Auto Loan Fraud Is At An All-Time High. What You Need To Watch Out For
A recent National Consumers League study found that auto loan fraud is at an all-time high. This is especially true in states that have enacted severe punishment for car title fraud. If you’re wondering how to apply for a personal loan to cover your new vehicle then it’s vital you first learn how to protect yourself and ensure you’re not suspected of attempted fraud when applying.
What is auto loan fraud?
Auto loan fraud is a serious problem in the United States. It is a financial crime involving obtaining an auto loan by lying or deception. Auto loan fraud can include making up false information about your income, assets, or credit history. This can lead to you being approved for a loan even if you are not actually eligible. Auto loan fraud is also known as “auto loan abuse.”
Why is auto loan fraud on the rise?
Auto loan fraud is on the rise, and with good reason. The average auto loan is $27,000 with an average APR of 8%, and that number only goes up. That’s a lot of money, especially now when inflation is at an all-time high and income levels stagnate. If you’re trying to get an auto loan, make sure you’re fully qualified.
How can you avoid auto loan fraud?
There are a few things you can do to keep yourself safe when it comes to auto loans.
Here are some tips to help protect yourself from auto Loan fraud:
- Always use a credit score service to check your eligibility for a car loan. This will help you avoid being approved for a loan if you don’t actually qualify.
- Always disclose all of your information accurately when applying for a car loan. Don’t try to hide anything – the more information you give the lender, the less chance there is of fraud occurring.
- Pay your bills on time and in full. This will help build your credit history and make it harder for someone to commit fraud against you in the future.
- Use caution when dealing with strangers – always be suspicious if someone offers to help you get a car loan without properly introducing themselves first. There’s no guarantee that this person is just trying to do you harm!
- Educate yourself about auto loan fraud and how to protect yourself from it – this will help keep you safe while obtaining the financing you need for your new vehicle or investment property!
What should I do if I’m accused of auto loan fraud?
If you have been accused of auto loan fraud, it is important to contact an attorney as soon as possible. Fraudulent activity with a car loan can lead to serious penalties, such as jail time and financial ruin. Speaking to an attorney can help protect your rights and clear your name if you are innocent.
The bottom line
Awareness of the risks associated with auto loan fraud is essential. By following some simple tips, you can help protect yourself from this type of fraud.
