'The register needs to be a legal body the dealer or private user can check'
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6 n the past few months I have noticed a
I major increase in the failure of finance, leasing and hire companies to use the Hire Purchase Information register (HPI) to record their interest in commercial vehicles and equipment.
The law holds truck dealers responsible for ensuring all vehicles and trailers we handle are free from any financial encumbrance. This is not only a legal obligation but a moral one to safeguard our customers' interests. However, there are just two means of checking this—the integrity and honesty of the owner and the use of the HPI register.
The failure to register with HPI causes many problems. Here are just two examples: in one instance a hire company did not register its interest in a long-term hire agreement and even allowed the documentation for the vehicles (including the registration document) to be held in the name of the user. The user, taking full advantage of the mistake, attempted to sell the vehicle to me. Before completing the deal I checked the HPI register—as with all my purchasing deals—and found the vehicle clear of any outstanding debts. Six months after our purchase the hire company, realising its mistake, has decided to register its interest—leading to considerable embarrassment not to mention cost to ourselves and our customer.
In another instance we were presented with a difficult problem when the finance department of a successful British truck manufacturer failed to register interest on several vehicles, allowing subsequent sales to occur on these vehicles while still under agreement.
How can we possibly be expected to know that anything we purchase is subject to outstanding debt if finance institutions cannot be bothered to register interest in their assets?
It is high time that the Government made it compulsory that all financial interests on vehicles—whether lease, hire purchase or hire agreement—be recorded on a central register. At present the financial institutions can reclaim their property without any recourse whatsoever to the dealer, who is the only person who has tried to prove the legality of the deal, If the finance, lease or hire company fails to register its interest through the HPI system it should have no case to make against a dealer who is able to prove the register was clear at the time he checked it.
There is also a case to be considered concerning the constant flow of stolen vehicles and plant that the dealer or user is offered every day. At present there is no way of checking who the rightful owner is—this situation needs to be rectified urgently. It would save the country thousands of pounds on fraud charges and investigation fees and property loss. The register needs to be a legal body that the private user or reputable dealer can easily check—this would prevent the innocent person from becoming a victim of fraud. )