Lenders could be hiding fraud losses
Share
Both Chelsea Building Society and Bradford & Bingley have recently made fraud provisions of £41m and £271m respectively but experts warn that other lenders could be hiding fraud losses on their balance sheets.
Nationwide group director Matthew Wyles, who warned the industry on newbuild buy-to-let lending in 2005, says lenders may not want to make their fraud problems public. He says: "I suspect a lot of big cases have come out but they have been quietly absorbed by the lenders who have sustained those los-ses. A lender such as Chelsea could not hide those losses but I am sure those that can have absorbed these fraud cases into their bad debt provisions and the like."
City of London Police economic crime directorate head detective chief superintendent Steve Head says: "I do not think we are seeing the full picture. Lenders hit by the crime usually see it first. It would be good if the lenders were coming forward more than they are at the moment."
If you enjoyed this article, sign up here to receive daily email updates from Money Marketing and Follow @_moneymarketing
