The motor finance industry’s
specialist police unit is to lose government funding as part of
ongoing spending cuts, despite contributing to a major drop in
motor finance fraud during 2010.
The Association of Chief Police
Officers’ (ACPO) vehicle crime intelligence service (AVCIS) will
lose its annual £300,000 grant from the Home Office on 1 April.
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From then on the Finance &
Leasing Association (FLA), which has sponsored the vehicle fraud
unit since its inception in 2007, will be the service’s chief
sponsor.
In 2010, 14% fewer motor finance
fraud cases than 2009 were reported – 832 – despite more cars being
sold on finance, according to statistics published this month by
the FLA.
At £14.6m, the total value of the
vehicles involved in fraud cases fell 13.5% compared to 2009.
Furthermore, FLA member companies
prevented more than 9,000 cases of suspected or attempted fraud
during 2010, avoiding losses of at least £116m.
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By GlobalDataMotor finance companies recovered
40% of fraudulently acquired cars, via their own investigations and
through work with AVCIS, which recovered more than 900 vehicles
over the year valued at £15.5m.
A AVCIS spokesperson said FLA
members receive nearly a 7:1 return on their trade body’s funding
commitment in terms of savings resulting from fraud prevention
activity.
FLA head of motor finance Paul
Harrison said: “Car fraud funds organised crime and FLA members
will continue to support the police by funding the vehicle fraud
unit.
“We hope the Home Office will be able to find alternative
funding streams for the rest of AVCIS.”
