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Citizens Advice responds to logbook loans report from the Law Commission

12 September 2016

Citizens Advice supports the recommendations from the Law Commission’s report on logbook loans including protections for people who buy a second hand car not knowing there is a logbook loan associated with it.

Gillian Guy, Chief Executive of Citizens Advice, said:

“Patchy and outdated laws on logbook loans have failed borrowers and consumers.

“High interest rates and charges, as well as aggressive debt collection practices have caused serious financial difficulties for borrowers of logbook loans. But the problems don’t stop there. People who have bought a second hand car not knowing it had a logbook loan attached have been chased for the debts and lost their car as a result.

“It’s good the Law Commission has recognised the difficulties logbook loans are causing by recommending changes to help stop unfair repossessions- although this will need to be monitored to ensure borrowers really are being protected. Writing off debts if the car is now in the hands of another owner will also help motorists avoid losing their cars for someone else’s debt.”

Citizens Advice has been calling for a major reform of the law around logbook loans for some time, and in particular recommended curbs on aggressive debt collection practices, people could end the agreement and return the car if payments become unaffordable and there were protections for those who bought a car not knowing it had a logbook loan.

Notes to editors

  1. The Citizens Advice service comprises a network of local Citizens Advice, all of which are independent charities, the Citizens Advice consumer service and national charity Citizens Advice. Together we help people resolve their money, legal and other problems by providing information and advice and by influencing policymakers. For more see the Citizens Advice website.
  2. The advice provided by the Citizens Advice service is free, independent, confidential and impartial, and available to everyone regardless of race, gender, disability, sexual orientation, religion, age or nationality.
  3. To get advice online or find your local Citizens Advice in England and Wales, visit
  4. You can get consumer advice from the Citizens Advice consumer service on 03454 04 05 06 or 03454 04 05 05 for Welsh language speakers.
  5. Local Citizens Advice in England and Wales advised 2.5 million clients on 6.2 million problems in 2014/15. For full service statistics see our publication Advice trends.
  6. Citizens Advice service staff are supported by more than 21,000 trained volunteers, working at over 2,500 service outlets across England and Wales.