Press Release
New FLA/Police partnership to reclaim illegal vehicles
21 April 2009
Regional police authorities at an ACPO conference will today hear about a new Vehicle Recovery Scheme to be launched next month. The scheme - a partnership between the Finance & Leasing Association, which represents the motor finance industry, and regional police authorities - will enable motor finance companies to reclaim illegal vehicles seized by the police.
A police officer seizing a vehicle(1) will run a background check to see whether an FLA member has an outstanding interest as the legal owner of the vehicle. The finance company will be contacted to take possession of the vehicle if the finance customer (registered keeper) does not collect it, repay all charges owed and ensure it is road legal. The Vehicle Recovery Scheme will be available from 1 May.
The number of illegal vehicles on Britain's roads is increasing. ACPO says that last year police seized a record 170,000 uninsured vehicles. Driving without insurance nullifies a car financing contract. As a result of this illegal activity, finance providers may have to increase their premiums so other motorists are asked to cover the additional risk.
Motor finance providers are under pressure to save costs. Statistics released this month by the Finance and Leasing Association show the impact of the recession:
· Consumers purchased 21% fewer new cars and 21% fewer used cars with dealer finance in February 2009 compared with February 2008.
· Consumer leasing of new cars fell 36% by value compared with February 2008, but Personal Contract Purchase deals were up 3% by value.
Paul Harrison, Head of Motor Finance at the FLA, will be speaking at the ACPO conference. He said:
"Our latest figures show that dealer finance remains the most popular way to fund a new car, with 462,000 people buying their car on finance in the last 12 months. Our partnership with the police will make the roads safer for drivers by removing cars that have been obtained or are being driven unlawfully, as well as recovering finance companies valuable assets at a time when the motor industry is facing many challenges."
The ACPO lead on vehicle recovery, Superintendent Mick Doyle of Thames Valley Police, said:
"There is a real and growing danger from cars being driven illegally, as well as a high cost to motorists. Uninsured and untraced drivers kill around 160 each year. I am delighted to be working with the FLA to help get cars driven unlawfully off Britain's roads."
1 Vehicles seized under Section 165A of the Road Traffic Act 1998 (Serious Organised Crime and Police Act 2005)
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