The Scrap Metal Dealers Act 2013: What Sellers Need to Know
The Scrap Metal Dealers Act 2013 is the law that governs every scrap metal transaction in England and Wales. It was brought in to tackle a serious metal theft problem that had peaked in the early 2010s. War memorials were being stripped of their plaques. Church roof lead was being rolled off overnight. Railway cable was being cut, leaving train services down for days. The scale had become a national issue, and the Act was the response.
What the Act did
The Act put every scrap metal dealer onto a licensing regime, required them to record seller identity on every transaction, and banned cash payments entirely under Section 12. The idea was simple: if every scrap sale had a named seller with verified ID and a traceable bank payment, the market for stolen metal would collapse. Broadly, it has.
Cash payments are banned
Since the Act came into force, paying cash for scrap metal is a criminal offence for the dealer. Every transaction must be settled by bank transfer or by cheque. If a dealer offers you cash for scrap, they are breaking the law. Bank transfer has become the normal way to pay, with electronic transfer done at the point of collection or immediately after.
ID is a legal requirement
The Act requires dealers to record verified seller identity for every transaction. What a compliant dealer must take from you is:
- Photo ID, a driving licence or a passport.
- Proof of address, such as a utility bill, council tax letter, or bank statement dated within the last three months.
- For scrap vehicles, the V5 logbook where available, or the relevant V62 route if the logbook has been lost.
This is not optional and it is not about being awkward. It is how the dealer meets their legal obligation and how the seller gets a clean paper trail for the goods.
How to spot a dodgy operator
A non-compliant scrap dealer is usually easy to identify once you know what to look for:
- Offers cash, often at a slightly higher rate, with no paperwork.
- Does not ask for photo ID or proof of address.
- Does not issue a receipt or any written payment record.
- Turns up in an unmarked vehicle with no trading name, no licence details, no phone number visible.
- Evasive when asked who they are licensed with.
If you encounter any of these, walk away. The sum they offer is not worth the legal exposure.
What is at risk for the seller
Selling scrap to a non-compliant operator is not just a problem for the dealer. The transaction itself is illegal, and the seller is technically party to it. Beyond that, you have no audit trail. If the metal is later linked to a theft, whether you knew about it or not, you have no proof of a legitimate sale. A clean, compliant transaction protects both sides.
How Metal Share Recycling stays compliant
We are registered with Natural Resources Wales as a Waste Carrier, Broker and Dealer. We take photo ID and proof of address on every collection. We pay by bank transfer directly to the seller's account within minutes of collection. We keep full digital records of every transaction. The paper trail protects you, it protects us, and it keeps the trade moving for the people who do it properly.
If you have scrap to move and want it done right, 07974 608 218.