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The OFT asked the Tribunal to strike out Log Book Loans' appeals because of evidence that emerged during the appeal hearing. Log Book Loans admitted that thousands of letters had been sent to borrowers in the name of a firm called Adams Spencer & Phillips (Legal Services) Limited ('ASP') falsely threatening to take legal action on behalf of NRL.
The First-tier Tribunal found that:
- the letters were sent to give borrowers a false impression that ASP was a body authorised to carry on activities as if it were a firm of solicitors, such as the conduct of litigation
- ASP actually had no employees and was not a body or individual duly authorised to bring legal action on behalf of NRL
- deceptive practices included that between September 2009 and April 2010, employees of NRL called customers pretending to be employees of ASP
- the ASP letters were part of a deliberate deceit
- the deception was played out, not simply in front of customers but also with third parties such as solicitors acting for borrowers, as well as the Financial Ombudsman Service.
Read more here (OFT - Link)----> OFT welcomes Tribunal - The Office of Fair Trading
The BBC has learned that Britain's largest logbook loan brand is active again just days after the firm that owned it went into administration. Logbookloans.co.uk is now under the new ownership of Hermes Property Services Limited. It is offering loans at 478% APR secured against the value of a car or motorbike. The Office of Fair Trading (OFT) had taken steps to revoke the credit licence of the brand's previous owners.
Old laws
With a logbook loan, the lender has the right to seize a vehicle and sell it without going to court if they default on the loan. Such firms rely on an archaic piece of legislation, the Bills of Sale Act 1878, introduced before cars were even invented. It means that when you take out a loan your car becomes the property of the people lending you the money....Read more here---: Britains biggest logbook loans brand active again