Have I committed fraud?

Cufcmono23

Hi all first time posting as I can't find anything that matches what is happening to me.
In the process of setting up a DMP and most creditors have accepted however admiral loans phoned yesterday to query my budget.
Basically I have said on my budget I pay 200 a month rent however admiral have me down as a homeowner with a mortgage . I checked this box when I applied for the loan as I thought it was nearest to my circumstances (living with wife but house is in her name).
They have said they will contact stepchange soon to see if they accept my offer however however I am now panicking that I may have committed fraud and perhaps should have ticked the box for private tenant or lodger instead.
Am I likely to be prosecuted for this as I am worried sick. Any advice would be much appreciated thanks.

[Deleted User]

No, you won't be prosecuted.

Cufcmono23

Thank you so much for your quick reply. Really helps calm me down. Much appreciated.

PRAISETHESUN

You'll be fine. Circumstances change, and as long as you are giving accurate information about your current situation you won't have any issues.

That's the problem with these forms however, they are just a box ticking exercise for some computer to process and as soon as you have a non-standard situation they just can't cope

Les79

This happened to me once, over the "income/expenditure" declarations. They couldn't understand how I had a few £100 spare each month but was on a DMP. It was due to a gambling problem so, whilst my declaration was fairly accurate at the time, a lot of debt was run up shortly afterwards. Just simply proactively provided them with all the proof and they swiftly backed off.

In your case I think it actually depends on whether that declaration had a significant weighting on your application.... You see, if the company were unlikely to accept a tenant and likely to accept a homeowner (mortgage) then you have pretty much played the system here....

In reality, though, they may not bother even if you have played the system. Too much time and hassle and it doesn't really affect much in way of repayments; you'd be declaring the rent expenditure whether you were a homeowner or a tenant.

Gaz83

Les79 wrote: »

This happened to me once, over the "income/expenditure" declarations. They couldn't understand how I had a few £100 spare each month but was on a DMP. It was due to a gambling problem so, whilst my declaration was fairly accurate at the time, a lot of debt was run up shortly afterwards. Just simply proactively provided them with all the proof and they swiftly backed off.

In your case I think it actually depends on whether that declaration had a significant weighting on your application.... You see, if the company were unlikely to accept a tenant and likely to accept a homeowner (mortgage) then you have pretty much played the system here....

In reality, though, they may not bother even if you have played the system. Too much time and hassle and it doesn't really affect much in way of repayments; you'd be declaring the rent expenditure whether you were a homeowner or a tenant.

Surely that would require intent on the part of the OP?

JuicyJesus

Gaz83 wrote: »

Surely that would require intent on the part of the OP?

It'd require deception in order to obtain something that they wouldn't otherwise get. If the OP is being honest and can explain the circumstances I doubt it'd ever come to anything.

That said personally I'd have classified them as renting rather than a homeowner, as they don't actually own the home. Home ownership does (anecdotally) weigh heavily on application scorecards also. In the circumstances, however, I doubt they'll look into it any more deeply; not least since peoples' circumstances do change over time, and often very rapidly.

Cufcmono23

Thank you all for the replies. I guess I will just have to wait and see how it plays out. They are my biggest creditor so I have no idea how much of an effct being a "homeowner" had on my application. I am trying not to worry but it is difficult. In hindsight I should have maybe phoned them before the application and asked what to fill in for residential status. Anyway fingers crossed nothing comes of it but I will update when I hear anything back.

glennstar

JuicyJesus wrote: »

not least since peoples' circumstances do change over time, and often very rapidly

I suspect the terms and conditions place the onus on the OP to notify them if their circumstances change.

That said, the 2006 Fraud Act states;

A representation is false if [...] the person making it knows that it is, or might be, untrue or misleading.

As you have not (by the sounds of it) set out to mislead them you can't be guilty of attempting to or of actually (as the case may be) defrauding them.


I am not a Solicitor

financegeek

i would think (although should probably add i am not a solicitor) that technically although the house is in your wifes name, it's a marital asset and in the event of a split wouldn't automatically be given 100% to your wife (especially if there are kids involved and you've contributed to the property) so you picked the 'most correct' option.

You're not a private tenant, nor a lodger so neither of the other options are accurate either. had their been an option for 'residing in spouses property' and you'd ticked homeowner instead, then i can see why that may be considered deception.

either way, i can't see Admiral having issue with it now. Your circumstances may well have changed since you applied and pursuing it through the courts isn't going to make you repay the money any quicker, which is their goal in all this!

try to stop worrying about it if you can

Cufcmono23

Just a quick update still no news at all as to whether admiral have accepted my DMP offer. I have had no correspondence at all in fact so I am working off the theory that no news is good news. Still a bit worried but once again reading all your replies does help take my mind off it ��