How To Avoid Excess Costs & Charges

How To Avoid Costs

How To Avoid Costs

In this article we’ll dispel another myth that logbook loans are excessively expensive and costly and how you can make savings with your loan. We should make it very clear from the outset that logbook loans should only be used for short term borrowings and not for your long-term borrowing needs.  If used in this manner V5 Solutions logbook loans can be a useful and cost effective way to borrow money over a short term.

We’ve already explained the potential costs and charges that could be incurred and these are all easily avoided if you follow these very simple rules.

Paying Promptly

This is the easiest way to ensure you don’t incur any late payment charges. At V5 Solutions we offer you a variety of methods to make your payments quickly and easily, to ensure they are received in good time.

The simplest repayment method is by Standing Order. We can set this up with you at your loan appointment and it is an automatic payment from your bank account to ours on a specific day each week. This will ensure your payments are made on a day or date when you know there will be funds in your account and there will be no risk of you forgetting to make the payment. We can set you up on a Standing Order payment scheme at any time, just give us a call on 01603615191.

We issue each customer with a NatWest payment book to make payments directly into NatWest Bank. This gives you more flexibility as you can pay on any day of the week and it is useful if you have cash on you and are regularly making payments into your bank anyway. You must remember to make the payments each week and it would be a go idea to note this down in your Diary and Calendar.

We also accept Debit Card payments over the phone. However there is a 50p charge for each payment made and we don’t recommend this for your normal weekly payments. We offer the service primarily for customers that might have missed a payment and need to make an urgent payment to us to avoid incurring arrears.

You can also make a secure Debit Card payment to us via the  MyV5 page on our website. There is no charge for these payments and for your convenience you can make them at any time of the day or night. You should remember that your payments should be made in accordance with your loan agreement to ensure you don’t incur any arrears or late payment charges.

 Settle Early

By settling your loan early you can make significant savings on your loan as you will receive a discount on the loan repayments. Our loans are very flexible and you have several options available to settle our loan early. You can settle your loan in full at any time by making a one off early settlement payment. You can contact us at any time and request a settlement figure and the sooner you can settle the agreement the less interest you will pay and the larger the savings are.

 Over paying

You can overpay your logbook loan whenever you have additional money available. This is a great way to settle your loan if you have extra cash available each week or month, but you can’t afford the whole settlement amount in one payment.

Partial Early Settlements

This is an efficient way that allows you to settle your loan by making partial early settlements. It is best used by over paying your loan account with regular or one off over-payments. To really benefit from making these over-payments you must ensure that your loan account is up to date at all times.

Voluntary Surrender

If you are experiencing extreme financial difficulties you may wish to consider surrendering the vehicle to us. We will sell the vehicle and settle the account for you and any excess monies raised will be paid back to you. This avoids incurring any late payment and repossession charges. You must ensure the vehicle is in good condition to avoid incurring repair fees to make the vehicle sell-able.

Keep In Contact

If you encounter any financial difficulties during your loan term that might affect the loan repayments you should contact us as soon as possible and let us know. We will work with you to ensure you don’t incur unnecessary costs or charges while ensuring you make affordable repayments on your loan agreement. You can contact us by email or phone 6 days per week and we will do our best to work with you.

It is crucially important that you maintain any payment arrangements that we agree with you and if you are unable to maintain these payments you should contact us as soon as possible.

Address & Contact Details

As our agreements can be 18 months or longer in duration, there is a chance that you might move address or change your contact numbers during that time. As with all your other Utilities you should update us as well. If we have to send you payment reminders and these are not received, because you have not informed us that you have moved, then you may incur unnecessary charges and fees for tracing you. You can update us with your new address details by calling us on 01603615191.

Remember our V5 Solutions logbook loans should be used responsibly for your short term borrowing needs and you can make significant savings if you are able to settle your logbook loan early.

Logbook Loans vs Payday Loans

Female with cashThe downturn in the economy and the bank’s reluctance to lend to individuals has left many people with damaged credit files. This has led many people to seek alternative lenders offering credit to people with credit problems in the form of short-term loans, two of the most popular being logbook loans and payday loans.

These loans have risen in popularity predominantly over the past 5 or so years because applications are not subject to stringent credit checks and so have high acceptance rates for being approved a loan.  There are some exceptions though. You will not be eligible for either if you are:

  • Bankrupt;
  • In an IVA;
  • In a Debt Management Plan.

Although these loans have very high interest rates they are available to almost everyone and so may be helpful if used as a short term solution to any financial problems you may be having.

So, if you are in the market for an alternative loan, are you better off taking out a payday loan or a logbook loan?

Payday and logbook loans each have their own distinct advantages and disadvantages which are discussed below.

The main advantage of both payday loans and logbook loans is their convenience and the speed at which they are processed. Most alternative lenders operate online and so decisions and payouts are generally processed instantly. Payday loans are probably the more accessible of the two as they are unsecured and so do not require any sort of collateral/security with which to secure the loan as with a logbook loan.

Logbook loans are strictly for vehicle owners and in order to be accepted, you need to own a vehicle and be in possession of the V5 Registration Certificate, also called the logbook. In addition to owning the vehicle, it must be free of finance and you must have a regular income each month to prove to the lender that you can afford the loan repayments. This is the lenders commitment to Responsible Lending and can usually be seen by their Consumer Credit Trade Association Membership details on their website. This is an encouraging sign that the lenders are being more mindful of their customers and ensuring that they do not get into unmanageable debts and risk their vehicles.

In the case of logbook loans, as the loan is secured against your vehicle you can often expect higher borrowing limits compared to payday loans. The amount that you can borrow is dependant upon the value of your car and so if your car is worth less than around £500 then a payday loan may be a better option as no logbook loan lenders will offer loans on vehicles of this value. However if you have a high value vehicle you could easily borrow in excess of £3000, and up to £50,000 in some cases, depending on your income and loan affordability. No payday lender will offer these loans values.

Although both products are convenient, one major disadvantage is that they have high annual percentage rates (APR) and so should never be considered as a long term solution to debt problems. As logbook loans are secured on your vehicle it could be recovered if you are unable to maintain the loan repayments. This could adversely impact on your life and work so you must proceed carefully and ensure you can afford the loan repayments before committing to the loan.

Payday loans differ from logbook loans in their repayments. Logbook loans are typically instalment loans whereas payday loans are often single payment loans. A logbook loan will typically be over 18, 24 or 36 months while a payday loan is a 1 month loan. It is often easier and more manageable to repay a small amount each week or month in the case of a logbook loan, rather than the whole amount plus interest in one payment in the case of a payday loan.

Overall, both logbook loans and payday loans are a useful product for anyone that has an urgent need for a short term loan, particularly anyone with a poor credit history and unable to borrow from their bank. It is important that you determine exactly how much you need to borrow and work out which loan is best for you. But remember, these loans are only short term and are likely to add to any long term debt problems if not used correctly.

Please see our Representative Example at the bottom of the page.

V5 Solutions Logbook Loan Costs

Signing Loan Agreement

Signing Loan Agreement

In addition to the normal loan repayment costs, which you can see on our How Our Loans Work page, there are some additional costs that a client may incur during the term of their loan with us. We must stress that this are not mandatory costs and they are easily avoided as long as you maintain the regular repayments as required.

Late Payment Fees – £12

When you take out a V5 Solutions logbook loan, or any loan for that matter, you will be required to make your loan repayments in accordance with your loan agreement. Our loans are all structured for weekly repayment and we have numerous simple and easy methods for you to make the payment to us. In some exceptional circumstances we allow clients to make their loan repayments on a monthly basis but these payments must be in advance to ensure your loan account is never in arrears.

Your first weekly loan repayment should be paid 7 days after your loan is signed. If your payment is not received on this date then we will make several attempts to contact you by phone and email to establish why the payment was not made and to urge you to make the payment immediately by Debit Card or directly into our bank with the supplied NatWest payment book. If your payment is not received by the time your second instalment is due then you will be sent a late payment letter and you will incur the £12 late payment fee.

If your account is in arrears and you make up all the missed payments and set up a regular Standing Order for the remainder of the loan term then we will remove the late payment fees you have incurred during the course of those arrears.

We will continue to make attempts to contact you if your account remains unpaid (and in arrears) to establish the loan repayments. If we are unable to contact you and collect your contractual loan repayments then your account will continue to incur late payment fees with each missed payment. After 21 days of non payment you will be served with a Default Notice in accordance with the Consumer Credit Act 1974. You will now be required to settle all the outstanding arrears in full within 14 days or the account will be Terminated and you will be required to settle the account in full.

Telephone Call Costs – £12

If your account is unpaid and in arrears we will make numerous attempts to contact you to establish contact and collect payment from you. If despite all our attempts we are unable to contact you and collect payment then you will incur a £12 charge on your loan account.  If we manage to contact you and collect payment then you will not be charged the £12 fee. You will only incur one charge per week.

Vehicle Recovery Costs

If your account remains unpaid and we are unable to collect any repayments from you, or come to an arrangement to collect reasonable payments from you, then your vehicle will be recovered. Please note that V5 Solutions only undertakes the recovery of vehicles as a last resort after all other attempts have failed. The cost of recovering a vehicle starts at £288 and could be higher depending on the vehicle and its circumstances.

Following the recovery and sale of the vehicle you will be liable for any resulting shortfalls. You will also receive any excess monies raised from the sale of the vehicle.

It is imperative therefore that you maintain your loan repayments for the duration of the loan agreement. If you are unfortunate enough to encounter some financial difficulties during the term of the loan you should contact us as soon as you can and let us know. We will always do our utmost to work with you to ensure we can collect reasonable repayments and ensure your retain the vehicle so you can continue to get to and from work.

Please see our Representative Example at the bottom of the page

V5 Solutions at Cash Converters Norwich

We are delighted to announce that you can apply for a V5 Solutions logbook loan through your local Cash Converters store. Cash Converters Norwich have a network of three retail shops: Norwich City Centre, Bowthorpe and Heartsease.

Cash Converters offer a range of Financial Services including Pawnbroking, Buybacks, Personal Advance Loans, Cheque Cashing and Western Union Money Transfer. Cash Converters Norwich have been successfully recommending V5 Solutions logbook loans for  over 10 years to thousands of satisfied customers.

To apply for a V5 Solutions logbook loan at your local Cash Converter store simply pop instore and the friendly staff will process the application for you. Alternatively you can apply online and we will meet you at your most convenient store within an hour to complete the loan and issue your your loan payment. All the stores have excellent facilities and parking is readily available.

To apply for a no credit check logbook loan through your local Cash Converter store simply apply online or call your local store below.

  • Cash Converters Norwich – St. Benedidcts Street. 01603 622611
  • Cash Converters Norwich – Bowthorpe – 01603 740902
  • Cash Converters Norwich -Hearsease – 01603 438738

 

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Please see our Representative Example at the bottom of the page.

V5 Solutions At The Cash Shop

The Cash Shop LogoWe are delighted to announce that you can now apply for a V5 Solutions loan though The Cash Shop network of shops. The Cash Shop are a well established High Street network of shops offering a whole range of financial services including buying and selling of consumer electronics, Cheque Cashing, Pawnbroking and personal loans.

The Cash Shop share our vision for customer care and responsible lending and we are delighted to be working with them to provide another dimension to their rich portfolio of services.

The Cash Shop have a network of 9 stores in:

  • Bulwell Town Centre, Nottingham
  • Nottingham City Centre
  • Leicester City Centre
  • Hull City Centre
  • Stockport City Centre
  • Leeds City Centre
  • Doncaster City Centre
  • Sheffield City Centre
  • Peterborough City Centre

To apply for a V5 Solutions loan at your local Cash Shop simply simply go instore and their friendly staff will guide you through the process. You can find your local Cash Shop here.

Logbook Loans For The Self Employed

The 2008 Credit Crunch and resulting UK Recession has led to unprecedented numbers of job cuts throughout all sectors of the UK Economy. This has led to a rise of nearly 1Million Self Employed Entrepreneurs since 2006 looking to forge a living for themselves despite the decline in the economy.

Logbook loan for self employed cleaner

Logbook loan for self employed cleaner

However strict limits imposed by the banks has limited the availability of loans for the Self Employed. The Banks require extensive Credit Checks and often 2-3 years worth of Accounts before considering and individual for a loan. These loans often take days or weeks before they are approved which can be very frustrating and often are too slow.

We take a different view to lending to the Self Employed than the banks do. The first most important difference is that we don’t carry out any credit checks. We understand that some people might have a less than perfect credit score and we believe that this shouldn’t affect their ability to secure a logbook loan with V5 Solutions against their vehicle. All we insist on is that you are not Bankrupt, in an IVA or Debt Management Plan.

The second big difference is that we don’t require your last 2 or 3 years Accounts. If you are a new startup then you won’t have these records and we don’t believe that you should be penalised for this. Instead, all we require is to see proof of your income over the last 3 months to ensure you can comfortably afford the repayment on your loan.

We understand that most self employed entrepreneurs’ income will probably be weekly, so we offer weekly loan repayments as well. This is to make it easier for you to budget and repay your V5 Solutions logbook loan without a hitch.

We offer a range of repayment methods to cover all situations:

  • Standing Order – Automatically collected each week from your bank account. Ideal if you are very busy and have regular payments into your bank account.
  • Bank Payment Book – Manual payments into our Bank in cash. Ideal if you are regularly depositing cash into your bank.
  • Debit Card – Over the phone and online. Ideal if you have a Debit or Prepaid Cash Card and want to make additional payments at anytime of the day or night.

We’d love to work with you and help be a part of your success. So if you need a simple and fast, no credit check logbook loan on your van or car simply apply right above or give us a call on 01603615191 during normal business hours, Monday – Saturday.

Please see our Representative Example at the bottom of the page.