I have been wondering if someone has also come across with the same issue and if so then what they did for the coercive action. I am a sales person in a reputed company; due to my excessive use and late payments on my credit card; I got a bad credit history.
It was my bad luck that I had to face some issues with my health and had to be admitted in the hospital; the dues of the hospital were huge and since it needed money at urgent basis; I had to opt for the logbook loan from logloans.
I didn’t listen to the people about having any loan in first attempt and getting it approved as a result of simple agreement to the condition blindly. As far as I remember logloan.co.uk told me clearly that in case of nonpayment or late payment I will have to suffer with the car loss. Well, honestly I didn’t bother on that. I processed the loan and got the money in 2 working days and then started my treatment. After one month the payment was due so when the cheque got bounced back I received a call from the bank; stating that I don’t have money in the payment account. Now I was in big trouble. After five days of regular warnings, logloan.co.uk tow my car and I don’t have a vehicle now. I understand I am defaulter and it is my mistake, I never thought that some serious action will be taken, but I was wrong. But I had a question if there was any way out that I can take back my car. The answer was yes; if a logbook loan has been defaulted, the creditor can still take back the car. In case of delay in the payment, they wait for a minimum of five days after the account has defaulted. This is taken as a grace period and in case of failure and as per agreement logloan.co.uk take your car away. However this issue is not reported to the court; neither they approach the court for defaulter registration of the client.
Your car will be taken in any case if you make this negligence; the situation depends on you. If you again start paying the money you will have to pay some extra charges as a fine. However if the vehicle is taken, declaring a permanent defaulter problem it goes into auction process. If the sale price at auction is not enough to cover the whole debt, you’ll have to pay the “remaining amount” out of your own pocket. In other case, if the sale price of the vehicle is more than the total you owe, the difference must be paid back to you.
I hope this clarifies the problem and you still have time to take back your car. I had to pay additionally for the car, but my strong advice is; don’t miss any installment I any case; otherwise logbook loan which is a blessing, can push you into a trouble.