There is a big deep black hole regarding change of vehicle registration in the UK as you have highlighted.
The DVLA hide behind the data protection laws so you can't find out who has registered your car as their own. Presumably the police will be less than interested as it's "a civil matter"
I had a similar situation years ago when speeding tickets started dropping through the letter box from places I had never been to. I found out the nearest open police station ( don't laugh) to where the last tickets originated and complained that my car reg plates had been cloned, and was issued a crime number. I then quoted this crime number to reply to the ticket and heard no more.
Did the police issue you with a crime number?
The process of selling a car and re-registering it to a new owner is much more complicated here in france and involves forms with multiple copies and the the registration document is given to the new owner, but struck through with a black marker pen and the words "vendu le" and the date and time and signed by the seller, this cancels the reg certificate.
Also the seller has to provide an official document proving that the vehicle is not subject to any lien, finance, unpaid speeding or traffic fines.
Unless all that is complied with it will not be possible to re-register the car.
The DVLA procedure is a criminal's charter if anybody can apply to register any car in their name and that takes precedence over the legal owner's registration.
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