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There isn't really a definitive answer to this. I can see how it could leak immediately and also how it could take time to show a fault.
For instance if you have an undertray then even though the leak could have started almost immediately the undertray would have caught the oil and stopped it dripping on the ground. It would eventually drip once the tray was saturated. This could be a few days after the service.
You would relay need to examine the cap. Make sure it wasn't cracked, had stripped threads, that the 'o'ring was in place or not damaged.
Hi Mark,Local garage stated the oil filter cap had not been fitted correctly. Would an error with fitting the cap back on cause the oil level to drop over time.
What would be the knock on effects of the oil filter cap not being replaced/fitted correctly?
If the cap was not fitted correctly then oil could escape because the seal would also not be in place correctly.
Hi Mark if not fitted correctly and oil escaped would this damage the engine?
It could do if it wasn't noticed quick enough.
If oil was dripping slowly into undertray then I don't suppose you would notice until oil level dropped low enough to trigger warning light.
That could happen
Would oil only drip out of filter while engine was running?
Most likely yes as that is when it is under pressure.
Although it might seep a little with the engine off until any pressure disapated.
Do you require anything else?
Can the internals of the oil filter be damaged? If so what would cause this?
It is possible if an idiot fitted it.
The second part cannot really be answered fairly.
Could a tapping noise heard just before the low oil level light came on be attributed to the loss of oil?
Yes it could.
Many thanks Mark.