OFT warns of £3million car-selling scam

The OFT is today warning consumers about vehicle matching scams which cost UK consumers nearly £3 million every year.

Vehicle matching scams work by approaching consumers selling their cars and promising falsely to match them with definite buyers. Typically, the seller is cold-called by phone once they have placed an advert in a magazine, on a website or in a newspaper. They are promised that a buyer exists for their vehicle but are required to pay a matcher's fee up front before the sale is completed. However in many cases there is no buyer, the contract with the vehicle matcher cannot be cancelled, and any money paid is lost.

Last year over 1600 private sellers of second hand cars complained to advice service Consumer Direct about the practice, losing between £80 and £99 each, but the true number of victims is thought to be much larger.

The OFT has co-ordinated the sharing of intelligence between different enforcement agencies to target action against traders engaged in unfair commercial practices, assisted on enforcement action, and has organized a day of action with the police, local authority Trading Standards Services and consumer bodies to crack down on the car matching scammers. As part of the action TSS officers are also due to carry out inspections.

The OFT is also working with online and print motoring publications and websites who are members of the Vehicle Safe Trading Advisory Group - including Autotrader, Exchange and Mart, eBay, Pistonheads and Motors.co.uk to put in place clear and prominent warnings for consumers who put their cars up for sale about these scams. The UK European Consumer Centre, European Consumer Centre, Dublin, and Which? are also supporting the campaign

Mike Haley, OFT Director of Consumer Protection, said: ‘Time is up for rogue traders who attempt to cheat sellers with false promises of a guaranteed buyer for their cars. We are working with the industry and enforcement partners across the UK to crack down on scammers who are preying on consumers during the economic downturn.'

Motor trade lead officer Peter Stratton, Trading Standards Institute, said: 'High pressure selling alongside cold calling makes this a very successful scam, often leaving the consumer with very little chance of obtaining redress. Partners are working together to help educate and protect consumers in respect of these rogues.'