Varooma is a trading name of Greenlight Credit Limited. Incepted in 2011, it is a leading provider of Logbook loans (otherwise known as V5 loans). Nowadays Varooma is acting as a broker (an intermediary for another lender), but it used to lend in its own right.
The first thing to note is that Varooma loans are expensive. Their website confirms that by way of representative example, if a customer borrowed £1300 over 18 months, they would repay a whooping £3640 over 77 weeks. That is £2,340 in interest – more than the amount borrowed. This begs the question as to why anyone would take out such finance. The reality, sadly, is that Varooma appears to have targeted “subprime” customers, who often can’t secure more competitive finance.
But here’s the thing – Subprime lenders like Varooma are not exempt from the rules on ensuring a customer can afford the credit they are taking out.
Here at Allegiant we have successfully represented customers in claims against Varooma in arguing that logbook lending was unaffordable.