The Driver and Vehicle Licensing Agency (DVLA) is under investigation by credit reference agencies after complaints from the Registry Trust that they are causing a rise in county court judgements by being too quick in chasing motorists and starting court action when people don't pay their road tax on time.
This is believed to be causing growth in sub-prime mortgage market. The Registry Trust believes that lenders are now more likely to use courts to recover debts than in the past. Figures released by the trust show that the number of County Court Judgements rose by 7% last year to 573,000, and around 216,000 of these came from the DVLA! Sub-prime lenders have said that the amount of people with judgements is causing more potential borrowers to fall into the adverse mortgage market.
Our view
People have enough notice that their car is due to be taxed, they can see their tax disc on the front their car every day i.e. they have many months notice. We all have no real excuse for either not renewing on time or notifying that our car is off the road if we cannot afford to tax it.