Question about fraud

leedsfan_3

Ok guys this was asked by a friend of mine yesterday and I advised him absolutely not to do it but what would be stop someone from taking out a big loan and slowly withdrawing it over a few months, keeping the money hidden, then obviously with the balance in their account, quitting work and declaring themselves bankrupt?

paintpot

They would get caught and go to prison eventually and ruin the rest of their life

leedsfan wrote: »

Ok guys this was asked by a friend of mine yesterday and I advised him absolutely not to do it but what would be stop someone from taking out a big loan and slowly withdrawing it over a few months, keeping the money hidden, then obviously with the balance in their account, quitting work and declaring themselves bankrupt?

Snooze

leedsfan wrote: »

Ok guys this was asked by a friend of mine yesterday and I advised him absolutely not to do it but what would be stop someone from taking out a big loan and slowly withdrawing it over a few months, keeping the money hidden, then obviously with the balance in their account, quitting work and declaring themselves bankrupt?

Absolutely nothing, although if the person has any assets (like a house, for example) they can kiss goodbye to that, along with their credit rating for at least 6 years.

Rob

leedsfan_3

I thought so and you are right about not wanting that on your history for 6 years but it seems it's going to be difficult to dissuade him not least because how would they ever prove this fraud? he doesn't have any assets besides a poor second hand card which was bought for peanuts in the first place.

The only other assets he does have are at his parents place, i guess they could choose to take his hi fi? or his console?

Anyways thanks guys for the responses.

maninthestreet

Not very bright you friend, is he/she?

leedsfan_3

Nope lol, I think it's a crazy idea but there has been nothing so far which i can use to dissuade him from doing this.

budget_budd

Having no assets may stop someone from being able to take out a big loan.

leedsfan_3

When I say a big loan let me put it into context i am talking about a 20,000 personal loan

Snooze

leedsfan wrote: »

When I say a big loan let me put it into context i am talking about a 20,000 personal loan

I personally believe this "friend" of yours is actually you .

Rob

budget_budd

£20k is a lot of money, Id be interested to know who would be willing to lend that sort of money to someone with no assets, for no specific purpose (ie buying an asset)

Snooze

budget_budd wrote: »

£20k is a lot of money, Id be interested to know who would be willing to lend that sort of money to someone with no assets, for no specific purpose (ie buying an asset)

Depends how much they've got coming in to their account every month. You don't need assets to get loans (although it does help).

If you've got a fairly spotless credit file, can prove you've been in your job for a good length of time, are on the Electoral Roll and have at least 3 years of history then the banks would be lapping up his business.

Rob