Drivers issued car fraud warning

Drivers have been warned of the legal risks of providing false information when securing car finance or car insurance.

Some 2,500 fraudulent applications for car finance were recorded in the first three months of the year - a large proportion of which were made by drivers that didn't even know they were providing false information to lenders.

The Finance and Leasing Association (FLA) said that up to a third of cases of car finance fraud were committed by drivers who gave incomplete or inaccurate information during the application process.

Although the total number of fraud cases dropped by 3 percent in the first three months of the year, figures show that in the 12 months to March there were nearly 10,000 attempted fraudulent applications that could have cost lenders some 126.8 million pounds.

The Finance and Leasing Association (FLA) is using this week's National Car Crime Awareness Week to make car buyers and sellers more aware of motor finance fraud and the potential consequences for buyers.

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.

"If they fail to disclose their credit history during the application process or try to sell a vehicle that is still on finance, they are committing fraud against their lender and may have their car taken from them."

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