Bills of sale have been revived in recent years as logbook loans. The Law Commission (the Commission) carried out a consultation on bills of sale in September 2015, and has now published its final report, Bills of Sale.  

A logbook loan is a type of sub-prime lending, where the borrower gives the lender a bill of sale on a vehicle they already own. The borrower may continue to use the vehicle so long as they keep up the repayments, but risks having it seized on default.

In its report, the Commission has made a number of recommendations for reform, including the repeal and replacement of the Bills of Sale Acts with a new Goods Mortgages Act. This Act would govern the way individuals may use goods they already own as security for loans, while retaining possession of them. The Commission intends to tie the new Act to the existing Consumer Credit Act 1974, in particular to the protections afforded to individuals under a regulated hire purchase agreement.

If the Commission's recommendations are accepted by the Government, the next stage would be for the Commission to draft the Bill.