Times are hard and Finance Fraud is on the rise.
According to the Finance and Leasing association in the last 12 months alone , nearly 30% of was committed using false finance applications.
The Finance & Leasing Association published motor finance fraud figures for the second quarter of 2011 today and it frightening reading.
Now the banks and financial insitiutions have taken a lot of flack in recent years. Some deservidly so. With the tax payers cash injections we deserve better. We need someone to look after our interests. The FLA help to do this. However it still costs us all millions of pounds each year.
The report shows that a common way to commit fraud is to give false information the most common of which was to lie about their employment circumstances. Some even giving false employment history’s and fictitious employers.Some even Show fraudsters use false home addresses and overstate their earnings to increase their chances of getting credit.
That said Motor finance companies have become very good at spotting fraud.
In fact only one in every eleven fraudulent applications is passed.
Even though Motor fraud cost £2.9 million in the second quarter of 2011. This was ever so slightly less than the previous year. This means a total fall over 12 % year on year. This prevented over £26.8 million of fraudulent claims.
Paul Harrison, from the FLA said “Application fraud increases in tough economic conditions as people know that it can be difficult to get finance if they have a poor credit history, or an unsteady source of income. But exaggerating their income, hiding previous addresses or giving false employment details to improve their chances of getting a car on finance is fraud and will be reported to the police. We have just entered our fifth year of sponsoring the Vehicle Fraud Unit of the ACPO Vehicle Crime Intelligence Service and have recruited additional police officers to help send a clear message that fraudsters will be prosecuted.”
It may be a tough message but fraud costs us all millions a year in increased costs and charges , so well done FLA for all of your hard work.