CIFAS category "deliberately avoiding repayments"

sunnysideup2001

Hi,

This is my first post and I've got a query for you all!

I'm about to enter into a DMP with Stepchange and I was having a browse of money/debt related stuff this afternoon when I stumbled across the CIFAS (fraud prevention) website. One of their types of fraud has got me mightily confused now!!

On the CIFAS website it states:
Misuse of Facility – Obtaining an account/policy or other facility with the deliberate intent of using that facility for a fraudulent purpose (for example, deliberately avoiding repayments or using an account to receive stolen funds or fraudulent transfers).

Its the "deliberately avoiding repayments" bit that has me a bit worried. What does this mean exactly? Stepchange have advised me to open a new bank account where I have no debts and I'm just waiting for my card and information pack to come through from Halifax any day now. They also advised me to cancel my Continuous Payment Authority instructions for both of my payday loans due out on pay day in a couple of weeks time which I have done. Do either of these count as me obtaining a bank account with the deliberate intent of using it fraudulently i.e. avoiding repayment of debt????

I know it would be daft for Stepchange to be advising thousands of people to do this if it constituted fraud(!) but I don't have any other way of understanding what "deliberately avoiding repayments" means!

Any of you clever lot know?

Cheers!

chanz4

Don't think it means dmps, think it means people who setup credit accounts with zero intention to repay

sunnysideup2001

I get what you're saying but how would a creditor know the difference? There's stories on here of people who've avoided (for whatever reason) their debts for years and years and I doubt that they've been reported to CIFAS. They just get chased with DCAs and the inevitable CCJs.

Just seems a weird thing to put as a type of fraud seeing as so many people avoid repayments all the time!!

sourcrates

Hi,

None of this information is relevant to you or your situation.

nothing else to say.

sunnysideup2001

Cheers Sourcrates - it didn't seem likely that it would be relevant to be honest!

What *does* it mean then? The mind boggles!

sourcrates

sunnysideup2001 wrote: »

Cheers Sourcrates - it didn't seem likely that it would be relevant to be honest!

What *does* it mean then? The mind boggles!

Its where someone deliberately opens an account with intent to defraud the creditor, entering a DMP, or defaulting on a debt because you cant pay, does not constitute this.

99.9% of customers would not fall into this category, a serial fraudster would possibly open numerous accounts with the intention of never repaying, there has to be proof of intention of not paying, when you opened your account, im sure you had every intention of paying, some people don't, so that legislation would possibly apply to them.

theoretica

It is your intention when you take the loan out - for instance if you plan to go bankrupt next month don't take out another loan and take all you friends on an expensive holiday. If you meant to pay the money back then you are clear of this.

Becka38940

I've come across this once at work. A customer claimed they had not received funds that had been sent, and when asked for proof sent an edited version of an online bank statement.

The company I work for's fraud department were able to confirm the funds had been deposited and withdrawn and that it was the customers account, so as a business we raised it with CIFAS