Lenders join forces with police to reclaim illegal cars

A new Vehicle Recovery Scheme launched today aims to tackle illegal driving. The scheme is a partnership between the Finance & Leasing Association (FLA), which represents the motor finance industry and regional police authorities. It is designed to enable motor finance companies to reclaim vehicles they own which have been driven illegally by their customers and ultimately seized by the police.

According to the Association of Chief Police Officers (ACPO), the number of illegal vehicles on Britain’s roads is increasing. Last year police seized a record 170,000 uninsured vehicles. Driving without insurance is also a growing concern with an estimated two million uninsured motorists on the road. Uninsured driving nullifies a car financing contract. As a result of this illegal behaviour, motor finance providers may be forced to increase their premiums to other drivers to cover the higher risks. The vehicle recovery scheme could help to reduce the cost of finance for consumers and help companies protect their valuable assets – benefits worth striving for in current economic conditions.

Paul Harrison, Head of Motor Finance at the FLA, said: ”We estimate that our partnership with the police could lead to over 20,000 illegal vehicles being taken off the road. This scheme will make the roads safer for law-abiding drivers and send a clear message to motorists breaking the law that their behaviour will not be tolerated by the police or finance providers. The FLA has been delighted with the positive response to the scheme received from ACPO and regional police authorities.”