Car loan fraud options
Car loan fraud will safe you from many financial losses. The rapid pace of development of automobile lending has led to the fact that in this area there are not a small number of scammers. The schemes that they use are usually simple, but they are not always open. In addition, over time, scammers come up with new and new options for action.
Car loan fraud by borrowers
Borrowers use different schemes for car loan fraud. Often, the loan is issued with stolen or forged documents. In this case, the fraudster immediately after receiving the transport issues a copy of the passport for the car (you can do this by telling about the loss of the original document). Not every buyer pays attention to the fact that the documents are marked as a copy. The fraudster gets his money and disappears, and the buyer suffers since all claims will now be made by the bank to him. In some cases, the car is not sold completely, but is disassembled for spare parts and is already sold in this form.
Fraudsters can also involve a third party in the transaction. Usually, it becomes a person with nothing to take, since it does not even have a permanent residence. Such a person is paid a certain amount for signing credit papers, after which the fraudster takes the transport. After a while, the bank requires the borrower to pay the loan, but they can’t do it. In this case, even a trial will not help the bank, because there is nothing to take from such a figurehead.
Such schemes have been used for a long time and they are very common, but other options can also be used, because fraudsters are constantly improving, come up with new options for credit transactions, in which the chances of obtaining a loan will be the greatest, and the risks of incurring criminal liability will be minimal.
Fraud by a credit institution
In most cases, fraud in the field of car lending affects banking institutions, but sometimes there are other situations. The victim of car loan fraud can be the person who wants to get a car loan. Illegal actions, in this case, are performed by an employee of the bank, which is engaged in accepting applications for transport lending.
When a person visits a bank where they want to issue a car loan, they make an application, fill out a form with all their personal data, and leave copies of important documents. The credit specialist accepts all the documentation and says that a response will be given within a few days. After some time, this specialist calls the person and says that their application was rejected.
In most cases, a person goes to a different bank to achieve their goal and forgets about the previous attempt. He remembers it only after the bank where the refusal was allegedly given, letters begin to arrive with a request to pay off the debt on the car loan. It turns out that an employee of the bank used someone else’s documents to make a car loan to a fake person. To avoid becoming a victim of such a fraudulent scheme, after receiving a loan refusal, you should not be lazy and go to the bank to collect all your documents.