Are Logbook Loans Legal?

When researching logbook loans, you’re bound to come across forums or blog posts questioning the legality of logbook loans. We assure you that any claims that logbook loans are illegal are completely false and untrue. Logbook loans are absolutely legal and provided you’re dealing with legitimate lender, logbook loans are very safe. The questions of legality are usually brought about when discussing the interest rates of logbook loans.

Since these are bad credit loans, they come with higher interest rates than you would get from a personal loan at a bank. This is true of all high risk loans such as payday loans, cash advances, and any same day loan. However, the interest rates of logbook loans are not as high as these other types of loans especially since you’re offering collateral. If logbook loans were overcharging for the loans, then you can guarantee the government would come down on the entire industry for usury charges.

 Age 18+
 UK Resident
 Own a Vehicle
 Vehicle Model Year 2008 or Newer
Vehicle Should be Free of Finance

If you meet the requirements you could get a loan!

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Money Delivered Fast – Same Day!
No Admin or Setup Fee
Bad Credit Considered
Can Borrow £200 to £50,000

Need cash in a hurry? You get cash the same day!

And you keep your vehicle!


Another question people have in regards to the legality of logbook loans is the collateral portion. Some people are hesitant to hand over their V5 registration to lenders as security. This process is perfectly legal as well. Every legit business offering logbook loans will have you sign paperwork outlining the terms of the deal and the stipulations regarding repossession of your vehicle. If you’re worried about this process at all read over the paperwork to make sure you understand all the rules of the contract.

By signing the loan documents you’re agreeing to all of the guidelines and provisions. The most important part to read over in your paperwork from the lender is the portion regarding repossession. Some people have claimed to have their vehicles repossessed illegally and then after reading through their contract they realize that the lender actually had every right to seize the vehicle. Being knowledgeable about your loan will help you avoid legal issues later on.