One of the UK’s biggest vehicle salvage auctioneers decision to ban cash payments for written-off cars, has been welcomed by West Midlands Police and the Police & Crime Commissioner.
Salvage management specialists SYNETIQ – has announced that from 1st March it will stop accepting cash payments from customers and will instead insist on bank transfers.
Their investigations suggest criminal gangs are…
- Purchasing damaged cars rated insurance write-offs from salvage auctions
- Stealing cars to order for the parts they need to fix them rather than buy expensive factory -made parts from manufacturers
- The selling the vehicle for big profits
Around five times more vehicles – mainly luxury marques like Audi, BMW and Range Rover or other high-spec cars – are sold at auction as repairable write-offs compared to write-offs to be scrapped for spare parts.
And it’s suspected the imbalance is leading crooks to steal cars – some during violent car-jackings.
Close potential loopholes that could be exploited by criminals
West Midlands Police Chief Superintendent Chris Todd said: “SYNETIQ are setting a great example: they are listening to police concerns over the rise in stolen cars and are taking steps to make it more difficult for crime gangs to exploit the salvage vehicle industry.
“It’s widely accepted cash payments are fuelling car crime and acting as a money laundering loophole. By making purchasers buy salvage vehicles through bank transactions then we have a footprint of the sale which would clearly help any subsequent investigations.
“We want all salvage businesses to remove cash payment options, tidy up their processes and close potential loopholes that could be exploited by criminals. We also want salvage auctions to introduce a ‘know your customer’ framework and have clear structures in place to report suspicious buyer activity.
Richard Martin, Group MD of SYNETIQ, added: “We have worked closely with our clients and the authorities and will continue to drive up standards and trust, in both our business and the industry.”
The PCC and West Midlands Police are members of the government’s taskforce on vehicle crime. It is examining potential law changes and measures that the industry can take to better protect vehicles from theft.
The West Midlands Police and Crime Commissioner, David Jamieson, who has been leading a national campaign to reverse the rise in car crime, said: “I’m delighted SYNETIQ have listened to the police and acted quickly to ensure its process doesn’t allow criminals to exploit loopholes in the system.
“I will continue to fight for more to be done by government, motor manufactures and the insurance industry to clamp down on car thefts.”