Log Book Loan scam – be on guard!

legal updates

Our client was shocked to learn that a customer had taken out a log book loan on a car before asking for a refund.

Read our disclaimer keyboard_arrow_down

This website content is intended as a general guide to law as it applies to the motor trade. Lawgistics has taken every effort to ensure that the contents are as accurate and up to date as at the date of first publication.

The laws and opinions expressed within this website may be varied as the law develops. As such we cannot accept liability for or the consequence of, any change of law, or official guidelines since publication or any misuse of the information provided.

The opinions in this website are based upon the experience of the authors and it must be recognised that only the courts and recognised tribunals can interpret the law with authority.

Examples given within the website are based on the experience of the authors and centre upon issues that commonly give rise to disputes. Each situation in practice will be different and may comprise several points commented upon.

If you have any doubt about the correct legal position you should seek further legal advice from Lawgistics or a suitably qualified solicitor. We cannot accept liability for your failure to take professional advice where it should reasonably be sought by a prudent person.

All characters are fictitious and should not be taken as referring to any person living or dead.

Use of this website shall be considered acceptance of the terms of the disclaimer presented above.

One of our clients has been the victim of a scam where they sold a second hand car only for the customer to point out shortly afterwards that there were a number of issues with it that he was not happy about. 

Nothing serious but the customer was adamant he only wanted a refund and so purely as a gesture of goodwill our client agreed to buy back the car that he had sold to the customer only a few days beforehand.

However, our client was shocked to learn that in that short time period the rogue customer had taken out a log book loan on the car and (not surprisingly) defaulted on it.  Therefore that rogue now has been paid twice. 

I suspect that the police will attempt to pass it off as “a civil matter” but the point is that whilst this is probably an isolated incident it may still be worth checking with HPI, if you are in a similar position to reduce the likelihood of you also being “stung”.

WeRecruit Auto LtdPermanent Automotive Recruitment from an experienced and trustworthy recruitment partner.

We cover roles within all departments and sectors of the Automotive industry, and are here to listen to your specific needs and find the most suitable candidates to fit your business.

Dennis ChapmanIn remembrance of Dennis Chapman 1951 -2015Read More by this author

Related Legal Updates

Can an entire family bring court proceedings for an alleged defective car?

Luckily the Ruffles’ family dog didn’t turn up either as no doubt Pooch would have been allowed a woof on the witness stand too!

Car Dealers and Consumers – A Modern Day Tale

Ambulance chasers and chancer consumers are two pet hates of the legal team and we relish dealing with their issues here at Lawgistics.

Failure to deliver goods – Business to Business (B2B) sales

In these circumstances, our client as the buyer, will be covered under Sections 27-29 of the Sale of Goods Act 1979 (“SOGA”).

The real difference between claims under and over £10k

Litigation isn’t always just about having a strong argument, there are many factors that can help you win a case and reduce your risk.

Warranty or Statutory Rights

We all regularly hear comments that a warranty covers consumer rights and there is a cut off of those rights once the warranty expires.

Customer’s vehicle damaged in your care

It is down to the Bailor to check the insurance position with the Bailee if they have any concerns.

Cost of living increase

With the increase in cost for just about everything, we anticipate that consumers will be feeling the squeeze and therefore, will either seek to reject vehicles or request for repairs to be undertaken.

Get in touch

Complete the form to get in touch or via our details below:

Phone
01480 455500
Address

Vinpenta House
High Causeway
Whittlesey
Peterborough
PE7 1AE

By submitting this quote you agree to our Terms & Conditions and Privacy & Cookies Policy.

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.