A checklist when considering companies offering logbook loans

16th August 2010

Logbook loans can be a viable option for you to use the assets you have in order to get a short-term loan. Looking around to see the different logbook loan services which are available for you to consider can also be worthwhile, and there can be some checks to be made on your part to ensure that you are entering an agreement with a company you can trust.

The one thing you should always do with a logbook loan provider is make sure that they provide contact details such as a telephone number and an address. Additionally, you should check that they have a company registration number, too – something which confirms that they are registered with Companies House. Should you wish, you can then check their business name against the records which they have to submit to this regulatory body for England and Wales – records which are made publicly available.

There should be some legal documentation for you to look through regarding your application for a logbook loan. Normally, a company can provide this in the form of a privacy policy or in their terms and conditions. It can be in your best interests to read this information, as from there you can ensure that you are entirely knowledgeable about the agreement that you are entering into. One of the main things which should be covered in a privacy policy is confirmation that the logbook loans company you are applying to will handle your information sensitively, and that they will work with the Data Protection Act in mind.

You definitely want to hear more about the feedback which previous customers who have used the logbook loans service have. This could be in the form of testimonials which are on the site – but do bear in mind that many websites will showcase the best feedback replies they receive to enhance their image in front of prospective consumers. Some of the best places to go can be consumer discussion boards, where members with first-hand experience will recommend particular companies for logbook loans whilst giving honest advice on businesses which had weaknesses in their offering.

Without question, you want to go to a logbook loan which has all of the information you need to make a decision clearly on show. Transparency within one of these companies is vital as you need to know about the interest rates, the duration of the loan agreement, the frequency of repayment instalments and, ideally, a calculation which will demonstrate the cumulative amount you will repay with your loan amount and interest rates by the end of the loan period. All of this information demonstrates in very real terms what you can expect from a financial view once you have signed the dotted line.

Logbook loans should only be taken when necessary and it can be a big decision to make because of how the loan amount is secured against your car. As such, you need to ensure that you go with a company which is as serious as you are regarding the commitment you are making.

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