Debt-ridden ‘turn to fraud’

A growing number of people are making false credit applications due to concerns about their debt and credit history.

New research from fraud prevention service CIFAS has indicated an increase of more than 24 per cent in the number of false statements made in applications last year, with 77,000 people resorting to misrepresentation to increase the chance of getting credit cards, loans and other services.

Growing fears about effective debt consolidation are also resulting in a number of people altering documents or lying about the length of time they have lived at an address to improve their chances of getting a loan.

Peter Hurst, chief executive at CIFAS, states that for those thinking about resorting to such measures, “telling the truth, even if it is slightly less palatable, remains the best policy”.

For those concerned about their credit history, an Individual Voluntary Arrangement (IVA) may be helpful in successful debt consolidation.

A recent report by the Money Advice Trust cited in the Guardian asserts that four out of five people are failing to use debt advice services to get practical guidance on debt management services – such as Individual Voluntary Arrangement (IVA) and unsecured loans for example.

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