DVLA and FLA agree vehicle recovery scheme for financed cars

The Driver and Vehicle Licencing Agency (DVLA) and the Finance & Leasing Association (FLA) have launched a vehicle recovery scheme.

This ground breaking new agreement enables finance companies to rescue financed cars that have been impounded by the DVLA because the driver has no road tax (driving a car that is subject to a finance agreement without Vehicle Excise Duty (VED) is a breach of the finance contract).

This new scheme builds on the successful scheme the FLA already has in place with the majority of police forces in England, Scotland and Wales which enables the recovery of cars impounded by the police.

The scheme starting today extends to DVLA-impounded cars.

With more than 1.25 million new and used cars bought on finance each year, co-ordinated action by the DVLA and finance companies will deliver significant road safety benefits as well as helping to keep the cost of finance affordable for law-abiding motorists. 

Paul Harrison, Head of Motor Finance at the FLA, said: "Our new vehicle recovery scheme with the DVLA will allow finance companies to be able to collect cars that have been illegally driven by their customers. This will help make our roads safer for law-abiding motorists and will also mean that finance companies will be able to collect their cars before they go to the crusher or are sold at auction."

The FLA predicts that approximately 1,000 illegal cars worth approximately £5.5 million will be identified every year because of this new scheme.