James Moss of DLA Piper says onus is on lessors to ensure haulage fleet operators have correct documentation
The Goods Vehicles (Licensing of Operators) Act 1995 states that any goods vehicle being used for business purposes on the road without a valid operator’s licence can be detained by an authorised person (the Vehicle & Operator Services Agency (VOSA), whether or not the operator is the owner of the vehicle.
Go deeper with GlobalData
Access deeper industry intelligence
Experience unmatched clarity with a single platform that combines unique data, AI, and human expertise.
Vehicles hired under asset finance agreements to haulage companies are frequently stopped by VOSA on random or targeted checks.
If the vehicle does not have a valid operator’s licence, VOSA can, and will, detain it.
Once a vehicle is detained, the onus is on the owner, not the customer, to satisfy the Traffic Commissioner that the vehicle should be returned.
The grounds for return are strictly enforced and will often require a full oral hearing before the Commissioner.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataSet out below are some of the particular difficulties which arise in dealing with such hearings:
- The time limit from seizure to a final decision is 21 days, so hearings are listed quickly and are very difficult to adjourn. This means paperwork and evidence needs to be collated quickly and thoroughly to ensure that every relevant point can be proved.
- The grounds which allow for the return of a vehicle are specific and narrowly defined. Proving ownership is only the beginning.
There are two frequently used grounds to apply for the return of a vehicle.
First, lack of knowledge the vehicle was being used without a valid licence. This ground is by no means easy to establish given that the Traffic Commissioners construe ‘knowledge’ widely to include the concept of ‘constructive knowledge’.
Secondly, knowledge that there was no valid licence, but steps were taken to prevent use of the vehicle. Again this is not necessarily easy to prove, as while the wording simply refers to ‘steps’, the Commissioners are inclined to read it as being ‘reasonable steps’ or even ‘all reasonable steps’.
It is apparent that the Commissioners expect owners to be proactive in ensuring their lessees hold a valid operator’s licence. This applies to all existing leases and the expectation is that the operator’s licence should be checked at the start of a lease and regularly thereafter.
The preference of some Commissioners is that this be done on at least a six-monthly basis.
What is clear is that the Traffic Commissioners take their role in policing the industry very seriously and expect lessors to engage actively in that role.
Each application will, of course, be judged on its own merits, but owners who can show they have endeavoured to confirm that their lessees hold a valid operator’s licence, stand a much greater chance of having their vehicles returned to them than owners who have done little or nothing.
In summary, ignore these provisions at your peril. A little effort now could save a lot of trouble later.
James Moss, is an associate at DLA Piper
