Monthly Archives: November 2011

Log Book Loans

Posted by diane.bantten

I make no apology for posting direct from the OFT website – this is important news for consumers.  Acquit of course specialises in Commercial Debt but felt it important to put this out there!

OFT welcomes Tribunal’s decision to strike out logbook loans’ appeal

125/11    18 November 2011The OFT has welcomed a Tribunal’s decision to strike out appeals by the UK’s biggest logbook loan businesses against the removal of their consumer credit licences.The First-tier Tribunal’s ruling to strike out the appeals of Nine Regions Limited (‘NRL’) and Log Book Loans Limited (together ‘Log Book Loans’) follows the OFT’s original decision that Log Book Loans were unfit to hold consumer credit licences.Logbook loans are secured on vehicles such as cars and motorbikes. If the borrower defaults, the loan company can seize the vehicle without going to court. Even after the vehicle is sold the borrower can still be pursued for any shortfall.The OFT asked the Tribunal to strike out Log Book Loans’ appeals because of evidence that emerged during the appeal hearing. Log Book Loans admitted that thousands of letters had been sent to borrowers in the name of a firm called Adams Spencer & Phillips (Legal Services) Limited (‘ASP’) falsely threatening to take legal action on behalf of NRL.The First-tier Tribunal found that:

  • the letters were sent to give borrowers a false impression that ASP was a body authorised to carry on activities as if it were a firm of solicitors, such as the conduct of litigation
  • ASP actually had no employees and was not a body or individual duly authorised to bring legal action on behalf of NRL
  • deceptive practices included that between September 2009 and April 2010, employees of NRL called customers pretending to be employees of ASP
  • the ASP letters were part of a deliberate deceit
  • the deception was played out, not simply in front of customers but also with third parties such as solicitors acting for borrowers, as well as the Financial Ombudsman Service.

David Fisher, Director of the OFT’s Consumer Credit Group said:

‘The OFT welcomes the Tribunal’s decision to strike out the companies’ appeals. The decision confirms our view that these companies are unfit to hold their consumer credit licences.

‘Intentionally deceiving debtors as part of a debt collection policy is an extremely serious matter, which calls into question a licensee’s fitness. We expect businesses licensed by the OFT to treat all their customers, including those in arrears, fairly and transparently.’


  1. A copy of the decision is on the First-tier Tribunal’s website.
  2. Log Book Loans can seek permission to appeal the decision of the First-tier Tribunal to the Upper Tribunal (Administrative Appeals Chamber) on the grounds that there has been an error of law. If the appeal period were to be extended in this way Log Book Loans would be able to trade under their licences until the end of the appeal period.
  3. The Consumer Credit Act 1974 requires most businesses offering credit, lending money or involved in activities relating to credit or hire to be licensed by the OFT.

New Year’s Resolutions

Posted by diane.bantten


As 2011 draws nearer to its end I have taken some time to ponder on the trend of instructions received by Acquit.  I have noticed is that Credit Controllers are taking longer to realise that they need third party assistance.  Perhaps they do realise but are trying to avoid instructing someone to collect their money and thus “save” money.  This is a false economy.  They are seriously hindering their employer’s cash-flow and chances of successfully recovering all monies that are owed.  The average age of overdue invoices coming into for collection is almost six months old!  Delay merely allows those that owe you money to utilise your money and ease their own cash-flow.   I am always waxing lyrical about the need to review your credit control systems and terms of business ….. why not make it your New Year’s resolution to do just that? Call Acquit and we will be happy to help you turn over a new leaf!