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Jun 27

Red flags to be wary of when looking for companies to provide you with a logbook loan

Posted by:AutoMoney

When people find that they are in a position whereby they need to borrow cash, they are often in such a rush to get the money they require, that they end up going for a bad lender. This is because they literally go for the first company they find. This is never a good approach to take. Therefore, when looking for a company to provide you with a logbook loan, you should make sure you are wary of the following red flags...

Early Repayment Fees – First and foremost, you will find a lot of companies charge their customers an early repayment fee. This means that, if you want to pay back some of your loan early, you will be charged for doing so. Why should you be punished for paying off your loan quicker than you are expected to? You should definitely stay away from companies with early repayment fees in place.

Communication Issues – Does the lender have an email and telephone number on their website? If not, stay away. If so, check them to make sure they both work, so you can be sure that the company is easy to get in contact with. You never want to go for a lender who is difficult to communicate with, as this is a massive red flag and issues are assured to arise.

Bad Reviews – Last but not least, if a company has a wealth of bad reviews, then you should definitely stay away from them. These bad reviews have not accumulated by coincidence. Individuals have clearly been unhappy with the service the lender provides. When reading feedback it is imperative to consider the opinions as a whole. You should never be blinded by merely one review, as even the best companies in the world get some negative feedback.

If you look out for the three red flags that have been mentioned, this should help you from falling into the trap of borrowing from a poor quality company. So, be sure the company does not have early repayment fees, that their reviews are largely positive, and that they are easy to get in touch with.

Summary – Are you considering taking out a logbook loan? If so, you have to choose your lender with an extreme amount of care. This post reveals some major warning signs you should be aware of.

Borrow with confidence

Borrow with confidence

We are PROUD MEMBERS of The Consumer Credit Trade Association. AutoMoney were forerunners in the creation of The CCTA Lending Code of Practice and we adhere strictly to its principles. Click here to view. ALWAYS MAKE SURE THE LENDER IS A MEMBER.

350.5%APR Representative
Representative example: Loan amount £1000. Duration 18 months. Repayable by 16 monthly repayments of £170.42 and one of £198.42 (includes Bill of Sale registration fee of £28) commencing two months from the date of the loan. Total amount repayable £2925.14. Rate of interest 187% per annum fixed. Representative 350.5%APR. LOANS ARE SECURED ON YOUR CAR. The vehicle may be repossessed if you do not keep up the repayments.