Conversion Fraud Rises; Beware!
Motorhound.co.uk implores you to, when buying a your car, ensure that you make every possible check to minimise the losses that could face you from buying one with a finance balance outstanding; failure to do so will leave you in a very weak position when seeking recompense!
Conversion fraud levels – where cars are sold before outstanding finance balances have been settled – are on the rise, reported the Finance & Leasing Association (FLA).
“Almost 40 percent of motor finance fraud cases in Q3 2009 were committed by people selling cars which they did not own,” the association said. “Around 25 percent of motor fraud involved applicants giving false information on their finance application form.”
In all, motor finance fraud is estimated to have cost the industry some £3.4 million in Q3 2009; the good news is that the number of reported fraud cases fell by 29 percent compared with the same period in 2008, showing that industry efforts to fight fraud are having some success.
“At least 2,700 cases of attempted motor finance fraud were prevented in Q3 2009 alone,” the FLA said, saving motor finance providers around £35 million. This year to date, fraud detection measures have saved the industry at least £100 million.
