A crack down on car finance fraud last year saved the motor finance industry £123 million.
Finance companies’ efforts to combat attempted frauds at the application stage resulted in a 36% drop in the number of fraud cases reported in the final quarter of 2008, compared with the same period in 2007.
Finance and Leasing Association members reported that 10,500 fraudulent motor finance agreements were caught by screening processes at the application stage in 2008.
These agreements, if approved, would have resulted in loans worth £123,423,000 being granted to fraudsters.
New statistics released today by the FLA show the reduction in fraud was achieved despite an increasing proportion of car buyers using dealer finance.
In the last 12 months, 53.1% of consumers buying a new car used dealer finance, compared with 47% in the previous 12 months.