Attempting to obtain a mortgage or financing for any other purchase by providing falsified credit information is not only risky, it is illegal. Falsifying credit information or loan documents in order to obtain cash or financing can lead to serious civil penalties and even jail time. If found guilty of falsifying credit information, prison sentences can range from a period of months to years and fines can be upwards of £130,000 or more.
Other People Are Reading
Theft By Fraud
Attempting to obtain credit by inflating or falsifying information in regards to income can lead to criminal charges for fraud. Banks rely upon the information that is provided to the by the applicant in order to determine credit worthiness, interest rates and loan terms. Falsifying income to trick the bank into believing that your income is sufficient to qualify for financing is considered fraud and can lead to thousands of dollars in fines and jail time. Individuals who lie about an increase in income in order to receive credit line increases or additional funding can be charged with theft by deception as the increase may not have been approved without the falsified income. This can lead to jail time ranging from a period of several months to several years, based on circumstances.
Attempting to obtain financing by using the name or identity of another person can lead to charges of identity theft and fraud. Due to the rise in incidences of identity theft, in 2004 the federal government signed into legislation the Identity Theft Penalty Enhancement Act, which established identity theft as a federal crime punishable by up to 15 years in prison and as much as £162,500 in fines. Examples of fraud through identity theft include using another person's name, social security number or credit to open bank accounts; obtain employment; or obtain financing for real estate, cash loans or automobile financing.
Additional penalties that may occur due to falsifying credit information is the closing of existing bank accounts and the inability to open additional accounts for a long period of time. Once the lending bank determines that they have been defrauded, the applicant's bank accounts are typically closed and the person's name is put on an internal system used by banks to determine credit worthiness. This can make it very difficult to open another account, even in other banks in other states. Any loans issued on fraudulent terms can be recalled, and items obtained through the fraudulent loan can also be repossessed including cars, homes and lines of credit through credit cards and personal loans.
- 20 of the funniest online reviews ever
- 14 Biggest lies people tell in online dating sites
- Hilarious things Google thinks you're trying to search for