The Scrap Metal Dealers Act, and why there is no cash

Why the law changed

By the early 2010s, metal theft had become a serious problem: cables from railways, lead from church roofs and manhole covers from streets. Cash sales made stolen metal easy to sell and hard to trace.

Parliament responded first with a ban on cash payments, then with the Scrap Metal Dealers Act 2013, which came into force on 1 October 2013. It replaced the old registration system with proper licensing run by local councils.

What the Act requires

Anyone carrying on business as a scrap metal dealer in England or Wales needs a licence from the council. There are two kinds:

• a site licence, for a business operating from premises such as a yard
• a collector’s licence, for mobile collectors working in a council’s area
• payment by cheque or electronic transfer only, never cash
• identity checks on every seller, with records kept for three years

What it means when you scrap a car

Because a scrap car is scrap metal, the buyer must pay you by bank transfer or cheque, and must record who you are. Have photo ID ready and expect your details to be noted. This is a sign of a legitimate buyer, not an intrusion.

The rule protects you as much as the buyer. A bank transfer is a clear record of the sale, which you may need if there is ever a question about when and to whom the car went.

Checking a dealer

Licences are listed on a public register. In England the Environment Agency publishes the register of scrap metal dealers; in Wales it is held by Natural Resources Wales. Councils also publish the licences they have issued.

A legitimate buyer will happily tell you their licence details and the Authorised Treatment Facility that will receive the car.

Scotland

In Scotland, metal dealers are licensed under separate legislation, the Air Weapons and Licensing (Scotland) Act 2015. Its ban on cash payments for scrap metal took effect on 1 September 2016, along with identity checks on sellers.