Is it illegal to lie on an a credit application?

Discussion in 'General Credit Card Discussion' started by Guest, Feb 8, 2005.

  1. Guest

    Guest Guest

    Well... is it?
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  2. wazzb

    wazzb Newbie

    Feb 2, 2005
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    0
    sure is, it is credit fraud. (especially if you are using a fake name!!!!!)

    Depends mainly on what information you falsely supply to a credit provider.

    If that information results in you accessing credit that you would not otherwise obtain, then you can get into all sorts of problems.

    Most credit contracts contain a clause that covers the discovery of incorrect information supplied by the applicant after credit has been given. You are essentially at that point in "Default" of your contract.

    For credit cards that could mean:

    1. Closure of the account and a demand for the full amount outstanding,

    and

    2. Cancellation of any reward points earned on the credit card.

    and

    3. Reporting to a credit bureau the default.

    In saying that many a white lie is told on credit application, so the onus rests with the credit provider to best assess the risk.

    Cheers
     
  3. johnsmith

    johnsmith Member

    Dec 5, 2004
    100
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    If everyone in Australia told the truth when applying for credit then i suspect that only about 1 percent of the population would own a television or have a credit card or a home loan. So long as you don't default with your credit provider then there is no problem with any amount of lies you tell.
     
  4. serfty

    Moderator

    Nov 16, 2004
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    If by lying on the application you gain a financial advantage, you may be liable to be prosecuted.

    Exactly what this prosecution might involve is related to the amount of financial advantage that you gain.
     
  5. Julie Williams

    Julie Williams Junior Member

    Feb 9, 2005
    17
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    Sydney
    Don't you ever read the fine print which is usually on the back page above where you sign. It tells you that you can prosecuted for fraudulent information - Der!!!!!! That means don't lie on the application!!!!!
     
  6. Guest

    Guest Guest

    So basically if you are paying the bills and not raising any flags you are fine?

    I guess the fraud factor is understandable in some circumstances.....

    Not saying I've ever lied or intend to on an application, the thought just crossed my mind... :)
     
  7. Deeruck

    Deeruck Junior Member

    Nov 10, 2003
    20
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    Disclaimer - I am reporting this from a memory not known for its reliability

    The wife of Carl Williams, the (alleged) hitman for Melbourne (alleged) underworld figures, has recently been imprisoned for credit card fraud. Do a Google search for the details, but I think it involved applying under a false name, then running up huge bills.

    Is that the kind of thing you were considering d00t? :lol:
     
  8. danielh

    danielh Member

    Dec 5, 2003
    352
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    Not sure the whole point of this discussion is about. Just use common sense.

    There will be some degree of lattitude on some questions and absolutely none on others.

    EG. Value of your Car or other Assets. This is a subjective valuation.
    Amount in Bank Account - You can work this out quite accurately.
    Last Name - I'd tell the truth on this one. :)

    Regards
    Daniel
     
  9. abcde

    abcde Junior Member

    Jun 10, 2005
    14
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    when i applied for my card years back.
    when i fillled in the question "average monthly spend" on your other cards...
    i wrote $2000
    and the lady at the bank tells me to change it to $1000..
    telling me.. if i write a lower figure.. it will improve my chances.
    is that lying?
     
  10. markis10

    markis10 Veteran Member

    Nov 25, 2004
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  11. bigjobs

    bigjobs Active Member

    Jun 4, 2005
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    do it, get caught, then prosecuted, found guilty and have a fraud conviction recorded against you.

    see how far you get in the business world with a fraud conviction. all for a 15 grand on a credit card ...
     
  12. Don't forget lying by omission - for instance a few years ago most forms had space for 2-3 credit accounts and no space for total credit so someone with say 4 CC's already could fill in the whole form include the 2-3 cards with the lowest limits - technically it wasn't a lie since nowhere on the form stated that you had to provide a total for all cards;

    Lie by omission - Yes
    Fraudulent behaviour that is prosicutable - Probably not.

    Of course from what I have noticed recently it looks like the banks (no doubt due to federal legislation) have changed to asking you for the total now.....
     
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