The National Association of Motor Auctions (NAMA) has welcomed confirmation from the government that it will launch a consultation on addressing odometer fraud.

NAMA director Sue Robinson said: “It is positive to see that the government has now acknowledged the serious issue of odometer fraud.”

NAMA has outlined the problems that auctioneers face if they unintentionally sell a used car that has had its mileage adjusted, despite taking all reasonable precautions to ensure the vehicle had not been adjusted.

Mileage adjustment is the practice of altering a vehicle’s odometer to show a lower mileage than that actually travelled, thereby increasing the re-sale value of the vehicle.

Responding to a letter that NAMA sent to the newly appointed transport secretary Chris Grayling, the government has confirmed that they will be consulting on the need for action to address the issue of odometer fraud.

Robinson added: “We have been lobbying government since September 2015 to tackle the issue of odometer fraud, with the launch of a campaign to raise awareness and encourage the outlawing of mileage adjustment companies in the UK.

“We are pleased to see that the government has positively responded to our letter, we believe further action is essential as odometer fraud has been causing problems not only to auctions, but also to the whole industry.

“We will be monitoring the situation and continue to lobby the government to ensure every effort will be made in order to tackle the issue.”