Is it fraud to obtain a car loan using a company you no longer own

With the current economic problems, getting a car loan has become even more difficult. While in the past there had been several sub prime car loan companies that had provided car loan approvals to almost anyone, things have changed today.

Getting a loan would be much more difficult for those who do not have a valid income source to show the lender. Quite a lot of people often turn towards other ways of getting an approval.

Can you show documents of income for a company that you do not own?

If you are self employed, it would be even more difficult for you to get a car loan. There are a few people who try to get an approval for a car loan by using a company that they do not own any longer.

You must know that the action is considered to be fraud and it can create several serious problems for you in the future. Car loan companies today have

strict procedures and there are high chances that your fake documents would be easily spotted.

Why is it considered to be a fraud?

When a borrower applies for a car loan, the lender would ask for a specific set of documents. These documents are needed so that the lender would be able to evaluate them to decide if the borrower fits into their desired profile.

This would help the lender decide if they should provide a car loan to the concerned borrower or not. When you provide income documents of a company that you no longer own or provide any incorrect information knowingly, it is fraud since you are trying to misdirect the lender for your own benefit.

Since the banks and loan companies today are highly advanced and have several different methods of cross checking the information and the documents provided by each applicant, there are high chances that any incorrect documents or information would be noticed.

There are strict legal proceedings against anyone who commits fraud in UK and so it is important that you stay away from any inappropriate or misdirecting action in the future.