Law Commission Consultation Paper No 225 on bills of sale

The Law Commission of England and Wales published its Consultation Paper on the Bills of Sale Acts on the 9th September 2015. The consultation will run for three months, during which time any interested parties may respond. The Consultation Paper, Executive Summary and other related documents, including details on how to respond, can all be downloaded here.

Much of the Law Commission’s work focuses on the use of bills of sale for high-cost consumer lending, when sub-prime borrowers grant security over their vehicles.  In this so-called logbook loan market, the Law Commission proposes to do away with the requirement to register bills of sale at the High Court, relying instead on asset finance registries such as HPI. There are proposals to stream-line the High Court registration process for bills of sale over other assets, and for receivables financing transactions, which are also registrable at the High Court when entered into by non-corporate debtors. However, the Law Commission has not taken this opportunity to recommend more extensive reform of the Bills of Sale Acts. In particular, the proposals would retain aspects of the legislation which currently prevent unincorporated businesses from granting certain types of security, such as the floating charge.

The Project intends to respond to this consultation.

Further reading:

L. Gullifer and S. Hurst, Bills of Sale Acts: ripe for reform? [2013] JIBFL 685