Logbook loan

[Gerradi]

My Niece gave a car in lieu of payment so my Daughter can take extra driving lessons with myself or her Mother, this was mid Sept 21, 5 weeks ago. My Niece bought it from trader last Sept 2020 with full mot & has receipt.
So yesterday letter arrived saying they see we own the car & there is outstanding loan against the car, they say we may not be the associated with the loan & to fill in form & send back. So I rang the debt people recorded message, rang loan company , spoke to chap who asked me to arrange collection & to Fill in form plus buy stamp , don't know why that irritated me so much...What I object to is the questions being asked , my employers name address phone etc, after I have cleared up that we were not the borrower, I asked what incentive is there to me to send form back if they are taking car, he said "We will decide what offer of money you should pay them to clear debt" (this persons loan,) to have car back...how is this legal, I realise it is but shocking it is...

[TheDrownedApe]

Gerradi said:

My Niece gave a car in lieu of payment so my Daughter can take extra driving lessons with myself or her Mother, this was mid Sept 21, 5 weeks ago. My Niece bought it from trader last Sept 2020 with full mot & has receipt.
So yesterday letter arrived saying they see we own the car & there is outstanding loan against the car, they say we may not be the associated with the loan & to fill in form & send back. So I rang the debt people recorded message, rang loan company , spoke to chap who asked me to arrange collection & to Fill in form plus buy stamp , don't know why that irritated me so much...What I object to is the questions being asked , my employers name address phone etc, after I have cleared up that we were not the borrower, I asked what incentive is there to me to send form back if they are taking car, he said "We will decide what offer of money you should pay them to clear debt" (this persons loan,) to have car back...how is this legal, I realise it is but shocking it is...

eh?

So your neice bought a car on HP then "sells" you the car to pay off a loan/debt she owed to you. Then at some point recently your neice hasn't made the monthly repayment and told the loan company they can F-off for the money and reposses the car or was this always the plan?

One assumes you knew it was on HP?

Is the car in positive equity? Re-reading it seems negative as you mention a debt - is this with them having the car back aswell?

Either way you need to play ball as they own the car...but idk who is liable for the outstanding debt (if there is one on top of them repossessing).

Edited by TheDrownedApe on Thursday 7th October 16:08

[NGee]

TheDrownedApe said:

eh?

Yep, that's as far as I got as well.

[kiethton]

Difficult as I'm not too sure if the process differs for logbook loans versus buying a car with outstanding HP

In my view possession is 9/10ths - I'd be securing the car away from your address, in a location they would not know and ideally blocked by other immovable objects, until such time the correspondence side is resolved.

Alternatively (and if you really want to have them over) strip the parts and leave a shell for them to take....

[PistonRings]

Que?

Your neice gave you a car she bought that had a loan against it? You now own the car and therefore are liable for the logbook loan? Interesting whatcar article - https://www.whatcar.com/advice/buying/what-happens...

Unfortunately this is why you should do a HPI check.

Edited by PistonRings on Thursday 7th October 16:15

[No ideas for a name]

Gerradi said:

My Niece gave a car in lieu of payment so my Daughter can take extra driving lessons with myself or her Mother, this was mid Sept 21, 5 weeks ago.
My Niece bought it from trader last Sept 2020 with full mot & has receipt.
So yesterday letter arrived saying they see we own the car & there is outstanding loan against the car,...

Eh (2)?

Who took out the 'log book loan', the previous owner, or your Niece?
If you have recieved a letter telling you that you own the car, tell them thanks very much - they have no claim.

If it was bought from a trader and paid in full by your niece, again, I don't *think^ they have a claim.

[Stoofa]

kiethton said:

Difficult as I'm not too sure if the process differs for logbook loans versus buying a car with outstanding HP

In my view possession is 9/10ths - I'd be securing the car away from your address, in a location they would not know and ideally blocked by other immovable objects, until such time the correspondence side is resolved.

Alternatively (and if you really want to have them over) strip the parts and leave a shell for them to take....

That really isn't how it works "Possession really isn't 9/10ths of the law" when you don't legally own something.
In the same way as you do not own any money that a bank accidentally puts in your account.
Your suggestion, which I was desperately looking for a "sarcasm" flag or something seems to be a good way to turn good open conversation into something far less.

[kiethton]

Stoofa said:

kiethton said:

Difficult as I'm not too sure if the process differs for logbook loans versus buying a car with outstanding HP

In my view possession is 9/10ths - I'd be securing the car away from your address, in a location they would not know and ideally blocked by other immovable objects, until such time the correspondence side is resolved.

Alternatively (and if you really want to have them over) strip the parts and leave a shell for them to take....

That really isn't how it works "Possession really isn't 9/10ths of the law" when you don't legally own something.
In the same way as you do not own any money that a bank accidentally puts in your account.
Your suggestion, which I was desperately looking for a "sarcasm" flag or something seems to be a good way to turn good open conversation into something far less.

It depends - we haven't had the full story from the OP but if you'd done the DD on purchase (a HPI check) and it showed clear and taken the car with no knowledge of the above I'd have no qualms in doing the initial action above - not allowing them access to it. It keeps the ball in your court - you've got the only piece of leverage that they'd otherwise have over you and you're not the person responsible for the debt. The logbook loan company would be a lot more willing to deal with you, more quickly, if they had no control of the car....

The latter part was definitely more tongue in cheek

[e-honda]

If you give them your employers details they can show up to your car park to repo it

[Ziplobb]

sounds like a family member has ripped you off. Surely best way to resolve it is talk to your niece ?

[DP14]

Ziplobb said:

sounds like a family member has ripped you off. Surely best way to resolve it is talk to your niece ?

Dysfunctional families blame everyone else and expect them to solve their issues.

[e-honda]

DP14 said:

Ziplobb said:

sounds like a family member has ripped you off. Surely best way to resolve it is talk to your niece ?

Dysfunctional families blame everyone else and expect them to solve their issues.

Why are you assuming it is the niece's loan?
i would have thought if it was then this thread would not exist

[Maxdecel]

Gerradi said:

............yesterday letter arrived saying they see we own the car & there is outstanding loan.....

Assume by the above they've traced you through DVLA as the new registered keeper ? So you've seen and completed the previous owners version of the V5c to transfer title?

[Northernboy]

OP, it reads as though you and your niece have tried to cheat the loan company out of their car with a ludicrous scheme.

If that’s not the case could you have another run at explaining what has happened?

[vaud]

OP

You need to be clearer in your description of the issue.

Bullet points help...

• ABC had car
• XYZ bought car

etc... give us a timeline and plain English and many on here can help.

[James P]

I thought that these Logbook Loan companies had fallen away as the loans aren’t actually secured against the car and anyone buying the car can just apply for and receive a log book in their name.

[Gerradi]

OK, Niece offered me the car as a free car...I looked after her house dog.

She bought car for herself from trader 9/20 cash have receipt.
Loan company contacted me yesterday after 5 weeks ownership, the loan was taken against the car in 2015 ...not by anyone in my family...

[AJL308]

Gerradi said:

OK, Niece offered me the car as a free car...I looked after her house dog.

She bought car for herself from trader 9/20 cash have receipt.
Loan company contacted me yesterday after 5 weeks ownership, the loan was taken against the car in 2015 ...not by anyone in my family...

So, you bought the car from her. It wasn't free, you got it as valuable consideration for services you rendered.

[Gerradi]

PistonRings said:

Que?

Your neice gave you a car she bought that had a loan against it? You now own the car and therefore are liable for the logbook loan? Interesting whatcar article - https://www.whatcar.com/advice/buying/what-happens...

Unfortunately this is why you should do a HPI check.

Edited by PistonRings on Thursday 7th October 16:15

You are absolutely right, but as far as I was concerned it was a free car for daughter to learn in I didn't pay it much thought, plus niece has owned the car for a year .
Still its taken 6yrs for this come to light according to the logbook loan company. I wondered if there was a time limit on these things, the car is barely worth a few hundred pounds now ...obviously someone took them for a bit more 6 yrs ago...

Edited by Gerradi on Friday 8th October 00:14

[Maxdecel]

Assuming the payments were satisfied up to 2020 and then cease, despite a change of ownership, it's taken them a year to finally locate the 2nd keeper since ?
These Bas are ruthless and the DVLA Love their business. As they say "There's a Duck in't hedge".