“It is extremely positive to see that following persistent lobbying efforts, current legislation on logbook loans will be replaced with a new act which will ensure more protection for both consumers and businesses”, said Sue Robinson, director of NFDA and NAMA, commenting on the Goods Mortgages Bill included in today’s Queen’s Speech.
The National Franchised Dealers Association (NFDA) and the National Association of Motor Auctions (NAMA) have been campaigning jointly to change current legislation on logbook loans for many years.
Today’s Queen Speech confirmed that the current Bills of Sale Acts will be replaced with a new Goods Mortgage Act which will enable individuals to use their existing goods as security of a loan, while retaining possession of the goods.
As outlined in the Queen’s Speech, the main elements of the Bill are:
- Repealing the Victorian-era Bills of Sale Acts and replacing them with a Goods Mortgage Act which enables individuals to use their existing goods (such as a vehicle) as security for a loan, while retaining possession of the goods.
- Increasing protection for borrowers who get into financial difficulty.
- Helping borrowers in financial difficulty by giving them the right to voluntary termination by handing over their vehicle or other goods to the lender.
- Providing protection for innocent third parties who buy a vehicle subject to a logbook loan that may be at risk of repossession.
Robinson continued, “Logbook loans represent an issue for our industry as they do not have to be recorded on the vehicle data registers, meaning that vehicles can be easily sold without the clear title.
“The new act will bring more protection for consumers and businesses, as vehicles will be properly registered on the credit agencies databases.
“We are pleased to see that the Government confirmed that it will consider further recommendations on the issue from the Law Commission, which NFDA and NAMA fully endorse.”
NOTES TO EDITORS:
Gabriele Severini, NFDA Communications Officer
Tel: 020 7307 3423
Mob: 07880 039897
Press Office direct line: 020 7307 3422
Press Office fax: 020 7307 3406
Web: www.rmif.co.uk Email: firstname.lastname@example.org
The Retail Motor Industry represents the interests of operators in England, Wales, Northern Ireland and the Isle of Man providing sales and services to motorists and businesses. The RMI has a formal association with the independent Scottish Motor Trade Association which represents the retail motor industry in Scotland.