Vehicle history information provider HPI has urged used car buyers to beware of vehicles with undisclosed Bill of Sale credit agreements.
The organisation said this issue remains the number one threat to used car buyers, with its database recording over 30,000 loans each year and one in four cars checked still on a finance agreement.
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The announcement follows a report by the FLA last month, which found this type of fraud, known as conversion fraud, to be the third most common in motor finance, although overall fraud fell by 6%.
Philip Peace, HPIs commercial operations director, said this kind of credit agreement, secured against a vehicle, has become more popular as tightened lending criteria make it more difficult to obtain conventional finance.
He said recent findings confirmed that despite continued steps by the Government, the industry and the media [including the requirement in the CCTA Code of Practice to register all loans with HPI], used car buyers continue to fall foul of log book loan fraudsters.
HPI runs a database of all UK road registered vehicle descriptions and histories, and also offers used car buyers who use its checking system a financial guarantee in case of logbook loan fraud.
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