LOGBOOK LOANS

Motion Text

That this House notes with concern the practice of offering short-term loans at extortionate interest rates, often around 400 per cent. through a conditional bill of sale, sometimes known as logbook loans; further notes that lenders of this type of loan make provisions in their loan agreements for the use of improper intimidation tactics should the debtor fall behind in their repayments; congratulates the Government and consumer watchdogs for highlighting the dangers of such loan agreements; and urges the Government to bring forward legislative proposals for the regulation of this industry and to bring an end to bad practice.