Car Logbook ‘Loan’ as Property Deposit answer to Universal Credit?Make Text Bigger
I have mentioned this once or twice in the past, but I’m now giving it serious consideration as the roll out of Universal Credit looms.
I’m not looking for alternative suggestions on how to solve the problem, rather just answers as to how this could be achieved.
I’m talking about car logbook loans as a form of deposit. Granted, it’s not common in this industry, but from what I understand when it is done for a monetary loan a bill of sale is produced and the logbook kept by the lender until the loan is repaid, thus it is possible.
Operating in a very poor area of the country and having mastered the Court system for both getting rid of problem tenants as well as claiming money back from homeowner guarantors (which all of my tenants require), with the introduction of Universal Credit locally at the end of this year, I expect an increase in arrears and problems and thus an increase in guarantors being taken to Court.
It would be nice if I had a short, sharp, shock of a method for dealing with smaller arrears and to get my message across that rent must and will be paid. I know there are services offered by Caridon Landlord Solutions, but I’m wondering if logbook loans are possible and what sort of FCA/Credit Licence might be required.
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