An Explanation about your Log Book Loan
Before we can process your loan application, we must provide you with important information for borrowers who are offering their vehicles as security for a loan, known in law as ‘adequate explanations’. Full Details of how much you will pay will be provided prior to & also at the time of the appointment before the loan process commences, in line with regulation CONC 4.2.5 R. V5 Loans Limited (“we” or “us”) are regulated under the Consumer Credit Act 1974 (as amended), and the security is offered by a Bill of Sale, under the Bills of Sale Act 1878 and the Bills of Sale (1878) Amendment Act 1882. We have signed up to the Industry Code of Practice laid down by our trade association the CCTA (you can find the full Code of Practice on our website at www.v5loans.co.uk/index.php/our_commitment).
This type of lending (known as "Log Book Lending") is designed for medium term use only. Log Book Lending is an expensive form of credit which is unsuitable for supporting sustained borrowing over longer periods, and would be expensive as a means of longer term borrowing.
The following is written in plain English to explain what this means for you. However, this information sheet is not a comprehensive guide and independent legal advice should be obtained if you are unsure of your rights or liabilities under a bill of sale. This document is provided as pre-contractual information to you and does not form, or amend, any loan agreement we enter into with you. Please take this document away to review at length if required
WHAT IS A BILL OF SALE?
A Bill of Sale is what gives us our security over your vehicle.
Once you sign the Bill of Sale, we have security over the Vehicle. This means that:
Until you have repaid your loan we are technically the legal owner of the Vehicle. However, you can still keep driving it and once you have paid off your loan the ownership goes back to you.
The Bill of Sale will be registered with the High Court in London and the register is open to public inspection.
If you default on the payment of your loan, or other terms within the loan agreement, we will have the right to serve a Default Notice on you under the Consumer Credit Act 1974. If you do not make good the default, within the time stated in the notice, we will be entitled to take possession of the Vehicle and sell it. You should note that we do not need a court order to repossess the Vehicle and we may enter your premises to take possession of the Vehicle.
You can challenge our decision during this period by going to court. Further advice on your rights is available from your local Citizen's Advice Bureau.
If the Vehicle is repossessed and sold for an amount of money that is insufficient to pay off the money you owe us you will still have to pay the shortfall. The sale of the Vehicle does not put an end to the loan. Cars are generally a depreciating asset and this is possible if the car has reduced in value between the signing of the agreement and any sale by us.
If we sell the Vehicle for more than the outstanding loan balance (including interest and charges) we will pay you any surplus amount.
WHAT CAN YOU EXPECT FROM US?
Lend responsibly and treat our customers fairly and with due consideration.
We may apply £8.00 late payment charges if we have to write or telephone you regarding late payments. We will only do so where such charges are reasonable and to recover costs we have incurred.
If you have a material change of circumstances we will take this into consideration and may agree to reduce your repayments until such time as you are able to continue with your original contractual repayments.
If you have a complaint we will take it seriously and deal with it properly and promptly.
Until we have terminated the loan agreement you may return the Vehicle to us in full settlement of the debt to us, provided that instructions have not already been issued to an authorised person to recover the Vehicle and you act in good faith and the Vehicle has not been maliciously damaged.
We will only repossess the Vehicle after we have taken reasonable steps to obtain contractual payments from you by other means.
If we do repossess the Vehicle we will provide you with a 14 day period in which to repay the debt and re-purchase it or we may reach an alternative suitable agreement with you. If we do have to sell the Vehicle we will endeavour to obtain the best price for it. We will only sell the Vehicle after a period of 14 clear days has elapsed from it being repossessed. If the Vehicle is sold for an amount more than you owe then we will pay the excess amount to you.
Repossession is an expensive process. If we are forced to recover the Vehicle on which your loan is secured significant extra costs may be added to your account.
You have the right to withdraw from this agreement (without giving any reason) before the end of 14 days beginning with the day after the agreement is made. You can notify us of your intention to withdraw by:
writing to our collections department at V5 Loans Ltd, Clarendon House, 125 Shenley road, Borehamwood, Herts WD6 1AG; or
contacting our collections department by telephone on 07909 116555.
If you withdraw from the agreement you must repay the credit plus interest thereon at the contractural rate from the day the credit was provided to the date of repaying it. Payment may be made as follows:
sending a cheque made out to 'V5 Loans Limited’ to our address as given above;
contacting our collections department by telephone on 07909 116555 and making a debit or credit card payment over the phone (subject to the charges detailed above);
making a payment directly into any Barclays bank using the paying-in book provided to you by us on signing the loan.
Both the total amount of credit and interest accrued from the date the credit was provided must be paid without delay and no later than 30 calendar days after giving notice of withdrawal.
WHAT DO WE EXPECT FROM YOU?
If you miss payments we may take steps to repossesses the Vehicle and sell it without recourse to court and/or take legal proceedings to recover any amount due. Further, missing payments may make it more difficult/expensive for you to obtain credit in the future if we record your default with one or more credit reference agencies.
If your circumstances change you should contact us immediately to discuss any problems that you may have with keeping your payments up to date.
We expect you to look after and maintain the Vehicle to the same condition (subject to reasonable wear and tear) as it is now (i.e. at the time you borrow from us), and keep the Vehicle insured in accordance with our agreement with you, until you have repaid all amounts due to us, unless we agree to waive these requirements.