Is This Fraud

Bilgeman

If an applicant says they have no other personal loans when applying for one when in fact they do can they be prosecuted for this in the event of default? What would be the likely outcome? A bit vague, I know, but I have a mate who's very worried and not particularly forthcoming with details.

ben500

He has every reason to be worried if he has lied on his application whether he has defaulted or not if they become aware of the lie!

The very least they would be able to do is require the surrender of the loan in full, they could if they wish prosecute, in fact they may even be required to report the matter to the police under certain circumstances, with the scant information provided it is hard to be specific about what the outcomes may be but given what you have told us I would say his fears are justified, and he should seek legal help immediately and not rely solely on advice from non professionals such as myself for instance.

ben500

Out of curiosity are we just talking about two individual loans here or a higher multiple?

JimArnold

yes it is

Certainly falls under the phrase "obtaining money by deception" - probably a major problem if he defaults

jazzyjustlaw

I think it could possibly be more like "obtaining services by deception."

The company could prosecute if it found out but may only bother to do so if the person defaults.

I wouldnt do it if I were them though.

zincoxide

This is very unlikely to be dealt with as a criminal matter - the police have enough to deal with. If he defaults then it will be dealt with normally and then if it goes to court (normally civil) then the fact he has lied on his application will only mean he has to repay the full amount by any means necessary, which will include bailiffs and the possible sale of any property he owns.

angelatgraceland

All he is doing, is digging a deeper hole for himself by borrowing more and more money I think. Sounds like he needs a debt councellor and not a loan which will then tempt him for another loan in the future and so on and so on..........................Lets stop worrying about judging him and think about helping him longterm? Take a look on http://www.cccs.co.uk/and see if he may find their site helpful.

ffs

I would suggest that an individual act of deception would be unlikely to be pursued, however a systematic series of fraudulant acts would undoubtedly be investigated and then referred to the CPS.

Bilgeman

ben500 wrote:

Out of curiosity are we just talking about two individual loans here or a higher multiple?

Just two, I think, but like I say, he's keeping it a bit close to his chest

skintchick

Technically it is obtaining a pecuniary (financial) advantage by deception, and can be dealt with as a criminal matter, although I doubt that would happen.

He needs to come clean with them, say he's sorry, he 'forgot' (they won't believe this but no matter) and then see what they say.

They may not care. Or they may withdraw the loan and make him pay it back. But at least it will be sorted.

ben500

Bilgeman wrote:

Just two, I think, but like I say, he's keeping it a bit close to his chest

If it's just the two I would think he has little to fear by way of prosecution, however if there are more than two, it is most likely that a prosecution would be considered. Tell him to go legal first half hour can be obtained free of charge in most places. If as you suspect that he is keeping the whole story from you it would probably be better if you could steer him towards debt counselling in the first instance.