Will You Be Subject To Car Finance Fraud?

Tuesday, 6. July 2010

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As most of you know the mortgage and financial services industry are regulated by the Financial Services Authority (FSA), for the time being at least until the new structure, as announced by the Chancellor, takes over fully in 2012. Cases of fraud are dealt with by both the FSA and the Office of Fair Trading(OFT) in conjunction with the police. However, whilst the OFT keeps a watching brief over the activities of those operating in the motor finance industry the crooks and con men get away with murder compared to those in Financial Services. Every day I receive briefs regarding fraud in the mortgage and financial services industry so to assume that at least the same amount of fraud doesn’t go on in the unregulated sectors is bonkers. Here are just a few headlines received in the last few days:

OFT revokes licence of businessman with 23 criminal convictions

Indebted business consultant jailed for £150,000 fraud

Five banned, and one fined £130,000 and banned by FSA

Three partners at Sheffield mortgage broker hit with FSA fines

Illegal money lender imprisoned for charging 1,000% interest

FSA fines three partners at Sheffield mortgage brokerage

And these appeared over just 2 days! I receive these notices daily and this is a regulated industry, just imagine what is going on in the motor finance industry, do you really know who you are dealing with when you chat to a car leasing bucket shop? Let’s have your thoughts? By Graham Hill