Information: Law Commission Looks Into 'logbook loans'

[julianps]

Today the Law Commission opens a consultation to reform the archaic 'Bills of Sale Act' that remains unchanged since Victorian times and underlies chattel mortgages or, in the case of cars, 'logbook loans'.

..., anyone buying a second-hand vehicle in good faith can also lose out, if it turns out that the vehicle is subject to a 'chattel mortgage' or 'logbook loan'. In law, the purchaser does not own the vehicle. Instead, they face three unfair options: pay off someone else’s logbook loan, lose the vehicle or pay for it again.(via HonestJohn)

I was not aware of this gaping hole in the HPI/Credit protection system; i.e. a car can be subject to unlisted credit that as a buyer you can't find out about. Buyer Beware!

Please also note the included caveat: "Logbook Loans' has become a generic term (like 'Hoover'), but is in fact a trading name of Hermes Property Services Ltd, registered in England and Wales number 6548951 Registered address: Bridge Studios, 34a Deodar Road, London, SW15 2NN. Authorised and regulated by the Financial Conduct Authority."

[tt82]

No issue with them but they should come up on HPI checks.