Author Topic: Lying on Credit Card Applications  (Read 13044 times)

Kate

  • *
  • Posts: 4
Lying on Credit Card Applications
« on: Jun 11, 2010, 05:20:07 PM »
I applied for a credit card about 6 years ago and moved the balance around every year to get the best interest.  Every time I tried to cancel the previous card I was persuaded into to keeping it by the CC companies.  To cut a long story short,  I gradually used most of the credit available to me and for the past 2 years I have been struggling with my debt.  I am now considering bankruptcy.  My concern is that I lied on my applications, saying that I was working when I wasn't.  I still don't work due to my having young children.  What will happen to me when I get found out as I'm sure I will, because they ask for the last date worked on the bankruptcy forms.   Will I go to prison?
Please, please help I am at my wits end and absolutely mortified by what I have stupidly done.

Sovereign

  • Sr. Member
  • ****
  • Posts: 81
Re: Lying on Credit Card Applications
« Reply #1 on: Jun 14, 2010, 10:13:16 AM »
Hi Kate,

Your situation is a common one in that you invariably keep the old credit card when doing a balance transfer to a new one. This is the most common way of placing yourself in a financial situaiton from which you simply cannot recover. If bankruptcy is the appropriate option, then you have to take it and the sooner the better.

With regard to the incorrect statements that you have made on the application forms, I do not think that you are alone nor do I think that you will go to prison! However, I am not qualified to give you an indepth answer. Why not go to a Solicitor, opt for thier legal aid interview for a tenner or whatever it is and ask them the question. They will be able to point you in the right direction.

Steve
Sovereign Consulting

Steven Jackson

  • Hero Member
  • *****
  • Posts: 281
Re: Lying on Credit Card Applications
« Reply #2 on: Jun 15, 2010, 01:05:26 PM »
Hello there Kate
 
Let me first re-assure you that you will not go to prison! Credit and Debt is governed by civil law. This means that if you get into debt for whatever reason and can not repay what you owe, it is NOT a criminal offence. As such, you can not go to prison.
 
The only time when prison is linked to debt is in really serious cases of council tax avoidence. But you have no reason to worry about that.
 
In terms of the information you gave on your credit card application forms, as Sovereign says, you are by no means the first or the last to have done that. I have worked with many people over the years who have been in a similar position. If you have been economical with the truth about your financial circumstances, this will not effect the outcome of your bankruptcy.
 
The only time there is ever an issue is when someone borrows money that they have absolutely no intention of repaying. This is fraud. In your case, there is no fraud because you always intended to repay what you borrowed. The fact that you do not have the means to do so is not fraudulent. It is simply unfortunate.
 
If you think bankruptcy is right for you I would not be in the slightest bit concerned to press ahead with it. However, before making the finanal decision, I would advise that you discuss your situation with a debt management expert to make sure you understand all the options and pros and cons.
Debt Expert
ivainformation.com

ajgraves

  • *
  • Posts: 6
Re: Lying on Credit Card Applications
« Reply #3 on: Aug 20, 2010, 08:15:55 PM »
Hi Kate,

I recently read another story about lying on credit card applications and once again it was about if the applicant was working.

Without looking further into the matter its hard to say exactly what can happen but working within the insurance industry i can tell you that it will be more than likely that once you are found out to be lying the lender will notify every other credit lender about their horror story.

Closing a credit card is hard to do due to the agents not being willing to take your request and offering you other deals but you have to have the self control to stay strong or simply cut the card up. That way the balance is zero but if you have something that needs paying soon and your in trouble, you could register the card as lost and get another issued in time for the payment date.
http://www.valueofadollar.net - Get free debt help

solvemybadcredit

  • Full Member
  • ***
  • Posts: 21
Re: Lying on Credit Card Applications
« Reply #4 on: Oct 31, 2010, 01:33:12 PM »
I think that lenders consider it as FRAUD I am afraid, and will notify the credit reference agencies who will then feed back the information to the rest of the financial world. I don't think you really considered the consequences of your actions when you made those applications, although it could have come up with the employment verification if the lenders applied it properly.
I help people sort out bad debt.
http://www.solvem

Steven Jackson

  • Hero Member
  • *****
  • Posts: 281
Re: Lying on Credit Card Applications
« Reply #5 on: Nov 01, 2010, 06:48:19 PM »
I am afraid I do not agree with you here solvemybadcredit. It is fraud only when you borrow money that you have no intention of repaying. This is clearly not the case with Kate. Of course the lenders will notify the credit reference agancies regarding non payment however, this is an absolutely standard process and happens in all cases where people can not repay their debt.
 
I have been dealing with similar cases for the past 12 years and cdertainly there has never been any question of any of the creditors suggesting the borrower has acted fraudulently. Kates actions certainly would not prevent her from declaring bankrutpcy.
Debt Expert
ivainformation.com

solvemybadcredit

  • Full Member
  • ***
  • Posts: 21
Re: Lying on Credit Card Applications
« Reply #6 on: Nov 01, 2010, 10:16:30 PM »
I did not say it would prevent her declaring bankruptcy, Steven.  ???

But from the bank's prospective (I worked for them for over 5 years in lending) it is application fraud.
Not as serious as taking out credit on somebody else's name, but if you look at the DPA statements
before applications or apply on the phone they clearly say: "If false or inaccurate information is provided and Fraud is identified we will feed these details back to CRA-s to prevent fraud."  ::)

Check with any lender.
They all get reported for sure. Although I do agree that the bank has the responsibility to check the information is correct.

Although when creditors spot Fraud they keep it quiet from you and your client, too. But CRA-s will know.
I help people sort out bad debt.
http://www.solvem

Re: Lying on Credit Card Applications
« Reply #7 on: Nov 02, 2010, 10:30:11 AM »
Hi Kate
 
Im sorry to hear about your situation, but I would ask have you considered all of your options there are too few details regarding your circumstances but bankruptcy might not be your best option.
The focus has been on your application. But you must now focus on the future as Steve said earlier speak to a debt advisor there may be other options which would prevent the exagerated application coming to light.
 
Let us know how you get on
Gareth   
South West Debt Solutions.
www.CreditSolutionsSout

James Falla

  • Hero Member
  • *****
  • Posts: 655
Re: Lying on Credit Card Applications
« Reply #8 on: Nov 03, 2010, 04:57:38 PM »
I think if we consider Kate's origional question, she was worried that she might go to prison because of the false information she gave on her credit card applications. I think we can all agree that this would not be the case.
 
In terms of moving forward, given Kate is unable to pay her debt, she is likely to get default notices registered against her credit file. As such her credit rating will be effected whatever happens and really should not be the main focus of attention.
 
I agree with Steve and Gareth that before going ahead, she should speak to a debt advisor about whether bankruptcy is the right solution. However, given she is not working and therefore probably has a very low income, I would assume that bankruptcy may well be a right option to consider.
Debt Expert & Author
beatmydebt.com

solvemybadcredit

  • Full Member
  • ***
  • Posts: 21
Re: Lying on Credit Card Applications
« Reply #9 on: Nov 03, 2010, 09:56:31 PM »
No, she's not going to prison, and I do agree: the bankruptcy sounds a reasonable solution, from the information provided.
I help people sort out bad debt.
http://www.solvem

James Falla

  • Hero Member
  • *****
  • Posts: 655
Re: Lying on Credit Card Applications
« Reply #10 on: Nov 04, 2010, 04:49:28 PM »
I do worry sometimes that even in this day and age, people are still worried that they might wind up in prison because of debt. It is important to reassure people that this just not going to happen. Really the only way prison could be even suggested is if people continually refuse to pay legitimate Council Tax bills. However, it must be stressed that this situation is extremely rare. You certainly would not come accross anything like it where any other debts are concerned.
Debt Expert & Author
beatmydebt.com

jazzalbart

  • *
  • Posts: 3
Re: Lying on Credit Card Applications
« Reply #11 on: Jun 20, 2012, 10:33:47 AM »
 Lying on a credit application purposefully is fraud. It's not just lying about your income on a credit application that can land you in big legal trouble. Anything that misrepresents your ability to make your credit card payments could put you in prison as well.

James Falla

  • Hero Member
  • *****
  • Posts: 655
Re: Lying on Credit Card Applications
« Reply #12 on: Jun 22, 2012, 10:49:56 AM »
I have to dissagree with you on that jazzalbart. Giving false information on a credit card application such as the amount of debt that you have or the amount of income you have will (rightly or wrongly) very rarely land you in any trouble whatsoever. In the 15 years I have been working with people with debt problems, I have never heard of a single case where someone has gone to prison for giving false information on a credit card application. Do you have any examples? I would be interested to read about them if you do.
Debt Expert & Author
beatmydebt.com