Action by the DVLA to remove previous keeper information from V5 log books could bring increased fraud on used vehicles, according to Cap HPI.

Although the V5C has to date included ‘The Previous Registered Keeper’ details, these have now been removed in line with the switch to GDPR legislation.

Intended to protect consumers’ personal data, the move could have a knock-on effect in terms of fraud, which could impact across the dealer network and have potentially wider repercussions for the whole automotive industry, according to Cap.

The issue lies with mileage investigations, which are carried out by dealers as part of a due diligence process prior to purchase to ensure they avoid buying a vehicle with a tampered odometer. The DVLA’s move to limit previous keeper information on the V5c to only the current keeper means that where a full mileage investigation is required, Cap HPI and all other suppliers to the industry must now contact DVLA for the previous keeper details as part of the investigation process, which the DVLA charges for.

Wendy Swaine, head of retail at Cap HPI, said: “With the potential of increased cost to dealers, there is a risk that some may opt to forego a mileage investigation, opening themselves up to accidentally making a risky purchase, and then potentially being hit by the reputational damage to their business when the fraud is uncovered. It’s potentially a double whammy for dealers, the industry and the consumer, which is why we are urging the DVLA to look at the wider ramifications.”

In response, a DVLA spokesperson said: “There is no reason why removing the previous keeper from the V5C should result in an increase in fraud involving used vehicles.

“We believe the processes in place strike the correct balance between protecting the personal data of our customers while maintaining the availability of information about vehicles to those with a legitimate right to receive it.”

Source: Fleet World