Government cracks down on vehicle matching scammers who cost consumers £3m a year.

Consumer Direct, the Office of Fair Trading (OFT) advice service, is warning consumers to beware of vehicle matching scams operating in the UK.

The scam works when vehicle matching firms cold-call consumers who are advertising their car – online, in a newspaper or in a magazine – and say that they have a buyer for their car. The seller is then asked to pay an upfront fee before the sale is completed. In the majority of cases there is no buyer, the contract with the vehicle matcher cannot be cancelled and the fee that has been paid is simply lost.

Consumer Direct estimates that around £3 million of consumer money is lost this way every year, with approximately 1,600 complaints received by the advice service in 2008, who lost between £80 - £99 each. The true number of victims, however, is thought to be much higher.

Michele Shambrook, Operations Manager for Consumer Direct said: “If you’re cold called by traders promising to put you in touch with guaranteed buyers, it’s worth thinking very carefully before paying an up-front fee.”

Mike Haley, OFT Director of Consumer Protection, said: “Time is up for rogue traders who attempt to cheat sellers with false promises of a guaranteed buyer for their cars. We are working with the industry and enforcement partners across the UK to crack down on scammers who are preying on consumers during the economic downturn.”

The government agency has also been working with online and print publications and websites including Auto Trader, Exchange & Mart and eBay to put in place clear warnings about these scams for consumers who are advertising their vehicles.