Government looks to ban logbook loans

Published on

Consumer Minister reveals plans to ban Bills of sale lending

The Consumer Minister Kevin Brennan has unveiled plans to ban the use of what he claims to be an outdated law used to sell high-cost loans.

Bills of sale are typically used for ‘logbook’ loans which are secured against the value of the consumer’s car.

Brennan said: “These bills of sale are archaic and allow vulnerable peoples’ goods to be seized without a court order. They were developed in the days of Charles Dickens and don’t meet 21st century consumer standards. They can encourage people to slip even further into debt rather than taking control of their finances.

COMMENT ON MORTGAGE SOUP

We want to hear from you!
Leave a comment and get the conversation started.
You need to register to post, so please login or sign up below.

Latest articles

Hope Capital targets refurb market with high-LTV bridging product

Hope Capital has launched a new bridging loan product offering 75% net initial advance. It...

Savvy summer sellers deliver strongest July sales since 2020

July delivered the highest number of sales agreed for this month since 2020 as...

Newcastle for Intermediaries removes age cap on standard repayment mortgages

Newcastle for Intermediaries has abolished the maximum age limit for the repayment of standard...

Rising cost of living could stall housing market activity

The rising cost of living remains the most pressing concern for Britons and could...

The Mortgage Works cuts switcher rates for existing landlords

The Mortgage Works has announced reductions of up to 0.25 percentage points on selected...

Latest publication

Latest opinions

Tuning into later life lending conversations

There are certain conversations in our profession that can genuinely change the course of...

Right of Light risks: a looming shadow over construction projects

Gone are the days when a Right of Light infringement could be swiftly dealt...

Could a move to ‘enhanced advice’ also mean mandatory protection conversations?

The FCA’s recent Mortgage Market Discussion Paper (DP25/2) has got the industry talking about...

Take off the rose-tinted glasses and stop chasing a rate cut

Every six weeks the financial world raises its eyebrows at the prospect of a...

Other news

Tuning into later life lending conversations

There are certain conversations in our profession that can genuinely change the course of...

Hope Capital targets refurb market with high-LTV bridging product

Hope Capital has launched a new bridging loan product offering 75% net initial advance. It...

Savvy summer sellers deliver strongest July sales since 2020

July delivered the highest number of sales agreed for this month since 2020 as...