We Buy Cars, Vans & 4x4s In Any Condition
|Posted on July 17, 2018 at 11:05 AM|
Did you know that under changes to the Scrap Metal Dealers Act in 2013 it is illegal for Scrap Metal Dealers to pay cash for scrap metal? But why was this change made and what does it actually mean? One of the main reasons that this change was introduced was to cut down on metal theft and make it harder for criminals to get rid of stolen vehicles and metal.
What payment methods are suitable?
According to Section 146 of the LASPO Act 2012:
1. A scrap metal dealer must not pay for scrap metal except-
o By a cheque which under section 81A of the Bills of Exchange Act 1882 is not transferable, or
o By an electronic transfer of funds (authorised by credit or debit card or otherwise).
As is clear from the above, cash is no longer a suitable form of payment and only cheques or electronic bank transfers can be used for scrap payments.
Why does this apply to scrap vehicles?
By regulating the scrap metal industry in this way the government is able to ensure that all scrap vehicles are disposed of properly using the safest and most efficient methods. By outlawing cash payments there is now a traceable paper trail between the seller and the scrap metal dealer which is helping to prevent criminals from disposing of cars quickly and easily.
Another reason to stop cash payments is to make sure unsafe vehicles are taken off the road and that there is evidence of this taking place. This is another way that the changes have helped to reduce dangerous cars being put on the roads.
There is a slight difference between scrap vehicles and roadworthy vehicles, as vehicles being sold for scrap cannot be paid for in cash, while those that are being sold for salvage parts can. When in doubt its always best to get paid by cheque or an electronic transfer as this is a lot more secure and provides a paper trail.
Are any other types of payment not allowed?
Basically, any form of payment or provision of reward that can’t be traced is not allowed. This can include a range of payment methods and not just cash. Some examples of these include:
o Foreign currency
o Gift cards
o Postal orders
Any form of method that allows anonymous payments to the seller is not permitted. With this in mind if you are looking to scrap your car then get in touch with Cars-2-Cash for the best prices paid by instant bank transfer.