Spotting Logbook Loan Scams

Not to scare you or anything, but logbook loan scams are all around, and as long as there are logbook lenders and borrowers needing their help, these scams will never cease to exist. Here are the red flags that you should recognise to protect yourself from these lenders.

Too Persistent Lenders:

Too much of anything is not good. If the lender is constantly sending you unsolicited calls, emails, or letters, to the point that you feel harassed, you definitely should stay away. If they are already too persistent in encouraging you to get a loan from them, how worse can they get when collection time comes?

Very Cheap Second Hand Cars:

If someone offers you a second hand vehicle for sale, at an unbelievably low price, that should raise your suspicion. There have been a lot of cases reported about borrowers selling their vehicle after submitting it for a logbook loan. Unfortunately for the person who purchased the vehicle, the only choices will be to either pay the outstanding balance or to surrender the car, which both are not fun.

Too Good to Be True:

If the offer is too good to be true, it probably is. Keep in mind that logbook loans are expensive, and if you are offered a very low rate, you can expect to be hit by other surprise charges.