FLA Vehicle Recovery Scheme

The two million drivers who go uninsured on UK roads every year cost each law-abiding motorist around £40 a year in increased insurance costs. Many uninsured drivers also drive without a valid licence.

The FLA’s Vehicle Recovery Scheme is a partnership between finance companies and regional police authorities. The scheme involves the police running a background check on vehicles seized for traffic offences. Finance companies then receive a notification if the seized vehicle is found to have outstanding finance.

The pilot scheme was launched on 1 May 2009, and the full Scheme was launched on 1 September 2009 with half of the Police forces in England and Wales operating the scheme. The Association of Chief Police Officers in Scotland and the FLA launched a similar scheme in Scotland on 1 October after a successful pilot scheme.

It ensures that where a vehicle has been seized by the police for a road traffic offence, a check is carried out to determine whether it is subject to an outstanding finance agreement. If a vehicle is on finance, the finance provider – the legal owner – is alerted that the vehicle has been detained by the police and they have the opportunity to recover it.  

According to the Association of Chief Police Officers, 170,000 vehicles were seized by the police in 2008. More than 80% were seized for driving without insurance or a valid licence, so the FLA scheme focuses very much on these offences. A pilot of the scheme in 2008 showed that 12% of vehicles seized by the police were on finance - a significant proportion.

In the first six months of full operation, the Vehicle Recovery Scheme allowed motor finance providers to recover cars worth £2.3 million. Lenders have received more than 200 notifications of seized cars each month. 53% of cars are released back to the customer, 18% are held by the police or recovered by insurers and the remaining 29% are recovered by the finance companies themselves.  

The scheme delivers major benefits for the general public, cutting insurance costs and improving road safety. It benefits the police by removing vehicles from persistent offenders and helps finance companies by returning their valuable assets back to them. 

The scheme is another example of the motor finance industry working in partnership with the police to tackle a common problem. See also “Working with the police”.