Borrowers may be borrowing money fraudulently
According to recent reports a number of consumers in the UK may be taking out mortgages and loans fraudulently through the purchase of fraudulent payslips that can be bought online. By purchasing these falsified payslips those looking for loans and mortgages can convince lenders that they are earning more money than they actually are, which can make a big difference to whether their application gets accepted or not.
This scenario also means that many people end up having to repay loans that they cannot afford to pay back, because they took out the loan on the understanding that they were on more money than they were actually earning. According to recent reports there are a number of websites that offer these payslips, and consumers find it easier than ever to get hold of a payslip that will convince lenders that they are earning more.
According to an official from the Institute of Payroll Professionals: '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.' Officials warn that falsified payslips are not a good idea because it means that the borrower may be able to take out more than he or she can handle, and this can lead to horrific debt problems and repayment difficulties.
However, those that run such sites have offered justification for the provision of these payslips, stating: 'Sometimes for valid reasons, such as a burglary or fire or flood, clients are unable to produce these documents.' Although there may be valid reasons for the provision of these pay details, the system appears to be getting abused by consumers that are desperate to take out a loan that they would otherwise be unable to get.
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