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simonshoot5
New Member
United Kingdom
52 Posts |
 Posted - 24 September 2010 : 21:48:06
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Hi all here is a question for you all if I make sence. My girlfriend has a car on finance that we are due to pay back at the end of the month I think it is £3827.27. We have tried to sell the car and with the sale of the car pay off the finance and have a little spare cash for a second hand car. There was a man interested in the car for his wife we thought great. Turned out my girlfriend took a logbook loan secured against the car when we were struggling to pay bills. She borrowed £1500 she pays £300 back a month total repayable 4k!!. Any how the chap who wanted the car did a HPI check and told us that there is a loan on the car off logbook loans This was not good. When My girlfriend signed the paperwork for this logbook loan she signed it to say she owned the car and was not on a IVA. (But she is). So we can't afford to pay off the car the finance company can't have it back because they will do a hpi check and see that there is a loan on the car even tho we don't own it the finance company does.
If she was to go BR would she get done for fraud. Plus what would this logbook loan company do will they just accept that she has gone BR anddelete her from there records. (they have the logbook and the spare key).
I hope some one can help
Thanks |
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simonshoot5
New Member
United Kingdom
52 Posts |
Posted - 25 September 2010 : 13:35:45
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| Any one that can help?? |
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RHB
Senior Member
1159 Posts |
Posted - 25 September 2010 : 15:16:12
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| If she commited fraud then there is always the possibility she could face criminal proceedings but from the little you have written I don't think it likely. If you both go BR then all unsecured debt is written off & the HP company will come & take the car |
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simonshoot5
New Member
United Kingdom
52 Posts |
Posted - 25 September 2010 : 15:48:05
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| Hi thanks for your reply. i went BR in july so im already BR. My girlfriend is on a IVA she is really worried about all this it is making us both ill. She has got it in her head that she will be done for fraud as she lied on a application. (But who has'nt when they are desperate i did) is it not the responsibility of the company to do the necessary checks. The contract with logbook loans states that if she was to go bankrupt that they have the right to reposess the car to get there money back but if the car is not owned by my girlfriend but by the finance company can they still reposess the car??? Would they take her to court and have her for fraud. |
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simonshoot5
New Member
United Kingdom
52 Posts |
Posted - 25 September 2010 : 18:49:29
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| Can someone please shed some light on this topic please. |
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Reviva UK
Advanced Member
United Kingdom
2452 Posts |
Posted - 26 September 2010 : 00:34:14
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Hi
If I understand correctly she took out a log book loan when the car was already on finance.
Technically when you take out a log book loan you are actually selling the car and buying it back only when you have paid the final amount.
If she is already in an IVA then she will be in trouble for the following reasons
1. she is bound by the IVA and should not take out further finance while in an IVA.to do so would cause the IVA to fail.
2. If she went br then the Official Receiver won;t look kindly on this.
3. Unusual that the log book loan company didn;t do an HPI check to confirm existing finance. So because they are in the motor trade they are expected to have done such checks and the first finance company would have the car returned to them and logbook loans would struggle to be paid, They could of course pursue her for fraud because of what she signed and therefore this debt would then fall outside of the br.
Lastly i suggest you check your finance agreement to see if the car is on an HP, lease or fixed sum loan agreement and report back.
Paul Johns
Bankruptcy Specialists
Reviva UK
www.revivauk.com
08454 751 851
Real People ..... Real Debt Solutions |
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Bigal4787
forum expert
United Kingdom
641 Posts |
Posted - 26 September 2010 : 01:23:37
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Simon,
as the previous post stated, by your girlfriend taking out the logbook loan, she technically sold the car to logbook loans whilst it was itself on finance, this would be seen as misconduct by the OR with a possible restriction being sought, however the effect of this can be lessened with mitigating circumstances.
Also as the car is on finance, there is a clause in the agreement, that in the event of bankruptcy the finance company has the option of repossessing the car, with any outstanding amount being claimed in bankruptcy( even after bankruptcy). In some cases if the car is worth more than the amount outstanding then, the OR can adopt the agreement, to realise the money for the vehicle for the benefit of the bankruptcy estate, however that doesn't happen very often.
The complication, is that the finance company and logbook loans will both lay claim to the vehicle, however logbook loans may lose out as either they did an HPI check and ignored the fact that there was finance on the vehicle already, or didn't do an HPI check. Once the vehicle is repossessed, the logbook loan should become unsecured and claimed in bankruptcy.
Hope this helps, but you should remember different OR offices deal with things differently, so I can only go by how the OR office I was at dealt with matters when I worked for them.
Big Al |
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simonshoot5
New Member
United Kingdom
52 Posts |
Posted - 26 September 2010 : 22:53:22
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| Thanks for the info guys. What do you think Realy the chances of logbook loans to take her to court |
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Bigal4787
forum expert
United Kingdom
641 Posts |
Posted - 30 September 2010 : 00:35:01
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Carl,
when you say take to court,I take it you mean logbook loans making a complaint to the Police for possible fraud.
It's very difficult to say what they will do, it is an option, but generally creditors push the OR for a restriction order or undertaking to be sought( i.e. for the restrictions in bankruptcy to be extended beyond 1 year) for misconduct. The opinion here is based on previous cases, what happens in your girlfriends could be completely different as each case is judged on its merits
Big Al |
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darrenhempson1279
Starting Member
United Kingdom
1 Posts |
Posted - 19 August 2011 : 16:02:10
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Hi I have had a similar problem:
My mum baught a car for me (Hire Purchase)on the 8th December 2009
In Jan 2011 I took a Logbook loan (Stupid i know) but the car needed a new flywheel and I had little choice as the HP compny would only harlf.
I have paid up to recently where I fell behind due to unemployment..
Yesterday the came to get the car while I was out they took the keys and drove off.
logbook want £1500 or the car will get auctiond.
If i confess to logbook will they prosecut me?
What happend to your Girlfriend?
Any help would be usefull
Thanks
P>S CCA and BoS are all in order! |
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Tricky Question/Advice logbook loans
