Wales has left over 30 finance companies facing losses totalling
almost £3 million (€3.8 million).
Details of the supposed scam were revealed to Leasing Life last
month following insolvency proceedings winding up the company Gwent
Fleet Management Ltd (GFM), which is accused of masterminding the
fraud.
Go deeper with GlobalData
The leasing industry has been hit hard in recent months by the
administrations of key customers. The Finance & Leasing
Association has responded to the upheaval by planning the launch of
an asset register.
In this recent alleged fraud, members of the public are said to
have bought cars from a website linked to GFM called
BuyNewCars4Less. The latter is not itself suspected of
malpractice.
Meanwhile, GFM allegedly purchased new cars from various other
dealers who held franchises with the manufacturers.
Where customers paid cash to GFM, the cars were simultaneously
sold to finance companies. Others wrote leases to GFM itself on the
understanding that they were funding a contract hire business.
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By GlobalDataSubsequently consumers, who thought they had purchased their
cars for cash through a dealership, faced bailiffs trying to
repossess them for finance companies whose receivables were in
arrears.
A police investigation is now focused on GFM’s managing
director, Brian John Webb.
Detective Constable David Nisbet of Gwent Police said: “A
criminal investigation is ongoing and we are working closely with
local authority trading standards officers.” Meanwhile disputes
drag on between private car buyers and the finance companies as to
who has good title to the cars.
Melanie Chell, partner at HBJ Gateley Wareing who acts for
several of the finance companies, said that the “outcome of title
claims could vary according to the circumstances in each case”.
In most cases the finance companies hold good title to the cars,
she added.
Andy Thompson
Leasing Life Issue: 181 – October 08
Published for the web: October 1 08 17:3
Last Updated: October 1 08 17:4
