LOGBOOK LOANS - secured loans against logbooks

A car logbook loan is a loan secured on your vehicle, including vans and motorbikes, via a Bill of Sale. These loans allow you to keep using your car during the loan term. Your car should remain taxed, MOTd and insured as normal. Loans are typically from £50 to £50,000. By securing loans against cars the lender's risk is substantially reduced, removing the need for credit checks. Bad credit histories are accepted.

The average maximum you can borrow will vary from 50% to 70% of your car's trade value. This is to allow the lender to recoup his costs should he have to repossess your car. Repayments are made on a weekly basis with some loan terms as long as 104 weeks. Loan terms cannot be extended much further than this as lenders have to allow for the depreciation of your vehicle.

logbook loans

Valid CSS!



Instantly apply for fast logbook loans online. A logbook loan calculator is often available to give you a quote. Due to the nature of the loan, you will have to deal with local lenders as the loan documents cannot be fully completed online. Your vehicle will have to be inspected and valued and a Bill of Sale signed. Lenders are particularly active in London, Manchester, Liverpool, Leicester, Hull, Sheffield, Norwich, Leeds, Ramsden Scotland and Belfast (Northern Ireland) NI. Compare logbook loans based on APRs and logbook loan reviews to get easy logbook loans at the best rates. The complaints section will give you an insight into some common poblems.

You must satisfy the following criteria

  • Vehicle less than 10 years old
  • Proof of regular income such as bank statements or payslips
  • Vehicle clear or almost clear of finance
  • V5 or logbook in your name
  • UK resident over 18 years of age
  • Proof of I.D. with curent photo

Logbook money loans generally tend to be from £50 to £2,000. APRs are usually around the 400% mark, but can range from 178% to much more. Aim for the lowest APR for cheap logbook loans. Try visiting logbook loan forums, e.g. consumeractiongroup.co.uk, to get a feel of other consumer's experiences.

Once an appointment has been made with a logbook loan company your loan can be completed fairly quickly, sometimes within an hour. You will be visited by an agent who will then inspect your vehicle and complete the necessary paperwork. The logbook remains with the lender during the term of the loan, but this is not the document that actually transfers ownership of the vehicle. You can always get a replacement V5C (logbook or vehicle registration certificate) by completing a V62 or by phone from www.gov.uk, although this will cost you £25. The key to the lending process is the Bill of Sale. This is the document that transfers temporary ownership of your vehicle to the lender. This is legally binding. No questions.



Vehicle logbook lending has attracted a lot of criticism from several consumer groups. This is mainly due to the nature of Bills of Sale. Generally these car loans are regarded as an expensive form of credit, especially given that they are secured on an asset.


Bills of sale are very arcane and technically complex instruments. The language used is outdated and unclear. Consumers may not realise the onerous terms being entered into. Bills of Sale essentially transfer ownership of the asset to the lender during the duration of the loan.


Once a Bill of Sale is registered properly, the lender can seize your vehicle without having to obtan a court order. There is 100% no legal action you can take to stop this. This is one of the key aspects that attracts significant criticism.


If you fall behind in payments and your vehicle is eventually repossessed to settle your debt, you could still owe the lender money if the value of your car falls short of the outstanding debt.


Unfair practices led to a government consultation following a proposal to ban all Bill of Sale lending in the UK. There's even been a case where one of the biggest players in the industry was effectively shut down when they had their Consumer Credit License revoked. Logbook loans ltd went into administration and were then bought by aother firm and still operate under the same name.

Third party buyers have little recourse if a lender recovers a security, typically a second hand car to which a Bill of Sale is attached in respect of a loan made by a previous owner.


Custom Search

A Bill of Sale is a document which transfer a right to personal goods as security for a loan, but possession does not pass to the lender. This document will be void unless in the form set out in the Schedule to the Bills of Sale Act (1878) Amendment Act 1882 (see s.9) (although this form may be adapted for the sake of clarity).

The Schedule to the Bill of Sale: s.4 of the 1882 Act requires that all the items on which the debt is secured be set out in a Schedule at the end of the Bill of Sale, and these must be specifically described. It is void against any goods of which the debtor was not the true owner at the time of execution (s.5).

Essential Contents of a Bill of Sale

  1. Date of the bill
  2. Names and addresses of the Parties
  3. Statement of the true consideration given
  4. Acknowledgement of receipt of the advance
  5. An assignment by way of security of personal chattels capable of specific description
  6. That it is a monetary obligation (rather than any other) that is secured
  7. Statement of the sum secured, the rate of interest and the repayment instalments
  8. agreed terms for the maintenance and defeasance of the security (ie that upon payment of the principal sum plus interest, the bill shall be void)
  9. a clause limiting the grounds of seizure to those set out in s.7 (these are usually set out in full)
  10. Execution by the debtor
  11. Attestation by a credible witness who is not a party to the bill
  12. A schedule describing the secured chattels (this description must not appear within the body of the bill)

Registration Requirements

Section 8 of the 1882 Act requires that The duly attested bill of sale must be registered within 7 days of its execution. The correct process is to file the bill with the Filing Department, Royal Courts of Jutice, Strand. The lender's copy of the bill will then have a Supreme Court Stamp, and the bill will be entered on the Register at the RCJ.



In 2011 the UK Government published its response to the 2009 consultation triggered by concerns following the coplexity and onerous features of logbook loans. Going forward, the government considered four options. These are as follows:

  1. Do nothing

    One option was to leave things as they are. This was very unpopular with consumer groups and was never really a contender. Something had to change.

  2. Voluntary Code of Conduct

    This option encompasses the introduction of a voluntary code within the industry and other non-statutory requirements. The option proved popular with lenders but unpopular with consumer action groups as well as other experts.

  3. Reform

    A reform of the Bill of Sale legislation was considered in order to make it more appropriate for consumer lending. Over a third of consumer groups who responded cited this option as their preferred choice. Over half of lenders who responded stated that this option in conjunction with option two was their preferred choice.

  4. Ban Bill of Sale Lending

    Over half of consumer groups, enforcers and experts stated that banning bill of sale lending was their preferred option. Unsuprisingly, this was very unpopular with lenders.

Following considerations of all responses, the governemnt decided not to regulate the industry at the time, selecting opton 2. Instead the industry was given a chance to put its own house in order.




"A Commitment to Responsible Lending"

    1. The Association represents finance houses, retailers, building societies, credit-brokers, professional firms, debt collection companies and others acting in providing credit, hire and leasing facilities and ancillary services to consumers and businesses.
    2. This Code is specific to those members who engage in the use of Bills of Sale for Lending regulated under the Consumer Credit Act 1974.
    3. The purpose of this Code is to ensure compliance by members with the minimum standards set by the Association, as specified in this Code.
    4. The Association and its members shall publicise the existence of this Code and where appropriate provide details of the Complaints Procedure.
    1. The Association, through its Council, shall monitor the compliance of members with this Code and will require members to submit to Annual Compliance Audits (ACA's) as a condition of membership of the Association. The Association or any other authorised person(s) will conduct the ACA's at the member's business premises.
    2. Members shall promptly notify the Chief Executive or other officer of the Association of any conduct that comes to their attention of any member or any other person engaging in Bills of Sale for Consumer Lending, which is not consistent with this code and which might adversely affect the reputation of the consumer credit industry or of the Association.
    3. The Association will record all incidences of reported misconduct, including misconduct identified through Annual Compliance Audits, and will make those records available to the Office of Fair Trading (OFT).
    4. The Association, through its Council, may take action against any member found to be in breach of this Code. Such action may include unscheduled compliance audits, written warnings to the member, requests for written explanations and meetings to discuss the matter.
    5. The ultimate sanction, which the Association may impose, is the suspension or expulsion of a member from the Association. The Association will also promptly notify the OFT of any members who they suspend or expel and the reasons why.

    Members shall:

    1. Conduct their business lawfully; comply with all relevant legislation, regulatory guidance, judicial decisions and general rulings of regulatory authorities.
    2. Trade honestly, responsibly, ethically and treat customers fairly.
    3. Behave at all times with integrity and endeavour to ensure, where applicable, that credit-brokers and all other persons with whom the member has commercial relationships do likewise.
    4. Act responsibly and with care in the day-to-day conduct of their business.
    5. Not misrepresent facts to a customer concerning any aspect of a credit transaction. Members shall also take all reasonable steps to ensure, where applicable, that brokers and any other intermediaries, when acting, as agents of the member, do not misrepresent facts regarding such transactions to a customer.
    6. Respect confidential information supplied to them in the course of their business.
    7. Ensure that credit documentation embodies, in plain and intelligible language, all the express terms and conditions of the agreement, which affect the customer's rights and obligations.
    8. Provide adequate training for members of their staff, agents, associates and any other person who performs any duties on behalf of the member, bringing this Code and the principles contained in it to their attention and requiring them to carry out their duties in accordance with it.
    9. Comply with obligations and any conditions which may be imposed by the OFT with regard to their respective licences under the Consumer Credit Act 1974 (the Act).
    10. Follow, where applicable, any requests conveyed by the Association and emanating from the Bank of England, the OFT, the Financial Services Authority (the FSA) (or other relevant authority), and the enforcement authorities.
    11. Follow, where applicable, any guidance notes issued by the Association, which refer to this Code.
    12. Ensure fairness in all dealings with customers including, but not limited to, their dealings with customers both before and after the making of the agreement or any related agreement and the manner in which those agreements are enforced.
    13. Ensure that the member's interest in the assigned vehicle is registered, within 24 hours of the making of the agreement, with a recognised Asset Finance Register such as HPI Ltd.
    14. Members shall not use Bills of Sale, as a security instrument, to finance the purchase of any goods sold to the customer by the member, or by any third party suppliers.
    1. Advertising and Marketing
      1. Members shall not use direct mail indiscriminately, shall act responsibly and prudently in their advertising and marketing and ensure that all their advertising is truthful and not misleading.
      2. Members shall ensure that all advertising and promotional literature is fair and reasonable, does not contain misleading information and complies with all relevant legislation, in particular the provisions of the Consumer Credit Act 1974 (the Act) and the Regulations made under it. This includes the inclusion and disclosure of the 'APR' in the statutory form, where required by domestic and community law.
      3. Members shall ensure that all advertising complies with the British Code of Advertising, Sales Promotion and Direct Marketing, the Radio Advertising Standards Code, the Television Advertising Standards Code, OFCOM and other relevant codes of practice of similar standing.
      4. Members shall not engage in high-pressure selling or other aggressive sales practices such as pressurising a customer to sign up to a credit agreement without affording him the opportunity to consider the Pre-contract information, ask questions about the agreement and ask for and obtain further information and explanation.
      5. All advertising carried out by members shall carry and prominently display the CCTA logo or reference to being CCTA members. This will help customers identify that loans provided by the individual member are transacted to a high standard. All members will also prominently display this Code of Practice on their websites and will make available hard copies to send on request to interested customers.
      6. In this code and in particular clause 4.1 above, "advertising" includes every form of advertising including Internet Websites. The Consumer Credit Act 1974, s 189(1) makes it clear that any form of publicity is an advertisement for the purposes of the Act. "Advertisement" includes every form of advertising, whether in a publication, by television or radio, by display of notices, signs, labels, show-cards or goods, by distribution of samples, circulars, catalogues, price lists or other material, by exhibition of pictures, models or films, or in any other way, and references to the publishing of advertisements shall be construed accordingly.
    2. Responsible Lending
      1. Members shall not engage in any behaviour that the OFT considers may constitute 'irresponsible lending'. Members must have regard to: 'Irresponsible Lending-OFT guidance for creditors'- August 2010 and as amended from time to time.
      2. Where members make available agreements comprising a balloon payment option, representing the full loan amount (also known as the principal), members agree to make that option available only where their customer is proposing to enter into the agreement which is wholly or predominantly for their business purposes (a business carried on or intended to carry on). Where that is the case, members agree:

        (a) to offer both balloon and capital repayment options to the customer and to provide adequate explanations of the key features and risks of each of the agreement options in order to place the customer in a position enabling him to assess which agreement (if any) is adapted to his needs and his financial situation. Freedom shall be given to the customer to select the payment option that is best suited to his needs and financial situation;

        (b) to carry out reasonable specific assessments of affordability in order to establish from the customer that sufficient funds will be available by him to repay the loan in a sustainable manner and in full at the end of the contractual term;

        (c) that where credit is granted to customer on the basis of a balloon payment option, the term of the agreement shall not exceed 12 months. In addition, any subsequent agreement entered into with such customers, as a result of their inability to pay the final balloon payment on the earlier agreement, will be repayable by periodical capital and interest repayments of an amount not greater than the amount of the periodical interest only payments in the earlier agreement.

    3. Explanations of the credit product
      1. Before the customer is bound by any credit agreement or offer, members shall provide the customer with Pre-contractual information (PCI) by means of the form required by law at that time. Members shall explain to the customer that they may take away the PCI to consider the terms of the offer of credit before the making of the agreement and the customer should be afforded such an opportunity.
      2. Members shall provide adequate explanations to the customer, in order to place the customer in a position enabling him to assess whether the proposed credit agreement is adapted to his needs and to his financial situation by explaining, but not limited to:

        (a) the Pre-contractual information to be provided;

        (b) the risk, on default of the agreement, that additional interest and default fees may be charged;

        (c) the risk of losing the asset (usually a vehicle) on which the credit is secured, how it would be repossessed, and the loss this could entail;

        (d) that repossession under the Bill of Sale can take place without a court order and that members may enter customer's premises to take possession of the vehicle;

        (e) that repossession can result in significantly higher additional costs and may not clear all of the debt owed ; and

        (f) that there is a provision for voluntary termination and the terms and conditions which apply.

      3. Where a member has clear grounds to suspect that the explanation provided has not placed the customer in a position whereby he is enabled to assess whether the agreement is suited to his needs and his financial situation, members shall provide further explanation to the customer.
      4. In all circumstances members should provide the customer with an opportunity to ask questions about the credit agreement. Members should also advise the customer how to ask for further information and explanation about the credit agreement from him.
    4. Assessment of affordability
      1. Members shall, before granting credit or increasing the amount of credit to be provided to the customer, undertake an assessment of the creditworthiness of the customer to assess the borrower's ability to undertake any proposed credit commitment, or specific additional credit commitment, in a sustainable manner, without the customer incurring (further) financial difficulties and/or experiencing adverse consequences.
      2. The assessment of affordability should be based on information and evidence obtained from:

        (a) the customer, having provided evidence of his ability to repay the credit; and

        (b) a credit reference agency, where necessary.

      3. Members shall take particular care in relation to applications for credit from young people in the age range 18-21 years.
      4. Members shall continuously monitor their credit granting practices and their assessment techniques to ensure that they are prudent and realistic in the prevailing economic circumstances. They shall not be less rigorous in assessing the customer's ability to repay by reason of the sole fact that security is offered.
      5. To the extent that they use credit-scoring techniques, members shall abide by the principles set out in the publication "Guide to Credit Scoring 2000", as subsequently amended or updated. Where members do not use credit-scoring techniques they should be prepared to make clear to a declined applicant whether or not a refusal relates to a credit reference agency report.
      6. Members shall ensure that where a customer is refused credit and believes the refusal to be unreasonable the customer is given the name or title of a senior official who will review the application.
      7. Members shall provide appropriate assistance, in the form of information and guidance, to young (as defined in 4.4.3) and/or vulnerable customers.
    5. The Regulated Consumer Credit Agreement
      1. Members shall use plain and intelligible language in all agreements, Pre-contract information documents and communications with customers. Members shall use prescribed wording where that is required by law.
      2. Members shall ensure that their agreements (and any related agreements) with consumers do not contain unfair contract terms.
      3. Members shall advise customers of the contractual interest rate(s) applicable to their agreements for credit, the basis on which default interest and charges, repossession charges and any other charges are calculated and, when they will be charged.
      4. Members shall advise customers how any agreed variation of the terms and conditions of their agreement will be notified and shall give customers at least 14 clear days written notice before any variation takes effect.
      5. Members shall comply with all statutory and other reasonable requests by customers for information about their agreements and accounts within 14 days of receiving a written request or otherwise within the period specified by law.
      6. Members shall supply copies of documentation and statements of account as required by law and within the prescribed timescale.
      7. Members, where applicable, shall comply with their legal obligations in relation to the provision of Pre- contractual information and the 14 day right of cancellation in respect of distance contracts under the Financial Services (Distance Marketing) Regulations 2004.
      8. Members shall assist customers seeking advice and guidance.
      1. Guarantees
        1. Members shall advise individuals proposing to give a guarantee or other security for a customer's liability that

          (a) by giving the guarantee or security he or she might become liable for payment of the loan amount instead of or in addition to customer;

          (b) he or she should seek independent legal advice before entering into the guarantee or security.

        2. Members shall be deemed to have complied with the requirements of where guarantees and other securities contain a clear and prominent notice to the above effect.
      2. Bills of Sale
        1. Members shall comply with the requirements of The Bills of Sale Act 1878, the Bills of Sale Ireland Act 1878 and the Bills of Sale Act (1878) Amendment Act 1882, the standard industry practice of ensuring that the members' interest in the assigned vehicle is registered, within 24 hrs of the making of the agreement with a recognised Asset Finance Register such as HPI Ltd, other relevant laws, codes of practice and this Code insofar as it is compatible with the foregoing.
        2. Members shall provide the customer with the Industry Standard 'Bill of Sale Borrower Information Sheet'.
      1. Members shall establish and implement policies and procedures for dealing with customers whose accounts fall into arrears that are fair, clear, not misleading and members agree to fully comply with both the word and spirit of the section entitled 'Handling of default and arrears' of the OFT Irresponsible Lending Guidance.
      2. Any policies and procedures for dealing with customers whose account falls in arrears shall make specific provision for, amongst other matters, the fair and appropriate treatment of vulnerable customers such as those known to or reasonably believed to lack the mental capacity to make relevant financial decisions at a particular time.
      3. Members shall consider cases of financial difficulty sympathetically and positively, treat customers in default or arrears difficulties with understanding, forbearance and due consideration and encourage their customers to contact them should they experience financial difficulty.
      4. Members shall, where appropriate, refer customers to debt counselling organisations and notify customers where they can get free advice, such as Citizens Advice Bureaux, Money Advice Centres, National Debtline, the Consumer Credit Counselling Service or Consumer Direct. Members will work with debt counselling organisations to assist their customers.
      5. Members shall suspend, for a period of not less than 30 days, the active pursuit of recovery of a debt from a customer in default or payment difficulties under circumstances in which a bona fide debt advisor is assisting the customer in a agreeing a repayment plan.
      6. If a member passes a customer's account to another person to collect overdue payments, such as a debt collector or solicitor, the member will inform the customer. Members will always choose debt collection firms that agree to abide by this Code or the Credit Services Association Code and the OFT Debt Collection Guidelines.
    8. Enforcement and Debt Collection
      1. Members shall have due regard to the Debt Collection Guidance issued by the Office of Fair Trading (the OFT) and in particular shall not engage in any unfair business practices identified in that Guidance.
      2. Members shall have due regard to: 'Irresponsible Lending-OFT guidance for creditors' and in particular shall not engage in any irresponsible lending practices identified in that Guidance under the heading 'HANDLING OF DEFAULT AND ARREARS'.
      3. Members shall ensure, by reviewing annually their debt collection procedures and those of any third parties they employ, that they conform to high ethical standards and allow for proper consideration of the customer's circumstances and in particular

        (a) encourage customers in financial difficulties to inform them of their difficulties at the earliest possible moment (and members will endeavour to respond sympathetically, without prejudice to members' rights);

        (b) provide in all relevant correspondence the name or title of a specially trained member of staff who may be contacted if difficulties arise; and

        (c) take into consideration, before determining whether to enforce an agreement, all information supplied by the customer or otherwise in relation to the cause of any default and the customer's future ability to repay. If the customer has disclosed multiple debt problems, members shall inform the customer of the availability of advisory services.

      4. Members should suspend the pursuit of recovery of a debt from a borrower, under circumstances in which notification has been given and/or it is reasonably believed that the borrower lacks the mental capacity to make relevant financial decisions regarding the management of his debt at that time, unless or until a reasonable period of time has been allowed for relevant evidence to be provided as to the likely impact of the capacity problem on the borrower's ability to manage his debt and deal with a debt recovery business. The appropriate means of collecting evidence, in appropriate circumstances, could be to use the standard Debt and Mental Health Evidence Form (DMHEF), developed between MALG and the Royal College of Psychiatrists.
      5. Members shall not impose charges, of whatever nature, on customers who are in arrears unless the nature of those charges are disclosed at the Pre-contract stage and are limited to doing no more than covering the member's costs.
      6. Members shall allow for alternative, affordable, payment amounts when the borrower or his appointed debt advisor or representative makes a reasonable proposal.
      7. Members shall regard the lawful seizure of a secured asset as a serious enforcement option, to be taken only when attempts of have failed with the customer, to mutually agree a realistic and sustainable arrangement to clear arrears.
      8. Members should not, except in exceptional circumstances such as proven identity fraud, consider seizure of the vehicle unless
        1. the amount of the customers arrears shortfall is no less than the equivalent of

          a) the sum of the last two payments required to have been made, under a monthly paid agreement, before that time; or

          b) the sum of the last four payments required to have been made, under a weekly paid agreement, before that time; and

        2. the requirements of section 87B (Notice of Sums in Arrears) of the Act have been complied with prior to serving a Default Notice under section 87 (1) of the Act.
      9. Notwithstanding the provisions of the Bills of Sale Act 1878, the Bills of Sale Ireland Act 1878 and the Bills of Sale Act (1878) Amendment Act 1882, members shall, upon the lawful seizure of the vehicle, hold the vehicle in safe keeping for a period of not less than 14 days to allow the customer to make representations to resolve the matter or to make application to the court under section 7 of the Bills of Sale Act (1878) Amendment Act 1882 to restrain the member from selling the vehicle. Members shall take all reasonable steps to ensure that seized vehicles are sold for the highest obtainable market price.
      10. Members shall not apply for a charging order on the customer's home (the property) to secure an outstanding debt, except under the following circumstances

        (a) the outstanding debt is no less than £500 and, for whatever reason, a member is unable to gain lawful possession of the assigned vehicle; or

        (b) the outstanding debt is no less than £500 and bad faith by the customer is shown, which includes; intent to deceive or mislead a member to gain some advantage, dishonesty or fraud in the transaction.

      11. Where members have obtained a charging order under 4.8.10 (a) or (b), those members shall not seek an order of the court for the sale of the judgments debtors home.
      12. Members shall allow customers who are in arrears under the agreement, the option to voluntary surrender the assigned vehicle as full and final settlement of all claims against the customer except where:

        a) a default notice has been served under s87 of the Act, the default notice remains unsatisfied and instructions have already been issued to an authorised person to recover the vehicle; or

        b) it is established that the vehicle has sustained malicious damage of whatever nature.

        Members shall provide the customer with information on the voluntary surrender option at the Pre-contract information stage and at the time a default notice is served. Members shall not place undue pressure on the customer to adopt this option.

    1. Members shall afford innocent purchasers of vehicles, that are subject to a Bill of Sale, the same protection as afforded under the Hire-Purchase Act 1964 Part III - 'Title to Motor Vehicles on Hire- Purchase or Conditional Sale', but only insofar as title shall transfer to the innocent purchaser in the event that the Member failed to register his interest in that vehicle with a relevant Asset Finance Register Company within 24 hours of execution of the agreement.
    1. Members shall ensure that any Debt Collection Agencies they employ shall be licensed under the Consumer Credit Act 1974.
    2. Members shall monitor those Debt collection agencies compliance with the Consumer Credit Act 1974, regulations under that Act, relevant codes of practice, debt collection guidance issued by the Office of Fair Trading and this Code insofar as it is compatible with the foregoing.
    1. Members shall respect personal information supplied to them by customers and shall inform customers of the purposes for which this information is intended to be used and disclosed, before it is given by the customer.
    2. Members shall observe a strict duty of confidentiality about their customers (and former customers) personal financial affairs and shall not disclose details of customers accounts or their names and addresses to any third party, except for the purposes of filing with credit reference agencies and in the following cases:

      (a) where they are legally compelled to do so;

      (c) where there is a duty to the public to disclose;

      (d) where the interests of the member requires disclosure;

      (e) where disclosure is made at the request, or with the consent, of the customer.

      Members shall not use exception (c) above to justify the disclosure for marketing purposes of details of customers' accounts or their names and addresses to any third party, including other companies within the same group.

    3. Members who use the services of credit reference agencies and/or fraud prevention agencies shall ensure that any information they supply about customers and the conduct of their accounts to credit reference agencies and/or fraud prevention agencies is complete and accurate.
    4. Members shall at all times comply with the Data Protection Act 1998 when obtaining and processing customers' personal data and shall explain to their customers that they have the right of access, under that Act, to their personal records held on computer files.
    5. Members shall advise customers of their right not to receive marketing information from the member or a third party with whom the member is connected. Members shall comply in that regard with the requirements of the Data Protection Act 1998 and the Privacy and Electronic Communications (EC Directive) Regulations 2003.
    1. General
      1. Members shall deal promptly and at an appropriate management level with complaints. Members shall establish a complaints procedure and furnish information on request about their complaints procedure. Customers shall be told what further steps are available if they believe that the complaint has not dealt with satisfactorily. These steps include the complaint being referred to a senior manager of the Member, to the CCTA and the ultimate resort of the unresolved complaint being referred to the Financial Ombudsman Service (FOS).
    2. Customer Complaints
      1. The following shall apply to complaints made by member's customers to the Association in relation to customer transactions. If a customer makes a complaint to the Association in relation to an account or an agreement with a member, the Association shall, in the first instance, refer the complaint to a senior executive of the member, for consideration.
      2. If the complaint is not resolved to the customer's satisfaction, unless the customer wishes to refer the complaint to the Financial Ombudsman Service, the Association (through an appropriate representative) shall endeavour to conciliate between the customer and the member to restore communication between the customer and the member where this has broken down. The Association shall accept, for conciliation, complaints made against members and subsidiary companies of members.
      3. Where a complaint cannot be resolved by conciliation, the customer shall be entitled to seek resolution by the Financial Ombudsman Service.
      4. Nothing in this Code restricts or is intended to restrict the rights of a customer or a member to pursue remedies through the Courts or the Financial Ombudsman Service.
      5. The conciliation scheme shall not be invoked where a customer's complaint has already been considered under the dispute resolution scheme of other relevant Codes of Practice or of the Financial Ombudsman Service or where the complaint has been the subject of a judicial decision.
      6. Members shall notify customers of their complaints procedure, including the customer's right to seek resolution of the complaint under the Conciliation Scheme and the Financial Ombudsman Service.
    1. Members shall satisfy themselves about the identity of a person seeking to enter into an agreement or to open an account, to assist in protecting their customers, members of the public and themselves against fraud and money laundering.
    2. Members shall establish, maintain and implement fraud prevention and anti-money laundering procedures and client identification procedures and train their staff in operating such procedures.
    3. Members shall comply with all relevant legislation and guidance relating to the prevention of fraud, money laundering and client identification including relevant Money Laundering Regulations and guidance issued by The Joint Money Laundering Steering Group.

    In this Code reference to Acts or Regulations shall be construed as such Acts or Regulations respectively, as amended or re-enacted from time to time.

    1. The Council may make such changes to this Code, as it may consider appropriate from time to time, by a majority of the members of the Council present and voting. In the event of an equality of votes the Chairman of the Council shall have a casting vote in addition to the vote to which he is entitled as a member of the Council.
    2. The Council shall give members at least 30 days' notice in writing of any changes to this Code.



This podcast looks at how second hand car buyers were at risk of having their cars repossessed due to outstanding debts by the previous owner. The remainder of the podcast covers irrelevant topics.

The dangers of this happening should now be minimal as loogbook lenders are now required to register their interest in a vehicle on a suitable asset finance register within 24 hours of completing a credit agreement. This means that when a potential car buyer carries out a vehicle check, the outstanding debt will be flagged up.


logbook loans BBC 5 Live investigation



Assuming you have a solid business model, the first thing you will need in order to operate is a Consumer Credit License. Most businesses that provide goods and services on credit or for hire, lend money or provide debt collecting, debt counselling or debt adjusting services to consumers need to have a credit licence granted by the Office of Fair Trading (OFT). If you intend on operating as a sole trader this lcense will cost you £670. As any other legal entity, such as a limited company, the fee increases to £1,466. These fees are payable every five years.

Additionally, you must notify the OFT of the names you intend to use for your business. This includes domain names. A standard credit licence authorises a licensee to carry on a business under the name or names specified on the licence but not under any other name. As things stand, I cannot carry out any licensable activities such as lending or credit broking on this website as the domain elogbookloans.com does not appear on my license. In accordance with the Consumer Credit Act, the OFT will only issue licenses where the trade names are not considered to be misleading or udesirable. Examples of misleading names include those that appear to offer a service which cannot be delivered or suggest a completely different scale of operation from that carried on. Other misleading names suggest authorisation by a public body or those that imply a charitable status when the organisation is profit-seeking.

When it comes to the actual form you will need to provide the OFT with information such as:

  • Personal details of individual involved in your logbook loans business
  • Details of current or previous licenses applied for, or held by your business and any people involved within it
  • Information on convictions, County Court Judgements (CCJs) and court orders
  • Information on any director disqualifications
  • Bankruptcies and insolvency details
  • Company administration or liquidation details
  • Information on any other disciplinary proceedings

You may also be required to send in the following with your application:

  • Approval for trading names and domain names

    Credit competence forms are designed for applicants to demonstrate that their businesses are able to comply with all relevant legislation as well as generally accepted standards of business practice. These forms are required for licensed activities that are considered high risk. Two prominent examples of these are payday loans and logbook loans. These forms are detailed and require individuals to outline a concrete system via which you will be able to comply with current practice requirements. This is where joining a Credit Trade Association will prove extremely useful. I highly recommend this if you are starting out, especially if you're not an expert.

  • Signed declaration form

If your intention is to become a logbook lender you should join the Consumer Credit Trade Association (CCTA). You can join as a logbook lender for a yearly subscription fee of £2,100 including VAT. They cater to this niche credit industry and were involved the adopted logbook loan code of practice Joining the CCTA will not only adds weight to your application but also allows you access to the following benefits:

  • Legal advice
  • Complaints concilliation service
  • Ready to use fully compliant credit agreements
  • Training courses

The CCTA will certainly become a key partner in your business, especially during its formative years.


This website is designed to help you understand logbook loans and how they work. I hope to enable you to make an informed decision based on impartial advice. Personally, I have gone through the rigorous application process required to obtain a logbook lending license and hold some experience within the payday loan industry.

Please note that this website does not offer a brokerage or lending service and is for informational purposes only.

Thank you for visiting.


Logbook loans


Custom Search

PRIVACY POLICY for www.elogbookloans.com

At www.elogbookloans.com we are committed to safeguarding and preserving the privacy of our visitors. This Website Privacy Policy has been provided by the legal resource www.diylegals.co.uk and reviewed and approved by their solicitors. This Privacy Policy explains what happens to any personal data that you provide to us, or that we collect from you whilst you visit our site. We do update this Policy from time to time so please do review this Policy regularly. Information We Collect

In running and maintaining our website we may collect and process the following data about you

  1. Information about your use of our site including details of your visits such as pages viewed and the resources that you access. Such information includes traffic data, location data and other communication data.
  2. Information provided voluntarily by you. For example, when you register for information or make a purchase.
  3. Information that you provide when you communicate with us by any means.
Use of Cookies

Cookies provide information regarding the computer used by a visitor. We may use cookies where appropriate to gather information about your computer in order to assist us in improving our website. We may gather information about your general internet use by using the cookie. Where used, these cookies are downloaded to your computer and stored on the computer's hard drive. Such information will not identify you personally. It is statistical data. This statistical data does not identify any personal details whatsoever. You can adjust the settings on your computer to decline any cookies if you wish. This can easily be done by activating the reject cookies setting on your computer. Our advertisers may also use cookies, over which we have no control. Such cookies (if used) would be downloaded once you click on advertisements on our website.

Use of Information

We use the information that we collect from you to provide our services to you. In addition to this we may use the information for one or more of the following purposes:

  1. To provide information to you that you request from us relating to our products or services.
  2. To provide information to you relating to other products that may be of interest to you. Such additional information will only be provided where you have consented to receiving such information.
  3. To inform you of any changes to our website, services or goods and products.

If you have previously purchased goods or services from us we may provide to you details of similar goods or services, or other goods and services, that you may be interested in. Where your consent has been provided in advance we may allow selected third parties to use your data to enable them to provide you with information regarding unrelated goods and services which we believe may interest you. Where such consent has been provided it can be withdrawn by you at any time.

Storing Your Personal Data

In operating our website it may become necessary to transfer data that we collect from you to locations outside of the European Union for processing and storing. By providing your personal data to us, you agree to this transfer, storing or processing. We do our upmost to ensure that all reasonable steps are taken to make sure that your data is treated stored securely. Unfortunately the sending of information via the internet is not totally secure and on occasion such information can be intercepted. We cannot guarantee the security of data that you choose to send us electronically. Sending such information is entirely at your own risk.

Disclosing Your Information

We will not disclose your personal information to any other party other than in accordance with this Privacy Policy and in the circumstances detailed below:

  1. In the event that we sell any or all of our business to the buyer.
  2. Where we are legally required by law to disclose your personal information.
  3. To further fraud protection and reduce the risk of fraud.
Third Party Links

On occasion we include links to third parties on this website. Where we provide a link it does not mean that we endorse or approve that site's policy towards visitor privacy. You should review their privacy policy before sending them any personal data.

Access to Information

In accordance with the Data Protection Act 1998 you have the right to access any information that we hold relating to you. Please note that we reserve the right to charge a fee of £10 to cover costs incurred by us in providing you with the information.


Please do not hesitate to contact us regarding any matter relating to this Privacy Policy at support@elogbookloans.com. No logbook loan contact number is available.