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Thinking aloud here.
The MIB have presumably paid out for an uninsured accident - a hit/run where driver was not identified?
They have an obligation to the unsurance industry which funds then through a levy to recover payouts where they can trace the liable party. Frankly if they had £100 for every time there was no DVLA keeper change but R/K at time says he'd just sold it for cash there'd be no need for a levy!
The OP needs to explain clearly to them with as much suporting detail as possible EXACTLY what happened. This might include the date of the transaction, any description of the purchaser and how he arrived left and how you were paid. Did you keep a copy of the notification slips detatched from the V5 or of any other correspondence.
In the circs you may need to stand the story up in court so getting the legwork done now rather than later when memory has failed further would be a good thing.
EDIT You say in your openining post that police visited shortly after sale/accident and you gave them purchaser's details. If matter is still live they and MIB should have access to the officer's notes.
Edited by Bromptonaut on 25/11/2012 at 14:07
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