Selling a vehicle that still belongs to the car finance company is the most widespread form of motor finance fraud, according to statistics unveiled by the Finance and Leasing Association (FLA).
Coinciding with Car Crime Awareness Week in the UK, individuals considering the purchase of a new vehicle have been warned of the growing danger of fraudulent behaviour in the used car sector.
“As part of this week’s third annual Car Crime Awareness campaign, we are telling car finance customers about their rights and how to protect themselves against being the victim of fraud – or inadvertently committing fraud,” said Paul Harrison, the FLA’s head of motor finance.
The level of fraudulent car sales in the UK last year has been shown to be in excess of £13 million, down by 7% compared to 2010. During the final quarter of 2011 there were 196 instances of car finance fraud, bringing the figure for the year to 815.
‘Conversion fraud’ – where motorists sell cars they do not own – accounted for almost 40% of all car finance frauds in the last three months of 2011. This represented around a 10% increase in this type of fraud over the same period in the previous year.
Finance companies that belong to the FLA blocked close to 7,400 cases of attempted fraud last year. This means they prevented fraudulent deals that would have amounted to £95 million – which helps to keep finance charges affordable for honest car buyers.
Commenting on the subject, Mr. Harrison said: “Checks are available for a fraction of the total cost of a car and provide reassurance that the car is what the seller says it is.”
Speak to the motor trade car insurance team at Plan Insurance for an expert, professional service and a choice of cover from the UK’s leading insurance brokers.
Selling a vehicle that still belongs to the car finance company is the most widespread form of auto finance fraud, according to statistics unveiled by the Finance and Leasing Association (FLA).
Coinciding with Car Crime Awareness Week in the UK, individuals considering the purchase of a new vehicle have been warned of the growing danger of fraudulent behaviour in the used car sector.
“As part of this week’s third annual Car Crime Awareness campaign, we are telling car finance customers about their rights and how to protect themselves against being the victim of fraud – or inadvertently committing fraud,” said Paul Harrison, the FLA’s head of motor finance.
The level of fraudulent car sales in the UK last year has been shown to be in excess of £13 million, down by 7% compared to 2010. During the final quarter of 2011 there were 196 instances of car finance fraud, bringing the figure for the year to 815.
‘Conversion fraud’ – where motorists sell cars they do not own – accounted for almost 40% of all car finance frauds in the last three months of 2011. This represented around a 10% increase in this type of fraud over the same period in the previous year.
Finance companies that belong to the FLA blocked close to 7,400 cases of attempted fraud last year. This means they prevented fraudulent deals that would have amounted to £95 million – which helps to keep finance charges affordable for honest car buyers.
Commenting on the subject, Mr. Harrison said: “Checks are available for a fraction of the total cost of a car and provide reassurance that the car is what the seller says it is.”
Sales manager at Trade Plan Insurance Dan Dove recommends that, “Any motor trader concerned that a vehicle they purchase in good faith could be taken by the Police and returned to the rightful owner should consider taking out a wrongful conversion policy. It’s unlikely they will need to use the cover if they run the full registration checks for outstanding HPI and against the stolen vehicle register but you never know, that’s the point of insurance. If a vehicle along with it’s documentation has been obtained by deception and a motor trader subsequently buys it, that trader could be out of pocket by a large sum unless they have the appropriate insurance.”
Speak to the expert insurance brokers at Trade Plan Insurance for a professional service and a choice of cover from the UK’s leading motor trade insurers.
