In the aftermath of the rigging of Libor and amid the ongoing PPI scandal – that is predicted to be the largest mis-selling scandal in British financial foundation – a fifth of Brits said they’ve lost faith in the huge banks.
Observing a lack of transparency and also the continued deception of loyal customers, Barclays, which will be Britain’s second creditor, confessed back in July that the people’s confidence in banks had “been decimated and has to be rebuilt”.
This type of banking culture has unsurprisingly put people off going for a conventional high street loan – as well as people who do try to get credit from high street lenders are neglecting to accomplish this because of the exceptionally hard lending standards.
The slow economy has set banks on high alert, meaning that only people having a pristine credit rating stand a real prospect of getting a loan in acceptable prices.
Consumers are therefore increasingly seeking alternate way of finance. Same-day logbook loans have exploded in popularity since the start of the downturn.
“More than 30,000 logbook loans have been listed each year and this figure is climbing,” Kristian Welch, customer manager for vehicle data check company HPI, stated earlier this year.
“People are just finding it too hard to get traditional fund deals in the lender, and consequently into a logbook loan has become more and more common.”
The business is booming as a result of the soaring popularity of log book loan online, and with Christmas just around the corner, most businesses are bracing themselves for a wave of applications.
Which exactly are logbook loans?
They’re secured from the car, but nevertheless let you drive your car or truck. Based upon the value of your car or truck, you could borrow huge amounts of money, which may reach up to 50,000.
Logbook loans cost a relatively modest amount of interest, typically 90 percent cheaper than the amount charged by payday lenders, indicating them as a more financially viable alternative.