Logbook loan claims

Last updated 20 October 2026 · Written by the Claims & Refunds team · How we write our guides

A logbook loan is a loan secured on a car (or other vehicle) you already own. You sign a “bill of sale”, which passes ownership of the car to the lender until the loan is repaid, while you keep driving it. If you fall behind, the lender can take the car and sell it.

Logbook loans still run under the Bills of Sale Acts of 1878 and 1882. The Law Commission recommended replacing them with a modern “Goods Mortgages” law, but in May 2018 the government decided not to go ahead.

Logbook lenders have been regulated by the FCA since April 2014. In 2014 the FCA warned that they had to “dramatically raise their standards”, after finding little or no checking of whether people could afford the loans, and in 2015 it found typical APRs of 400% or more, plus fees. Logbook loans aren’t covered by the payday loan price cap.

What happened to the logbook lenders

• Logbook Lending Ltd (trading as Log Book Loans 247 and others) went into administration on 1 July 2026. Existing agreements continue, and complaints and claims go to the administrators.
• Varooma (Greenlight Credit Ltd) went into administration in May 2022 and stopped lending.
• Some other logbook lenders still trade. You can complain to them directly, and then to the Financial Ombudsman.

What the Ombudsman looks at

The Ombudsman expects the checks to match your circumstances and treats the risk of losing your car as part of the picture. Complaints are also about how the agreement was explained, fees and charges, and how the lender behaved before repossessing a vehicle.

Signs the lending was unaffordable

• The repayments took a large share of your income
• You already had a lot of other debt, or were using payday loans
• The lender didn’t ask about your income and spending
• You were rushed or pressured into signing
• Your car was repossessed, or you were threatened with it

What could you get back?

If a complaint is upheld, the usual outcome is a refund of the interest and charges you paid on the lending that shouldn’t have been given, plus 8% simple interest a year on top, and any negative marks about that lending removed from your credit file. If you still owe money, the refund may be taken off the balance first.

How a claim works

1. Complain to the lender. You, or a firm acting for you, write to the lender explaining why the lending was unaffordable.
2. The lender has 8 weeks to send a final response.
3. If you’re not happy with their final response, you usually have 6 months to take it to the Financial Ombudsman Service. If 8 weeks pass with no final response, you can go to the Ombudsman straight away. It’s free.

You can do all of this yourself: our free complaint letters show you how. Or, if you’d rather not, we can introduce you to a regulated firm that will handle it for you, for a fee.

Is there a time limit?

Usually you need to complain within six years of the lending, or within three years of when you realised (or should have realised) you had reason to complain, whichever is later. Lenders sometimes look at older complaints anyway, and the Ombudsman can decide whether a complaint is in time. If you’re not sure, it’s worth checking.

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Questions people ask