Benefit Fraud Traps

It is not if but when. They are coming to get you.

Credit agencies are used by banks, credit card firms and others to identify whether individuals have a bad credit history. Under the Government plans, the agencies will effectively be carrying out the process in reverse.

Work and Pensions Secretary Iain Duncan Smith has been told to draw up detailed plans for a benefits crackdown.

WHO’S WATCHING YOU?

Credit check: Agencies hold details

Credit reference agencies have a powerful role in determining who is granted mortgages, loans and credit cards.

The three agencies, Experian, Equifax and Call-Credit, hold a host of personal and financial information about every adult in the UK.

Shops, banks and building societies refer to their records every time a customer applies for credit.

This can include mortgages, personal loans, current account overdrafts, credit cards, store cards or when customers try to buy something on higher purchase such as a car or sofa.

Each person’s credit file contains information from the electoral roll, including name, address and previous addresses, as well as any court judgments, bankruptcies, or home repossessions.

Crucially, a person’s credit files also contain: details of all credit accounts held over the past six years and applications for credit in the past 12 months; how much credit the person has available; their record of paying off debt; and the size of their debts.

The benefit fraud investigators will have access to all this data, coupled with their wide-ranging powers to access bank accounts without the account holder’s knowledge, get information from the taxman, and instigate surveillance.

The crucial step is to approach the investigators, with expert legal help, before they come to you.

If you are worried that you have broken the rules, and want to stop a criminal prosecution or record consult the experts.

For more information or a free legal opinion telephone 020-7381-8111 (24 hour service) or email [email protected].