Steps to take when your car is repossessed by a logbook loan company
What you can do if the car you bought is held under a logbook loan.
11:44 04 November 2013
Cars bought under a logbook loan or a bill of sale, technically, still belong to the company that financed the car loans until they are paid in full.
If you happened to buy a car that is still under a logbook loan and the previous owner of the car defaults on the monthly repayments, then you could lose the car as the company has the right to repossess it immediately, even without the benefit of a court order.
Steps to take if the logbook loan company threatens to repossess the car:
- Demand proof of identity and official authorisation that they can repossess the car
- Require to see the Bill of Sale papers, this is your unquestionable right
- If possible, call the local authorities for assistance in validating the Bill of Sale
- If you feel that the enforcement officer is using undue force to execute the repo order, call the police
- Get all the contact details of the logbook loan lending company and ask them to sign for the car that has been taken
Steps to take if the logbook loan company already took your car
- If the vehicle has been repossessed by the lending company, take legal steps to reclaim the vehicle as well as the money from person who sold you the vehicle.
- You can also assume the balance of the logbook loan and sue the seller to get your money back.
- If you are just interested in getting your money back, then you can deal with the seller by taking him to court. This time, you may have to get some expert advice prior to filing charges against the seller.
Steps to take if you want to make a complaint against a logbook loan lender
- See if the logbook lender is a member of the Consumer Credit Trade Association (CCTA) which has some rules laid out which require its members to register vehicles bought under logbook loan which will appear in the vehicles records that the vehicle is still under logbook loan.
- CCTA also imposes certain protocols when repossessing a vehicle so that if an enforcement officer acted rudely or forcefully, you can file a complaint to the CCTA.