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£126.8m of fraud committed in year
Monday May 24th 2010
Nearly 10,000 attempted fraudulent applications, worth a total of Â£126.8 million, were made to motor finance providers in the year to March.
The statistics were announced as the Finance and Leasing Association (FLA) warned that by providing false information in a finance application or selling a car which has outstanding finance, customers are committing a serious crime.
In the first three months of 2010 there were nearly 2,500 fraudulent motor finance applications, a decline of 3% compared to the same period a year ago.
A large proportion of fraud cases may be committed unwittingly by car buyers.
Almost a third of motor finance fraud (30.8%) in the past year was application fraud, where a customer - sometimes unintentionally - gives incomplete or inaccurate information to a lender.
The FLA is using this week's National Car Crime Awareness Week to make car buyers and sellers more aware of motor finance fraud and the potential consequences for buyers.
Paul Harrison, head of Motor Finance at the FLA, said: "Car Crime Awareness Week is an opportunity for us to raise the profile of this type of crime, and remind people that they have legal responsibilities when taking out motor finance. If they fail to disclose their credit history during the application process or try to sell a vehicle that is still on finance, they are committing fraud against their lender and may have their car taken from them."
If you have your vehicle stolen months or years after you bought it, you may not receive the price you paid for it, because the car insurance company might deem it has dropped in value. A car value protector will cover the difference in cost between your car insurer's valuation at the time of the theft and the car's value when the car value protector was taken out.
Copyright Â© Press Association 2010
If your car gets written off, helpucover will pay the difference between your car insurers valuation at the time of the accident or theft, and the car's value when you purchased Gap Car Insurance.