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Citizens Advice

The Citizens Advice service helps people resolve their legal, money and other problems by providing free, independent and confidential advice, and by influencing policymakers.

Every Citizens Advice Bureau is a registered charity reliant on trained volunteers and funds to provide these vital services for local communities.

Citizens Advice service strategy 2008 - 2011 cover


Citizens Advice response to consultation on Bills of Sale

Citizens Advice Chief Executive, David Harker said:

“Bills of sale date back to Victorian times and have no place in a 21st century consumer credit market based on principles of fair trading. There is no consumer protection and people can end up in serious debt and risk losing their car and even their home when they borrow money this way. It’s high time they were banned.

“CAB advisers have seen cases where borrowers have been subject to unfair or misleading sales practices, with lenders failing to ensure borrowers clearly understand the terms of the agreement before they sign up to it, and failing to check they can afford the repayments.

“Missed payments can lead to aggressive debt collection tactics, and problems with bills of sale debts do not end with repossession. Bureaux have seen cases where lenders pursue shortfalls after sale aggressively, including putting people’s homes at risk through the use of charging orders – a second chance at securing a previously secured debt.

“We would urge anyone tempted to take out such a loan to think very carefully about doing so.  Anyone already having problems with a bill of sale agreement should contact us as soon as possible for free, independent advice.”

Bill of sale lenders target people with poor credit records, offering high cost loans with a car or other vehicle used as security.  Interest rates can be well over 600% APR - higher than those charged by doorstep lenders.

Bill of sale agreements – of which some 33,000 were made last year -effectively pass over ownership of goods, such as a car, to the creditor.  As long as payments are maintained, the borrower can keep the goods, but if the borrower defaults, the creditor can repossess the goods without a court order.


Notes to editors:

  1. The Citizens Advice service is a network of independent charities that helps people resolve their money, legal and other problems by providing information and advice and by influencing policymakers.
    For more information in England and Wales www.citizensadvice.org.uk
    For more information and 2008/9 service statistics see Introduction to the service
    For 2008/9 service highlights see the Citizens Advice service impact report
    For 2008/9 social policy campaigning highlights see the Citizens Advice social policy impact report
  2. The advice provided by the Citizens Advice service is free, independent, confidential, and impartial, and available to everyone regardless of race, gender, disability, sexual orientation, religion, age or nationality.
  3. Most Citizens Advice service staff are trained volunteers, working at over 3,300 locations across England and Wales.
  4. Citizens Advice Bureaux in England and Wales advised 2 million clients on 6 million problems from April 2008 to March 2009
  5. Advice and information www.adviceguide.org.uk
  6. Volunteer hotline 08451 264264 (local rate)
  7. Citizens Advice Guide to your rights, second edition: January 2008 - over 600 pages of practical, independent CAB advice. An invaluable resource for any bookshelf - available from all good bookshops; price £11.99; ISBN: 9780141034089
  8. Follow Citizens Advice on Twitter: (New window) twitter.com/CitizensAdvice
  9. Subscribe to Citizens Advice press releases via RSS news feed: www.citizensadvice.org.uk/pressoffice