodgy about buying a Clio for £300 less than its worth. Yet doing so is going to invalidate your claim if it turns out the guy not only sold it cheap, but secured some finance on it first.

 

[bonusmedia]

Perhaps you should start some sort of campaign to stop the exploitative HPI check industry

/s

 

[Retired_Member38]

Why would I care ?

I'm just discussing reasons that I'm not going to personally get involved in it... I don't give a shit about spending my own time or money to actually do something about it :lol:

 

[bonusmedia]

Sarcasm, old bean. It amuses me when you assert your moral superiority

 

[Retired_Member38]

Sorry, I thought you said complain about logbook loans, not HPI checks.

re the morality of it there is a pretty clear difference between logbook loans and payday loans. Payday loan users are bringing the repercussions on their own heads. Logbook loan users are bringing them on someone else. One is perfectly acceptable to me, the other not

 

[bonusmedia]

Weeelll - I think we can assume most logbook loan users do not go on to commit fraud by selling the car.

Anyway, good to have boundaries I disagree with your position but I appreciate it is sincerely held.

I suspect we both have a cognitive bias towards arguments that support our businesses...