Bills of sale Acts to be reformed

The Government has confirmed it will be reforming the bills of sale Acts. The Law Commission had recommended that using goods as security for a loan while still continuing to have use of them should continue to be possible, but said the laws were outdated and in need of reform. The Economic Secretary to the Treasury said the Government agreed with this principle and with most of the Law Commission’s recommendations. The key concern is that the laws leave gaps in protection for consumers who use log book loans and third party purchasers, which FCA cannot tackle in the existing legal framework. The Government will now support the Law Commission as it prepares a new law.