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Logbook Loans Popular This Holiday Season Alternative Financing

by Jim ONeil on December 22, 2011

in logbook loans

The holiday season typically involves a lot of spending. UK residents spend money on gifts, entertainment, travel, and more. Unfortunately, many do not have enough cash so they must turn to loans bank offered and from others sources like payday lenders.

Logbook loans have become a popular form of borrowing this holiday season. People throughout the UK are using the equity in their automobile to secure cheap loans for holiday expenses.

Companies like Mobile Money offer logbook loans to UK consumers. This company was the first of its kind in the UK and has been steadily increasing its presence. It offers same day loans to people in order to reduce financial pressures. Simon Furnival, operations director for Mobile Money, stated that more UK residents are using these short-term loans during this holiday season.

Being able to get cash in less than 30 minutes is an attractive method of financing.

Car owners simply submit their V5 car logbook to the company in exchange for a short-term loan. Mobile Money retains the MOT certificate and logbook until the loan has been repaid. Borrowers make installment payments to receive loans of between £200 and £25,000, based on the value of their car.

The maximum repayment term is 36 months and the borrower retains use of the vehicle during the loan term, making this arrangement very convenient.

The approval decision for each loan is based on the value of the automobile and ability of the applicant to repay the money. Consumers are not required to have a bank account to qualify for this type of loan. However, they must be residents of Wales or England and prove their age, income, and legal ownership as well as clear (or almost clear) vehicle financing.

Mr. Furnival said that self-employed people and individuals with a poor credit history can also receive financial assistance through a Mobile Money logbook loan.

Mobile Money alone has 33 branches throughout Wales and England. To qualify for a logbook loan, a vehicle can be either new or used and some cars are more than ten years old. Various methods of loan payment are accepted, including postal orders, debit cards, standing order payments, and banker’s draft.

Customers can even deposit cash payments at a Mobile Money location or a Barclays Bank branch. However, direct debit and credit card payments are not accepted.

Customers are only charged loans APR for the months the loan is active. Early repayment without penalty is available, allowing borrowers to reduce their interest payments. Consumers can apply for a Mobile Money logbook loan via telephone or in-person at a branch.

Loans are available six days a week and the entire lending process is quick and convenient.

When searching for a logbook loan, consumers should make sure the firm is licensed and regulated by the Office of Fair Trading. Being a member of the Consumer Credit Trade Association (CCTA) is also a strongpoint, as it enhances the credibility of the organization.

Logbook lenders that have been in business for many years and have a strong presence are usually the most reputable.

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