Duping the dealers

As much as 30 percent of all motor finance fraud is carried out by cheating on car finance applications.

Figures from the Finance & Leasing Association (FLA) shows that motor fraud cost lenders £2.9 million in the second quarter of 2011 alone. This is 0.8 percent lower than the same time last year, as motor finance companies start to learn the tricks of the trade of the tricksters and become better equipped to spot fraud.

Paul Harrison, the FLA's head of motor finance, 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.'

In cohoots with the police Vehicle Fraud Unit, FLA member finance companies rooted out over 2,100 cases of motor fraud in the second quarter of 2011, which stopped £26.8 million of fraudulent deals in their tracks.

Suffice to say they're doing something right.

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