Exxagerrated Income on credit load application. Is it fraud and criminal and can be prosecuted?

[notgood]

Hi. I have just registered, although I have been on this forum many times over the years as a guest.

 

I am in a bad place, i feel embarrassed.

 

After my marriage broke down this year my ridiculous reaction to the stress and sorrow was to start gambling online and I am now in a position where I owe £30k. I have taken, all in the space of 5 months, 4 x £7.5k loans and have lost it all on a crazy impulsive online gambling spree.

 

I am absolutely disgusted at myself about this behaviour so please do not act on your urge to tell me how wrong this was. I know more than you can imagine.

 

I have never, i repeat EVER gambled in the past and I am a 52 year old man. I am not and have never been a gambler which is why this is even more difficult to make sense of.

 

I had zero debt just 12 months ago.

 

My question in this instance is this: Given the way this debt was taken out, ie in a very short period, spent on gambling (with the ridiculous hope of making losses back each time) and the fact that I exaggerated my income by about 25% in my loan applications, can this lead to a Fraud or criminal prosecution? I didnt lie about anything else, and I stated my other loans at each new application.

 

Can the banks or the official receiver (i will be going BR ) find this behaviour so wrong that I could be charged?

 

I understand that I will most definitely be having a BRU.

 

The use of the funds is clearly documented in bank statements. ie I didnt take loans out and cash them out or purchase things, or give to friends or go on holiday. It was all used on gambling over a very short period.

 

Please only reply if you are aware of English Law regarding fraud (if this is in fact fraud) and under which section of the Fraud Act? I really need some solid knowledgeable advice as I am extremely stressed.

 

I have been reading about S1, S2 of the Fraud Act and searching online but can not really find something clear to suggest whether this is something that, a) can be prosecuted, and b) is in fact prosecuted.

 

Some posts in other forums state that they have never heard of anybody being prosecuted for lying or exxageratin on a consumer loan application but I find that hard to believe? Why would the CPS have a Fraud Act and why would they not pursue it if a bank requested them to?

 

If anybody has been prosecuted please share your experience or some points, or PM me if you are not comfortable to post online.

 

If this is in the wrong forum please move to the appropriate one.

 

Thank you

 

Edited July 24, 2016 by notgood

[Bazooka Boo]

Have you spoken to your Dr about this?

 

I feel you need some professional help first.

 

How are you maintaining these payments currently?

And what sort of income do you get, ie. are you in work?

[Conniff]

Of course it's fraud, you intentionally misled in order to make a gain.

 

We get quite a lot of threads about 'irresponsible lending', this is 'irresponsible borrowing'.

[BazzaS]

 

My question in this instance is this: Given the way this debt was taken out, ie in a very short period, spent on gambling (with the ridiculous hope of making losses back each time) and the fact that I exaggerated my income by about 25% in my loan applications, can this lead to a Fraud or criminal prosecution? I didnt lie about anything else, and I stated my other loans at each new application.

 

.............

 

 

Please only reply if you are aware of English Law regarding fraud (if this is in fact fraud) and under which section of the Fraud Act? I really need some solid knowledgeable advice as I am extremely stressed.

 

I have been reading about S1, S2 of the Fraud Act and searching online but can not really find something clear to suggest whether this is something that, a) can be prosecuted, and b) is in fact prosecuted.

 

|

 

In answer to a) : it could be prosecuted. The actions and intent meet the requirements for a prosecution for fraud by false representation.

 

http://www.legislation.gov.uk/ukpga/2006/35/section/2

 

 

b) is way more complicated.

Firstly at least one of the loan institutions would have to become aware you had overstated your income, then report it to the police, who could investigate, and if after investigating they then passed it to the CPS, the CPS would have to find both of :

i) There is a realistic prospect of a conviction, and

ii) A prosecution is in the public interest.

 

https://www.cps.gov.uk/about/principles.html

 

The CPS guidance for a s2 Fraud Act 2006 prosecution is at http://www.cps.gov.uk/legal/d_to_g/fraud_act/

 

It is interesting that that page notes "Prosecutors should guard against the criminal law being used as a debt collection agency or to protect the commercial interests of companies and organisations."

 

So, as you have noted, it seems rare for the potential prosecution [question a)] to become an actual prosecution [question b)]

 

I hope this is a more useful reply than

Of course it's fraud, you intentionally misled in order to make a gain.

 

We get quite a lot of threads about 'irresponsible lending', this is 'irresponsible borrowing'.

Which only addresses question a), and I'm not sure it tells you anything you don't already know. You also asked for people not to be judgmental ....

 

I agree with the other respondent that you ought to be seeking medical help : the situation you describe suggests you may have an underlying process (perhaps depression?), and evidence of this may make it even more unlikely that you will be prosecuted, as well as you may be able to get help dealing with the problem.

[Conniff]

I hope this is a more useful reply than

 

The subject heading is Is it fraud ? and as answered before, yes.

 

Which is the same answer you gave

it could be prosecuted. The actions and intent meet the requirements for a prosecution for fraud by false representation.

Edited July 24, 2016 by Conniff

[BazzaS]

The subject heading is Is it fraud ? and as answered before, yes.

 

Which is the same answer you gave

 

You only answered question a).

You didn't address question b).

 

Also,the "tone" of the answers will be perceived differently (I suspect) by the OP. I hope the OP views mine as constructive.

The OP already feels bad about their actions.

[fkofilee]

Good Morning NotGood and welcome to CAG.

 

Im sorry to hear about the issue that you have faced and hopefully we can be off some assistance.

There is one thing I have learned over the last 5 years and that is that people do strange things when the pressure gets too much. They meltdown.

You are not the only one so you are in good hands.

 

As for your gambling issue I suggest you give these guys a call

 

http://www.gamcare.org.uk/

CONTACT US

Freephone: 0808 8020 133

 

They are specialist in helping with gambling.

As for your other questions. I would seek a discussion with your GP because its clear you may need support for other elements in your life./

Depression is a very difficult thing to deal with and has been known to fuel things such as gambling etc.

 

As for your query. Is going Bankrupt the best thing to do? You will have this attached to you for 6 years.

 

Yes the Stigma has gone with being Bankrupt but if you were to work hard, could you pay off these loans with time?

Were the loans with all the same company? If so, who were they?

[king12345]

I second other by saying that gambling addiction is as destructive as alcoholism.

Contact gamcare, gamble aware and your gp.

Also, unless they have changed the rules, you can bar yourself from the gambling sites by contacting them.

They are obliged to accept your bar and prevent you from playing in a moment of weakness.

Do that!

Useful info here:

 

http://www.gambleaware.co.uk/confidential-support-and-advice/self-exclusion

 

With regards to the debt, I have known many gambler who got their house and business repossessed, lied deeply on loan applications, got more money to gamble and ended up with thousands of pound debts.

They were never charged and fraud was not even mentioned at any point.

If you can't repay the debt you would have to take the bankrupt path.

That would mean no credit from anyone whatsoever for 6 years, but apart from that it's not as bad as it sounds.

You have to weight up your options with a clear mind, perhaps with the help of a friend.

Give us a bit more info about the debt affordability and whether you are a homeowner or have assets worth recovering from the bank.

Good luck

[citizenB]

Whilst you started the ball rolling with the untruth over your income - credit checks and other checks by the lender(s) should have identified that you were not financially sound to take on the loans.

 

 

As others have suggested - get yourself some counselling both for the gambling and the depression. There is no stigma attached to BR now.

[notgood]

i am thankful to everybody who has taken the time to respond to me.

 

I am so ashamed and disappointed with myself.

 

I actually cant stop crying reading the replies and wondering what took over me to make myself be in this position, for the first time in my life, so quickly.

 

I dont know why i am not able to deal with this either. i feel very helpless and physically ill

 

 

thank you

[BazzaS]

i am thankful to everybody who has taken the time to respond to me.

 

I am so ashamed and disappointed with myself.

 

I actually cant stop crying reading the replies and wondering what took over me to make myself be in this position, for the first time in my life, so quickly.

 

I dont know why i am not able to deal with this either. i feel very helpless and physically ill

 

 

thank you

 

Ever more reason to seek the help advised.

You certainly won't be the first person in a similar situation they will have seen. Seeking help isn't a sign of weakness, but of strength, so don't let any feeling of shame / embarrassement put you off seeking that help.

[king12345]

Don't feel ashamed, a lot of people fall for the evil gambling.

It's like a drug and triggers the release of chemicals in your brain similar to the ones released in smokers.

This is scientifically studied and accepted, hence all the stringent latest legislations about gambling.

So, as others said you're not alone, you're not a fool and you're not crazy.

Gambling got you in a moment of weakness but now you have recognised that you have a problem, you have taken the first step to recovery.

Keep going in the right direction, but you need help.

Call the people above suggested and bar yourself from the gambling sites.

Then you can start dealing with the debt.

[ericsbrother]

were you taking any medication for diseases such as Parkinson's Disease?

[notgood]

Hi. Sorry i havent replied. Just been trying to get through the week, extreme stress. Thank you all for your points.

 

I have taken your advice and gone to my GP and told her everything. she is helping me.

 

I have contacted gamcare and self excluded myself for 5 years from the site I was using.

 

ericsbrother no i am not, i think i know why you are asking having googled it now.

 

I have read in forums somebody suggest that if you can handle the pressure and are able to deal with creditors demands and DCA and also if you can deal with the inevitable County Court claims then there is no reason to go bankrupt. Is this accurate?

 

When i inevitably default on my 4 debts (4 loans) and if they subsequently apply for CCJ and I can prove that I can only afford an 'X' amount per month will the judge force the creditors to accept that amount? If instead of say £100 per month per loan I can only afford £15 per month per loan? Do the creditors have to accept that? Can the judge force me to go bankrupt or anything else if i cant possibly afford more?

 

thank you again

Edited July 30, 2016 by notgood

[obiter dictum]

I can sympathise with you as 8 years ago i was in the same boat. Mine was the local casino but the amounts a lot smaller. With me it was multiple payday loans. You need to accept that you are going to be screwed for the next six years with credit etc so Bankruptcy might be he best outcome to consider. This has the capability to drag out for many years and being hounded by debt collecttion agencies is not nice.

 

Taking out seperate 4 x 7.5 k loans is not that much in reality to these large financial institutions

 

Gambling is an addiction. Though you made a false declaration to attain funds you did not lavish yourself in flash cars etc so nothing to show. In my opinion i very much doubt credit companies will make an allegation of fraud to the police simply down to corporate sensitivty. They will simply write it off

 

But that is just my own opinion

[fkofilee]

Hi NG

 

A judge would never force you to pay more than you can afford. Things like Income and Expenditure come in handy.

[notgood]

Hi fkofilee, are you certain of this?

 

Do people think it is worth going through the process of defaulting, letters/threats and inevitable CCJ instead of bankrupcty? I know it can be stressful but stress asside is it a better or viable option to bankruptcy?

[obiter dictum]

Bankrupcy you can be discharged after 12 months.

 

There is nothng stopping a creditor waiting say for aother 5 years before taking you to court and getting a CCJ. You will then face a further 6 years in the financial wilderness. With bankruptcy all your debts are dealt with in one go.

 

I advise spending half an hour with the CAB or financial adviser but in your position i would go bankrupt, but that is me

[fkofilee]

Bankrupcy you can be discharged after 12 months.

 

There is nothng stopping a creditor waiting say for aother 5 years before taking you to court and getting a CCJ. You will then face a further 6 years in the financial wilderness. With bankruptcy all your debts are dealt with in one go.

 

I advise spending half an hour with the CAB or financial adviser but in your position i would go bankrupt, but that is me

 

Following on OD, Id agree with the whole bankruptcy element. Go see the CAB. Non judgemental advice and they will help you