UK Car Finance Groups Report a Surge in Motorists Seeking Loan Relief

As the coronavirus pandemic brings bad news to us every day, especially to the finance world. In the latest turn of events, UK car finance groups have been reporting an increase in motorists that are seeking relief on auto insurance loans during the coronavirus lockdown. This follows concerns about a wave of defaults across the insurance finance sector. Calls to UK insurance lenders have risen 20-30 times the normal levels. This news comes from the Finance and Leasing Association, the industry body for automotive finance providers.

 

Increased Customer Calls – Pressure on Insurance Providers

UK Insurance providers that offer motor, consumer or equipment loans experienced a 1,400 % increase in the amount of calls from worried customers who may be unable to pay their insurance loans; this was only during the first week of the UK lockdown. In the following week of the UK lockdown, volumes rose 200% and held constant in the third week, according to the Finance and Leasing Association. The head of motor finance at the Finance and Leasing Association, Adrian Dally, said ‘there has been a very significant percentage increase in call volume going into member companies’ and ‘this is causing very significant operational pressures.’ The increased pressure on UK motor loan insurance providers is just another of the bad news that the coronavirus lockdown has brought to the UK and to the world.

Relief Measures for Insurance Customers

Some UK car lenders have already started granting relief to motorists. Black Horse, one of the UK’s largest motor finance companies, said that it has already given more than 60,000 payment holidays. These make a considerable impact on people’s overhead expenses during the UK lockdown, and the extended period that the coronavirus will affect the world.

Fraudster Invents Daughter in £140,000 Bogus Insurance Scam

A prolific and serial insurance fraudster, Susan Pain, was jailed in 2018 for a bogus insurance claim worth £140,000. The scammer invented a daughter named Sophie, who she claimed was seriously injured during the 2017 Manchester Arena bombing. As a result of this fictitious daughter’s injuries, Pain claimed that she was forced to take time off work. The court heard that she had managed to claim £139,834, over the duration of the insurance scam. The callous fraudster was convicted to two years imprisonment and ordered to repay the amount she had defrauded.

Manchester Arena Bombing Scam

Following an Ariana Grande concert at the Manchester Arena, on 22 May 2017, a suicide bomber detonated an improvised explosive device killing 22 people and injuring 139 others. As a director of a firm that sold policies underwritten by AXA, Pain was an experienced insurance broker. However, her propensity for insurance fraud was uncovered with the made-up daughter. Known professionally as Susan Raufer, her former name, Pain made the fraudulent insurance claims in her own name. Yet, insurance firm AXA exposed her scam when they were unable to identify her fictitious daughter among the hundreds who suffered injuries at the Ariana Grande concert. The discovery of this scam exposed a web of lies, weaved by Pain over a seven-year period, comprising a number of insurance scams.

Fraudster Is Ordered to Repay Proceeds of Crime

The prosecution’s Christopher Hopkins argued that Pain had benefitted to the tune of £139,834 over the course of the scam. A confiscation order, targeting Pain’s house and pension, was made. With £88,134 being claimed from the value of the property and further sums to be seized from the perpetrator’s pension, when it becomes available. Under the Proceeds of Crime Applications, prosecutors are able to demand further cash, as it becomes available, regardless of the source of the income.