header-logo header-logo

Home Login E-newsletter About us

Securing loans on goods

© Copyright LexisNexis 2025. All Rights Reserved.
27 November 2015 / Fan Yang
Issue: 7678 / Categories: Features , Commercial
printer mail-detail
nlj_7678_yan

Should individuals be given more protection, asks Fan Yang

If an individual wants to use their existing goods as security for a loan, they need to use two Victorian pieces of legislation: the Bills of Sale Act 1878 and the Bills of Sale Act (1878) Amendment Act 1882. These complex and archaic statutes leave both borrowers and potential purchasers in a very insecure position. The Law Commission is currently consulting on whether to repeal the Bills of Sale Acts and replace them with a new “Goods Mortgages Act”.

Bills of sale

A bill of sale can be taken over any goods, with examples being fine wine, valuable paintings and even a herd of cows. However, by far the most common example in modern times is the logbook loan.

When a borrower takes out a logbook loan, they transfer ownership of their existing car, van or motorcycle to the lender. If the borrower keeps up the repayments, they may keep using the vehicle. But if the borrower defaults, the lender can seize the vehicle and

If you are not a subscriber, subscribe now to read this content
If you are already a subscriber sign in
...or Register for two weeks' free access to subscriber content

MOVERS & SHAKERS

Read All
Sponsored by
Bloomsbury Square Employment Law—Donna Clancy

Bloomsbury Square Employment Law—Donna Clancy

Employment law team strengthened with partner appointment

mfg Solicitors—Matt Smith

mfg Solicitors—Matt Smith

Corporate solicitor joins as partner in Birmingham

Freeths—Joe Lythgoe

Freeths—Joe Lythgoe

Corporate director with expertise in creative industries joins mergers and acquisitions team

NEWS
Read All
NLJ this week: Alarm bells over Mazur
The High Court’s decision in Mazur v Charles Russell Speechlys has thrown the careers of experienced CILEX litigators into jeopardy, warns Fred Philpott of Gough Square Chambers in NLJ this week
NLJ this week: Jury trial & a constitutional illusion
Sir Brian Leveson’s claim that there is ‘no right to jury trial’ erects a constitutional straw man, argues Professor Graham Zellick KC in NLJ this week. He argues that Leveson dismantles a position almost no-one truly holds, and thereby obscures the deeper issue: the jury’s place within the UK’s constitutional tradition
NLJ this week: The rise—and risks—of going private
Why have private prosecutions surged despite limited data? Niall Hearty of Rahman Ravelli explores their rise in this week's NLJ 
NLJ this week: Human rights disputes push courts to redefine their role
The public law team at Herbert Smith Freehills Kramer surveys significant recent human rights and judicial review rulings in this week's NLJ
NLJ this week: Debarment orders—shortcut or minefield?
In this week's NLJ, Mary Young of Kingsley Napley examines how debarring orders, while attractive to claimants seeking swift resolution, can complicate trials—most notably in fraud cases requiring ‘particularly cogent’ proof
Copyright © 2025 LexisNexis
back-to-top-scroll