By John Simpson 28 March 2012
Motorists selling cars of which they aren’t the rightful owners is the most widespread kind of car fraud, according to the Finance and Leasing Association (FLA).
Nearly 40% of all car finance frauds in the final quarter of 2011 was down to motorists selling cars they do not own, otherwise known as ‘conversion fraud’.
The stats – revealed by the FLA to promote Car Crime Awareness Week – flagged up a 10% rise in this type of fraud over the same three months in the previous year.
Motorists who buy a car on finance are not the legal owner of that car until they have made all the payments.
Before that point, the finance company owns the car; the driver is just the registered keeper. Selling the car before all payments are made is fraud, plain and simple.
Fraudster
Paul Harrison, the FLA’s Head of Motor Finance, commented: “While it may be tempting to sell your car if you are in financial difficulties, if you do so without speaking to your finance company first then you may be classified as a fraudster.
“It's important that the owner of the car - the finance company - knows who is driving that car at all times, as required under the terms and conditions of a credit agreement.”
Motor finance fraud cases overall fell by 2% in 2011 compared with 2012. The value of motor fraud cases also fell in 2011 to £13.6 million, down by 7% on 2010. There were a total of 197 cases of motor finance fraud in the last quarter of 2011, and 815 over the year as a whole.
Mr Harrison concluded: “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.”
Categories:Fleet news , FLA
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