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Warning over motor finance frauds

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The Finance and Leasing Association (FLA) has warned that customers could be committing serious motor finance fraud without even realising.

The FLA said that giving incorrect information in a finance application, selling a vehicle with outstanding finance and avoiding car insurance, are all areas that customers claim to not be aware of.

Statistics released by the FLA show that almost 2,500 fraudulent motor finance applications were received in the first three months of 2010.

In the 12 months to March, around 10,000 attempted fraudulent applications with a total value of £126.8 million were filed with motor finance providers.

Fraud cases decreased by 3% in the first quarter of this year compared with the same period last year.

However, most of the cases such as application fraud, which formed 30.8% of motor finance frauds last year, may be unintentional on part of the customer who gives out incomplete or inaccurate information to a lender.

The FLA is spreading awareness regarding motor finance fraud and its consequences through the National Car Crime Awareness Week.

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."

© Press Association 2010