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As a former in-house solicitor for a logbook lender, I have more experience of LBLs than most. I've seen their advantages and their disadvantages. They have their uses, and are usually cheaper than a payday lender. As with most credit products, if you use them as intended, they work fine. Yes, they become expensive if you default on your repayments, but then again, so does your car loan (or indeed any other).

Fraud can be an issue, and I won't go into detail here for obvious reasons. An electronic system of registration of bills of sale is, for me, an obvious answer to the problem of debtors selling on the vehicle to an unsuspecting purchaser. And swearing an affidavit for registration is outdated and unnecessary, adding further costs for the lender (which are, of course, passed on to the borrower in the cost of credit). Trade associations can only do so much, and the industry is far better behaved than it once was, but there's still some work to be done.

Banning logbook loans is not the answer though (IMHO). They are a useful tool when you're down on your luck, need funds but have an imperfect credit history, you have a car but can't sell it because you need to retain use of it, and you can't afford to repay the whole sum on payday. They are tightly regulated by the FCA, but in my view the bill of sale system is the weak link so needs a digital update.

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