geared Posted September 30, 2012 Share Posted September 30, 2012 companies who provide log book loans are under no obligation to register the finance with hpi. Yep it's currently not law, so although most log book loan places agree to work to this code of practise other smaller ones don't. So the HPI check can still miss it (although they do offer insurance with their check to cover you if you come unstuck.) So you should still obtain a HPI check before buying a car. Link to comment Share on other sites More sharing options...
alchresearch Posted September 30, 2012 Share Posted September 30, 2012 Seen that but like stated on the program companies who provide log book loans are under no obligation to register the finance with hpi. (even though the linked advertising article suggests otherwise). Spot on. And you have to ask why would they bother? Judging by the APR they usually charge tells you what kind of company they are. 1) Registering with HPI costs them money would eat into their profit. 2) If anything happens like in the OPs example, they have the law on their side to recover the goods anyway. Link to comment Share on other sites More sharing options...
rotherlad Posted September 30, 2012 Share Posted September 30, 2012 Registering the financial interest is protection for the loan company and the cost is minimal compared to the cost of the loan. If this is not registered, which happens almost immediately the customer could move to the next lender and take another loan. If financial interest has not been added and another bill of sale is agreed and signed the chances of recovering the cost of the loan is halved as two companies would be trying to recover the cost of the loan from the same vechile. So as soon as the deal in done financial interest must be added on HPI to prevent this Link to comment Share on other sites More sharing options...
the_bloke Posted September 30, 2012 Share Posted September 30, 2012 Hi Im trying to get any info for my neice. Whilst she is away on holiday, bailiffs have been and removed her husbands car saying that there is an unpaid LOGBOOK LOAN on it. The car was only bought a few months ago, they have a receipt from the seller with proof of date and price of purchace. Does anyone know where she stands, and how to get the car back? I'm confused; how did the baliff know where the car was, if the loan and/or logbook wasn't registered against your nieces address? They don't just drive up and down streets looking for a car that matches their description. Link to comment Share on other sites More sharing options...
yorkiepudd Posted October 1, 2012 Share Posted October 1, 2012 I'm confused; how did the baliff know where the car was, if the loan and/or logbook wasn't registered against your nieces address? They don't just drive up and down streets looking for a car that matches their description. They get it from the DVLA, same as all these private parking companies that want to send you a bill. Link to comment Share on other sites More sharing options...
the_bloke Posted October 1, 2012 Share Posted October 1, 2012 They get it from the DVLA, same as all these private parking companies that want to send you a bill. Which would mean either the previous owner obtained a duplicate V5 after selling the car and put the name of the new owner on it to take out the log book loan - fraud presumably - or the current owner took the loan out. Somehow the log book loan people had the address of the new owner, it's the only way they could have tracked him down through the DVLA. Link to comment Share on other sites More sharing options...
truman Posted October 2, 2012 Share Posted October 2, 2012 Which would mean either the previous owner obtained a duplicate V5 after selling the car and put the name of the new owner on it to take out the log book loan - fraud presumably - or the current owner took the loan out. Somehow the log book loan people had the address of the new owner, it's the only way they could have tracked him down through the DVLA. Couldn't the original owner have obtained a "replacement" V5,taken a log book loan out and then used the replacement V5 to sell the vehicle to the new owner as usual? Link to comment Share on other sites More sharing options...
Chris_Sleeps Posted October 2, 2012 Share Posted October 2, 2012 One thing is for certain. If you own the car and a debt is secured on it that belongs to another person, the loan company have no power to take that car. They'd have to pursue the debt through court and possibly the person who sold the car would have a criminal case against him. Nobody can take your property to pay for someone else's debt. Link to comment Share on other sites More sharing options...
Kersplosh Posted October 2, 2012 Share Posted October 2, 2012 I had this happen to me last month when I bought a car off Here. I never thought to do an hpi check on it (YES log book loans do show up on hpi ) and it turns out that the girl that sold it me had Forgotten to pay the loan off. I put the car up for sale when I got my new one and the girl that ended up buying it did a hpi check on it and it rang alarm bells !!! It is not a criminal offence to sell a car with an outstanding log book loan on it, Its a civil offence and your only recourse is to take the seller to court and hope that they eventually pay you the money back that you paid for the car. If you have the log book the sellers name and address will be on it so you can contact them and ask them to pay the release fee to the loan company. This is the interest on the loan and once paid the car is released to the new owner and the loan company will then chase the seller to re pay the loan. I was lucky ! I contacted the seller and she got her partner to pay the release fee so I could legally sell the car as mine. The only advice that I can offer is "BUYER BEWARE !!!" Link to comment Share on other sites More sharing options...
Kersplosh Posted October 2, 2012 Share Posted October 2, 2012 One thing is for certain. If you own the car and a debt is secured on it that belongs to another person, the loan company have no power to take that car. They'd have to pursue the debt through court and possibly the person who sold the car would have a criminal case against him. Nobody can take your property to pay for someone else's debt. Fraid you are sadly wrong Chris Link to comment Share on other sites More sharing options...
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