Motor finance fraud 'increased during Q3'

Two in five motor finance fraud cases were committed by people selling cars they did not own during the third quarter of the year, it has been reported.

According to figures published by the Finance and Leasing Association FLA, a further quarter of all cases involved applicants providing false information on their finance application form.

The FLA also said motor finance providers witnessed an increase in the number of people selling cars before settling their outstanding balance.

Fraudulent deals cost the industry £3.4 million in the third quarter of this year, the FLA noted.

Paul Harrison, head of motor finance at the association, said anyone having trouble making payments on their car, or on any other loan, should immediately discuss the matter with their lender.

He added: "Finance companies have been especially vigilant during the recession so as to stamp out fraud, whether opportunist or organised. Fraud is not a victimless crime."

Paul Watters, head of AA Public Affairs, recently claimed that more than two-thirds of UK drivers support plans to introduce a new offence of 'keeping a vehicle without insurance'.

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2009-12-17 13:04:36 © Moneyextra.com