Consumers taking out mortgages and loan fraudulently

Recent research has revealed that some consumers in the UK are fraudulently taking out loans and mortgages by using false payslips that can be easily purchased online.

Experts state that desperate consumers that want lenders to think that they are earning more than they actually are have found that purchasing false payslips online enables them to boost their income in the eyes of the lender, and results in many taking out loans and finance that realistically they simply cannot afford to repay.

Reports indicate that there are a number of sites that offer services that enable consumers to get hold of fake salary details for a very low cost. Just ten pounds could buy consumers a false payslip or even a P60 upon which the chosen company name, salary, and personal details provided by the purchaser will be printed. These firms do not even carry out checks, and will simply put whatever details the consumer asks for on the payslip.

The Institute of Payroll Professionals warned that consumers may be lumbering themselves with huge levels of debt that they simply cannot afford to handle as a result of this practise.

The Chief Executive of the Institute stated: 'We know that consumer bad debt is rising and we suspect this must be one of the main contributory factors. It's so easy now to fake your earnings when applying for mortgages or loans and yet there seem to be no rules against these websites.'

However, the companies that deal with these payslips offer a defence to the practise, stating that there are often valid reasons why consumers may need to get wage slips printed externally.

One official from one of these sites said: 'Sometimes for valid reasons, such as a burglary or fire or flood, clients are unable to produce these documents.'

Tom Smith
17th June 2007