Rise in motor finance 'fronting'

The number of cases of 'fronting' when buying a car has increased, according to figures.

The Finance and Leasing Association (FLA) says it has seen an increase in the crime, which involves an individual with a good credit record applying for motor finance in place of the real driver, who typically cannot getcar insurance or has a poor credit score.

However the FLA also warns that the practice is often an organised crime, with criminals using a stolen identity to secure the finance agreement.

Companies assess the risk of providing finance to a driver based on their credit record as well as their driving record. A driver who has previously committed a motoring offence or cannot get insurance poses a risk to lenders and may be turned down.

However, despite the rise in 'fronted' crime, the value of all motor fraud cases in the third quarter of 2010 was £3.1 million, down by 17.7% on the same period last year. There were 188 cases of motor fraud in the third quarter, a drop of almost 24% on the same period in 2009.

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