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How Logbook Loans Work

Varooma
Warning: Late repayments can cause you serious money problems.

For help or advice please go to www.moneyadviceservice.org.uk

Please take time to read and understand our FAQ's to ensure our logbook loan product is suitable for your requirements.

Varooma's logbook loan contracts start from 12 months to a maximum term of 36 months. You are entitled to settle your loan early and there are no penalties or charges to do so.

The maximum APR is 190.3% which includes all fees associated with your loan contract.

In the event there is no willingness to repay your loan, the vehicle you are using as security could be at risk of being repossessed and sold to assist in settling the debt.

How Logbook Loans Work

Before applying for one of our logbook loans, please ensure you meet our initial guidelines as explained on our homepage.

Ok you’re now ready to apply so here’s how it works...

Application stage:

Once you have applied for one of our logbook loans, one of our experienced underwriters will call you in person to go through the application. They will answer any questions you may have, talk you through a quote and work out the most affordable weekly or monthly repayments over a term that is suitable.

Please note, as a responsible lender we only offer loans to people we think can afford to pay them back and never guarantee approval. We assess every application on an individual basis and make sure a Varooma.com loan is right for you.

What you need for your appointment:

After you have been approved in principle by our internal underwriters, they will assign you to a dedicated field representative local to your area who will contact you to arrange a convenient time and date to meet up and complete the paperwork. In most cases this can be arranged the same day.

You will need to have the following documents to hand to ensure this is carried out efficiently:

  • The car you are securing the loan against!
  • The V5 logbook
  • Tax, MOT, Insurance Documents & Spare key (if available)
  • Photo Identification (Passport / Driving License)
  • Utility bill dated within the last 3 months at the address you supplied
  • Last 2 months bank statements
  • Last 2 months pay slips or invoices if you're self employed

The agent will supply you with a copy of the Pre-Contract Credit Information which outlines the exact terms of the contract. We will also supply you with a bill of sale borrower’s information sheet, adequate explanations and FAQ’s.

Please ensure you read and are happy with all aspects of the contract before signing any of the documents.

The documents you will be asked to sign are the Fixed Sum Loan Agreement (credit agreement), Bill of Sale and Income and Expenditure declaration form.

Once this process has been completed, (which usually takes approximately 20 minutes) your representative will contact our dedicated payments team. They will confirm everything has been completed to your satisfaction and then ask for your sort code and account details to process the funds to.

They will also confirm the date of your first payment - If you need to change this you are welcome to do so. The payment will then be issued by Faster Payments directly into your account. This is usually clear in your account within 30 minutes of the transfer, but it can take longer if some banks can’t process transfers or are slow to show a payment on your account.

During your loan term

Congratulations - You are now a Varooma.com customer!

You don’t need to worry about a thing now - we will collect your monthly repayments automatically via your chosen debit card every month on your agreed payment date. We will notify you by text and email 48 hours beforehand to give you a gentle reminder to have the funds available. If the payment fails we will notify you immediately, but do not panic - simply contact us and notify us when we can collect it.

You are welcome to repay early and we encourage our customers to do so. You can also make a partial settlement which will not only save you on interest but also reduce your monthly instalments for the remainder of the term.

Once you are a trusted customer and have kept up repayments on your loan, if you need any additional funds, subject to it being affordable we will consider a top up loan. Simply contact any one of our underwriters to discuss.

If you run into any difficulties during your loan, communication with us is always key to an amicable resolution. We treat all our customers fairly and are always here to help; as long as there is willingness to resolve any issues, we will always work with you. Please note if there is no willingness to repay your loan and we can’t get in touch with you by post, email, phone or text, then your car may be at risk of being recovered to help repay the debt.

Useful contact details during your loan term:

Tel: 0330 440 0101 (free from mobiles and landlines)

Fax: 01932 213051

Email: customerservice@varooma.com

After your loan is complete

As soon as your loan is complete our accounts team are notified and your V5 Logbook (and key if applicable) is sent back to you by recorded mail. This is usually received within 48 hours of the loan being repaid. At this stage the Bill of Sale is also discharged and the legal title of the vehicle passes back to you, leaving you free to do as you please with the car.

Will I be able to borrow again?

Absolutely! Many of our customers use us time and time again, so simply re-apply online and we will contact you straight away to discuss your requirements!

Apply now for one of our loans!

Responsible Lending

We assess all applications carefully and only offer loans to people we believe can afford to pay them back and never guarantee approval.

REPRESENTATIVE EXAMPLE:

Amount of Loan £1000.00. Repayable by 12 monthly repayments of £141.67 or 52 weekly repayments of £32.69
commencing 1 month from the date of the loan. Total Amount Repayable £1700.04.

Rate of Interest 70% per annum flat fixed. Representative 190.3% APR.

Warning: Late repayments can cause you serious money problems. For help or advice please go to www.moneyadviceservice.org.uk