Removal of previous keeper information from V5 documents could lead to fraud warns data expert.

The DVLA’s decision to remove information from V5 log books could lead to an increase in fraud on used vehicles, according to automotive data experts cap hpi.

The change to the existing format of the V5c document, made by the DVLA with immediate effect, sees the complete removal of previous keeper details.

The DVLA’s understandable move to protect consumers’ personal data as part of its commitment to the new GDPR legislation, could, unfortunately, have a direct financial impact on the dealer network and, potentially, wider repercussions on the automotive industry as a whole, advises cap hpi.

Dealers follow a due diligence process before purchase when conducting a mileage investigation in order to ensure they avoid buying a vehicle with a tampered odometer. It reduces the dealer’s exposure to financial risk and helps protect their public reputation. The positive knock-on effect is that this helps the entire industry to reduce vehicle fraud.

The DVLA’s move to limit previous keeper information on the V5c to only the current keeper means that where a full mileage investigation is required, cap hpi and all other suppliers to the industry must now contact DVLA for the previous keeper details as part of the investigation process. A process for which the DVLA makes a charge.

cap hpi believes this now opens up the market to higher risk of fraud. The company’s hpi check data has identified one in 16 vehicles has a mileage discrepancy, a one in three chance of uncovering a hidden problem and one in five cars has had a plate change.

Wendy Swaine, head of retail at cap hpi, commented: “The nmr investigation itself gives dealers the peace of mind that the mileage on a potential purchase is accurate, allowing them to buy with confidence.  With so many clocked cars on the road in the second-hand market, it’s important to undergo an investigation before purchasing. We appreciate the DVLA will be mindful of more stringent data protection legislation recently introduced.

“However, this change impacts the way in which a mileage investigation must now be conducted as part of a hpi check or comprehensive manufacturer approved check. This change could have broader implications for the dealer network with the potential of increased cost to dealers, because of the DVLA’s charge for previous keeper details. There is a risk that some may opt to forego the mileage investigation, opening themselves up to accidentally making a risky purchase, and then potentially being hit by the reputational damage to their business when the fraud is uncovered. It’s potentially a double whammy for dealers, the industry and the consumer, which is why we are urging the DVLA to look at the wider ramifications.”

Existing V5c documents are unaffected until they are updated and re-issued by DVLA, at which point the previous details are then removed.

cap hpi is helping those using the nmr investigation, carried out as part of either a hpi check or a chosen manufacturer approved check, by updating the input screens based on the style of V5c applicable to that vehicle. It means only those fields which can be completed as per the information supplied by the DVLA will be shown based on the V5c issue date.

cap hpi will also add all keeper disposal dates to the hpi check to allow buyers to make a more informed buying decision.

The Q&A’s below will offer some more help, alternatively all dealers concerned can speak to their account manager or contact the Customer Support team on 0113 222 2007 (Mon-Fri) or 0113 412 888 (Sat-Sun) 

Q&A:

What details will cap hpi need when a nmr investigation is raised?

Currently, when raising a nmr investigation both the current and the previous keeper details on the further input page from a V5c Document issued before 25th April 2018 are required.

Why is the current and previous keeper information required?

This is, so that cap hpi’s nmr team knows who to contact to gather information for the investigation.

What has happened since the introduction of GDPR?

In line with GDPR changes made by the DVLA, all new V5cs only show the current keeper.

cap hpi have updated the nmr system to check the V5c issue date first - if the vehicle has had one  keeper and the V5 is a new issue the system will only ask for the current keeper.  

What happens if the V5c was issued before 24.4.18?

Both keeper’s details are required – which is the data cap hpi needs to complete the investigation.

What happens if it’s a new V5c? 

Where there is a new style V5 and the vehicle has only one keeper the DVLA fee can be saved if the details are entered correctly. If there is more than one keeper, the DVLA fee will be charged.

How much will it cost?

For more information on the DVLA fees and any process changes please contact your account manager