Lying in the loan application – what is the threat?
Online loans are so popular mainly because of their wide availability and ease of obtaining. An additional, very positive attribute of payday loans is that they are the fastest forms of financing on the market – available almost immediately, in 15 minutes.
In order to achieve this effect and gain customers, loan companies had to get rid of all unnecessary formalities and, instead of loans for certification, issue loans for statements. This form may lead to abuse, but not on the part of a non-bank institution but a client who, for fear of rejection of a loan application, may distort the reality of his actual financial situation. What threatens such a borrower if the truth comes out?
Certificate and statement – how is it different?
The belief that non-bank loan companies do not require adequate creditworthiness is incorrect. The snag is that due to the reasons mentioned above, the method of verification of this ability has changed. Therefore, loan companies differ from banking institutions, which require credentials of income to be able to grant a loan. Such a certificate must be issued and certified by the authority that pays salary – it can be a certificate from the workplace, a decision to grant a pension or to collect a pension issued by a ZUS branch.
Such certificates in private companies are not required because they would take too much time. Instead, you practice loans based on a statement, i.e. a written income statement from the borrower in your loan application. The lender himself enters from which source he derives his income (there may be several of them – check on which income you can borrow) and in what amount they are.
Some companies will check this information using the Kontomatik or Instantor applications – the account statement will also be downloaded when verifying the customer’s identity. Other companies that are still practicing verification transfer will believe the customer for a word and only in special cases ask for a scan of the relevant document. This means that some clients may lie about it and receive a loan.
What happens if I overstate my income?
Lying is not always short, and you can count on luck due to the fact that loan companies process many applications a day. What’s more, their analysis is fully automated and hardly ever a company employee deals with the application. Therefore, distortion or coloring may not come to light in very rare cases. Most often, however, truth comes through one of the following reasons:
As you can see, there are many situations where a lie may appear. You also have to remember that lies are best liked by accident – so don’t risk it. The more so that if a false statement is detected, the loan agreement will be terminated and the money will be immediately requested. It also faces criminal liability.
Legal basis and consequences
The legal consequences that a borrower will have to bear are not about making a false statement. In order for them to be so, the borrower would first have to be warned that this is punishable. In addition, this complaint does not apply to private loans.
“Who, in order to obtain a loan, bank loan, credit guarantee, subsidy, subsidy or public order for himself or another person, submits false or untruthful documents or unreliable written statements regarding circumstances that are material for obtaining such a loan, bank loan, loan guarantee, subsidy, subsidy or public contract, shall be punishable by imprisonment from 3 months to 5 years. “
Interestingly, a loan company can also be punished if the lie detects, but fails to notify the relevant institution, e.g. the police (Article 297 § 2 of the Criminal Code). So you can be sure that the loan company will not hesitate if it detects such a lie – it will avoid punishment, but it will also have more room for maneuver when it comes to recovering money from the loan.
Why is it not worth lying to the application?
If someone is not convinced by the heavy legal consequences that will have to be faced, if the lie comes to light and is convinced that “it may not seem”, then perhaps financial matters will appeal to him better.
Taking a loan when you do not have enough money to pay back (which is how you need to inflate your income) is the first step towards financial ruin. Loan repayment is a long process and the debtor may be able to avoid repayment for several months, but you should know that after that time the costs will be huge, often exceeding the loan amount.