Car buyers warned of finance fraud

Tuesday, May 25th 2010

Those buying and selling cars could be committing finance fraud without realising it, the Finance and Leasing Association (FLA) warns.

Almost 10,000 attempted fraudulent applications were made in the year to March, to firms providing motor finance, the body revealed.

Giving false information when applying for such funds or selling a car with outstanding finance all count as fraud.

The organisation added there have been almost 2,500 fraudulent finance applications in the first quarter of this year.

Paul Harrison, head of Motor Finance at the FLA said: "Finance companies continue to work closely with police to combat finance crime, but it is vital that consumers are made aware of how fraud could affect them."

Car Crime Awareness Week was launched on May 17th to educate people on the issue and highlight legal responsibilities, he added.

The FLA explains a simple history check can tell people whether there are any issues with the vehicle they are considering purchasing and can be done quickly.