Is This Fraud

happy_t

I would assume that when your friend applied for the loan they did a credit check. If there was any other creditors they probably already know about them and accounted for this when they did the affordability calculation for his loan.
If the other loan doesn't show-up on the credit search then who's to know?!
Tell your mate to get himself down to the citizens advice bureau and they'll be able to give him some more advice.
Having worked in the financial industry I can tell you that what the customer tells the advisor when applying for a loan is taken at face value. I can't imagine a reputable company would let him take out a loan without making sure he wasn't already financially over-committed.

billywhizz

As a Lender I would be far more concerned if he lied about his job, his home address, his income etc. We would get seriously unhappy if you gave falsified documents (Payslips, utility bills etc) but not so much about if you hadn't stated you had other loans. As the other poster said a credit check will show up most other personal loans, credit cards, mail order accounts even in some cases bank overdrafts so the lender can make an informed decision without relying on the customer to tell them how much they owe. If he does default how is suing him for fraud likely to help, all the lender will want is their money back.