Motor finance fraud cases 'declining'

Date: 10/3/2011

Incidents of motor finance fraud were 14 per cent lower in 2010 than during the preceding year, according to new research.

The Finance and Leasing Association (FLA) has revealed that this is despite more vehicles being sold on finance last year than during 2009.

Overall, the value of motor fraud cases for the 12-month period stood at £14.6 million, with 832 incidents recorded altogether.

It is believed that this decline demonstrates lenders' commitment to tackle the crime.

In addition, motor finance companies were able to recover 40 per cent of all the cars that had been acquired through fraudulent activities, through their own investigations and by teaming up with local police forces.

Paul Harrison, the FLA's Head of Motor Finance, said: "Even if a fraudster manages to acquire a car on credit, our industry has a good vehicle recovery rate. Car fraud funds organised crime and FLA members will continue to support the police by funding the Vehicle Fraud Unit."

Vehicle investigation firm HPI recently urged consumers to always have a HPI check carried out on any used car they are interested in purchasing to establish whether there is any outstanding finance attached to it.

Posted by Mary Treen