If the borrower defaults, the logbook lender can seize the vehicle and look to the proceeds of sale for satisfaction of the loan.
Unlike a car title loan in the United States,[2] the logbook lender can, under English law, seize the vehicle without a court order.
[4] FCA compliant logbook lenders utilise your vehicle as security using a Bill of Sale, granting temporary ownership during the term of an agreed loan.
As a solution, a small pick of lenders have managed to lead the way forward in delivering logbook loan services to Scottish residents.
[6] The response left the Bills of Sale Acts intact and led to the introduction of a voluntary code of practice for logbook lenders.