Logbook loans are usually secured contracts on cars, although caravans, motorbikes, vans etc can qualify depending on the provider. The borrower signs a standard credit agreement and a Bill of Sale form that transfers ownership during the time that the loan contract is live. The agreement ties in with 2 Victorian pieces of legislation: The Bills of Sale Act 1878 and the Bills of Sale Act (1878) Amendment Act 1882 (these apply to England and Wales). There is a variant in Northern Ireland, but not in Scotland where a hire purchase agreement would typically be put in place. The sector name comes from the V5C registration document (the logbook) that is handed over to the lender.
Back in 2014, the FCA estimated that this industry was valued between £59 and £76 million. This was a big year when 52,580 bill of sales were recorded. This tally was 30,124 in 2016 that shows that there has been a heavy decline in recent years, but this remains a booming market for the dominant players. The oldest brand (Mobile Money) who operates through various trading names is one and the other is Loans 2 Go who are the retail powerhouse with 55+ branches. They became a major force when they joined forces with Hermes Property Services in January 2015. Hermes had taken over the Logbook Loans brand that was the original market leader ran by former footballer (Iain Shearer).