Fraudulent car loan applications up, figures show

Mon, 17 Nov 2008

There has been a large increase in the number of people applying for fraudulent car loans, according to new research.

Figures from Experian, the global information services company, show that the number of attempted car finance frauds increased by 30.4 per cent in the first three quarters of the year when compared to the same period in 2007.

According to Kirk Fletcher, managing director of the firm, the high value of vehicles makes car loans a popular target for criminals.

He explained that mortgage and personal loan providers have tightened their criteria in recent months, making the car finance market more attractive for fraudsters.

He said: "Most recently, applications for car finance have begun to slow down and August and September saw a drop in activity. Despite this, fraudulent applications have still continued to rise."

Meanwhile, the Competition Commission has published proposals relating to the payment protection insurance (PPI) market for loans .

According to the body, people should be encouraged to shop around for PPI, rather than just taking it from their loan provider .
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