Ive seen numerous cases where fraud has taken place, cases where the consumer isnt even aware that fraudsters have taken their identity and engaged with credit companies borrowing thousands in the consumers name.
The problem is that with the advent of social media most people share too much personal information about themselves. I recently pointed out to one person that using their Instagram, Facebook, Twitter and Linked in accounts, i could gleam enough info to defraud them if i wanted to.
The cases i have seen also show that by the time the consumer becomes aware they have been a victim it is normally too late. They normally find out when its too late, when a County Court Judgment has been entered in their names.
So what can be done? well i wanted to flag up my thoughts both on how to deal with this if you are a victim, but also what the banks and creditors can do to protect themselves and their customers.
First, dealing with lenders, its far too easy to open a catalogue, i did so in under 20 minutes, i had over £1500 of goods sent to me, and the catalogue never spoke to me once, not once, they did everything by email. When i applied, there were no checks, no contact with my employer, nothing other than a check of my credit file. And therein lies the problem.It seems to me that there are only a handful of lenders which actually make it difficult for fraudsters, most online lenders are done in the blink of an eye, and the money is in your account. The information needed is minimal. I highlighted catalogues but in truth its wider than just catalogues.
So, it seems to me entirely possible to open an account if you are a fraudster without too much difficulty, and it only limited info. The creditor checking the consumers credit file on a fraudulent account will come up with nothing of concern, especially if the fraudster has done his homework.
There are ways in my view of getting around this, one such step could be for example to get the consumer to take a selfie on their smart phone holidng their driving licence or passport (if they have one) This could then by uploaded securely to the website of the creditor and retained on the file. It would at least act as an additional check. Equally, the post office does document verification, so do solicitors, why cant creditors seek certified id documents? Yes it may slow down steps and may result in credit not being advanced on the same day, but it would provide protection to both consumer and creditor.
So what can the consumer do if for example he or she has no idea about what has happened and the first they hear is from debt collectors or worst Court enforcement.
Firstly, id advise everyone to register for their credit reports with clearscore or Credit Karma or with experian or equifax. They provide alerts as soon as a new account is added or a credit search is carried out. They can provide an advance warning which can be a godsend.
If you do find that some horrible creature has taken out credit in your name, the first thing to do is report to Action Fraud and your local police. Secondly bring this to the attention of the creditor or debt collector. If court proceedings have been issued and a CCJ entered, then get some legal advice from a solicitor urgently as time is very much of the essence. Dont delay.
Once you have notified the creditor, you should ask for details about the debt, how it accured, when it was opened, how it was opened etc. A data protection act request should be made to the debt collector along with the original creditor to ascertain what documents they hold.
It is also beneficial to check your whereabouts when the account was opened, i dealt with a case which was successfully challenged back in 2017 when the first the customer knew about the account was when the Bailiffs turned up. They had lost their driving licence, they had reported it lost or stolen, and had thought nothing more about it. The licence had been found and used by fraudsters to open an account for finance with a bank. There was also a catalogue account that had been opened, goods had been ordered and sent to an address that the client wasnt living at. The accounts became delinquent and enforcement action had been taken. The client had in the interim moved from the address into a new property with a new job. A CCJ was entered against the client but they didnt know because they hadnt taken out any credit or applied for new credit. It was only when the HCEO tracked them down and attended their home that they became aware of the CCJ.
The client instructed me to deal with the matter, i contacted the debt collectors who refused to consent to the judgment being set aside, they claimed that it was the clients debt. To be honest, i wasnt surprised, aftercall they knew nothing about what had happened, they werent there when the account was opened, they had no knowledge of anything remotely related to the account.
I obtained details of when the account was opened, i sat down with the client and went through their movements on that day, it quickly became clear that the client couldn’t have opened a bank account and took out a loan in central London because the client wasn’t even in London at the time. We tracked the clients movement using her photos, credit card receipts, emails and online transactions and were able to show that the client had actually been in Birmingham on the day in which the account was alleged to have been opened, we had hotel details receipts, and 11 people who confirmed the client couldn’t have been in London.
We presented our evidence to the Claimant who initially refused to accept the position, however when the matter returned to Court, the Judgment was set aside and claim dismissed.
This case shows how important it is to preserve evidence , keep records and reciepts, even if they are by email or photographs.
I know the burden of proof rests with the Claimant, and i know that the client shouldn’t have to prove their innocence, but i can say with some certainty that without the evidence we had the CCJ wouldn’t have been set aside.
It is also important to highlight that if a CCJ has been entered, then time is of the essence, if an application to set judgment aside is needed you must apply promptly, hence why i suggest if you find out of the blue that you have a CCJ, speak to a lawyer and get some advice, urgently.