Hello zekwil and a very warm welcome to the DebtWizard IVA and debt help forum.
I would consider replying to the insurance company and asking them not to pay the Log Book loan company as you are going to contact the Financial Ombudsman Service (FOS) for further advice.
It will be a good idea to mention the points to the FOS about the affordability issue, using your son's DLA, and te registration name on the V%.
The FOS are free for you to use and have the power to reverse consumer credit agreements if they though appropriate.
The usual course would be to raise a complaint with the Log Book loan company and give them eight weeks to sort out the complaint, after thus period you are then able to fo to the FOS. Because of the nature of the issue I would go straight to the FOS and ask their guidance.Financial Ombudsman Service (FOS)
The official independent body in settling complaints between consumers and businesses providing financial services.
Enquiries and consumer helpline
Monday to Friday – 8am to 8pm
Saturday – 9am to 1pm
0800 023 4 567 calls to this number are now free on mobile phones and landlines
0300 123 9 123 calls to this number cost no more than calls to 01 and 02 numbers
These numbers may not be available from outside the UK – so please call us from abroad on +44 20 7964 0500.
They will be happy to phone you back, if you're worried about the cost of calling them.
You can also text us on 07860 027 586 and they will call you back. They ask that you do not send any account numbers or bank details in your text as they will sort that out later. And if you feel you need to speak to them more urgently, it's probably best to call us so they can help you there and then.www.financial-ombudsman.org.uk
Trust this helps,
Best wishes, Mike