Consultations CTSI HaS ITS SaY Some of the institutes contributions to government policy debate Replacing Bills of Sale: a new Goods Mortgages Bill Replacing Bills of Sale: a new Goods Mortgages Bill Law Commission, august 2017 Having actively campaigned on this matter since 1985, CTSI welcomes legislation proposing to end years of consumer exploitation through avoidance of the Bills of Sale Act, as well as the opportunity to comment upon the draft Mortgage Bill as it stands so far. The long campaign against Bills of Sale originated from their extensive use in the sale of second-hand motor vehicles in the sub-prime market. This arose as a consequence of the Hire Purchase Act 1964, allowing the retention of title of the secured goods to pass in specified circumstances. CTSI has chosen to consider the consultation from the vehicle mortgage perspective, to see how this can mitigate against the widespread abuse of this law, which prompted CTSIs campaign. The institutes concern is for consumer protection, in particular the innocent private buyer. The Hire Purchase Act 1964 created a new title for consumer car buyers, who were unaware of outstanding HP finance on their new car as, in 1964, consumers would have found it very difficult to establish whether such outstanding finance existed. The Act led to a rise in the use of Bills of Sale (BoS), as a safeguard against loss of title to the lender provided by the BoS Acts, but running a major financing scheme (hire purchase) alongside a minor one (BoS) may well have caused public confusion. This situation will be improved, though, if private car buyers can access credit history for their intended purchase. The mandatory registration of vehicles with an approved Asset Registry is the best way forward. However, as stated in the consultation, the BoS Acts were very onerous and harsh on lenders if they failed to register any Bill correctly with the High Court. It appears that the Draft Bill is also harsh on lenders who do not register Goods Mortgages in whatever way the missing clauses suggest. Lead officer: David Sanders For more details and to contribute to consultations such as these, visit www.tradingstandards.uk Credits Images: AdrianHancu To share this page, in the toolbar click on You might also like CTSI has its say August 2017