Fraud BBL

Juleszoemay

If it’s not too awkward to ask on here, who would you report a fraudulently obtained BBL to? 

The person I know of has obtained £25k against a business that doesn’t even exist, and is about to Apply for another, for another business that was also not legitimate, and closed in January. 

It’s not free money, but some lenders seem to be dishing them out with very limited information required. I appreciate you have to agree to certain things, but if you have no assets what are they going to do. 

It’s taxpayers money here and lenders are getting kick back from the government too so they don’t seem to be doing any due diligence. 

I believe this to be the funding circle in this instance but I’m sure it’s not the only one who doesn’t really care as it’s not their money. 

Thanks for any advice on whom to flag it to. 

Grumpy_chap

I think, one way or another, any defaulted BBLS funds will be aggressively pursued through the bank normal routes before the banks can hand the liability back to HMRC / Government and that the Government will also then pursue through some means, possibly a tax code liability?  Obviously, so far as I am aware, nothing has been announced on this, but there must surely be something.  In the case of fraudulent applications, I see no reason why legal action would not also be taken.

So, the risk to credit files and fraud markers is not worth it.

Juleszoemay

Hi Grumpy, 
My point is more that there are people (including the one aforementioned) who do not have assets, do not pay tax, earn cash through various means (take of that what you will) , manage to get £25k with a bank account in a business name (opened purely to get the loan), that is all. There are no books. And us tax payers will end up paying for it as his credit is shot already, and frankly wouldn’t care if he never got a mortgage etc. 

It just doesn’t sit well and the fact I’ve heard he’s about to go for a second one on another business that also never paid tax... I morally feel like I should tell someone before they pay it. As once they do pay it they’ll never get it back. 

Grumpy_chap

There are so many thread on here of people saying they have failed to get new business bank accounts and BBLS loans, then you come on saying the money is being thrown around like confetti.  Something does not match up.
If your friend claims all these loans but does not pay tax, maybe they will pursue fraud case and all that entails.  Maybe they will claim back against future benefits if there is no future tax to claim against.

Juleszoemay

He isn’t a friend. I know of him through a friend. He’s made of Teflon, nothing sticks! 

I think you’ll find that some of the lenders, like funding circle will be doing very little background checks, whereas banks like Santander and Lloyd’s will be doing many. I think that’s the difference. 

I’d be interested to know of those who are struggling to get them, who are they applying with? 

poppy12345

Juleszoemay said:

I’d be interested to know of those who are struggling to get them, who are they applying with? 

Plenty of threads on here, just do a simple search and you'll find them.

Jeremy535897

If the loan is not repaid, the bank will take action for recovery. Just because it is unsecured does not mean that the debtor cannot be pursued.

I doubt you have cast iron evidence that a friend of a friend is making fraudulent applications. Lots of people make up stories that sound like this.

These loans come from issuing currency. It's not your tax or mine that is being lent.

Grumpy_chap

Funding Circle website appears to say they will only advance BBLS or CBILS to existing customers who are Ltd Co.  That doesn't align with what the OP's friend-of-a-friend says.

Juleszoemay

I only mention funding circle as that was mentioned in a separate conversation, but it may have been another lender. 

I do have cast iron proof that he obtained the loan of £25k including the purchase of a vehicle costing £12k the day after it was paid out. I also know factually that he is not a director, did not have a bank account in the business name nor did it turn over anywhere near £100k last year! And certainly no books to back anything up. 

I don’t know how he managed it. But he did! 

Juleszoemay

The business does not exist at companies house etc. 

Grumpy_chap

Juleszoemay said:

The business does not exist at companies house etc. 

Not required if operating as a sole trader.