NACFB steps up fight against commercial fraud

Tuesday 21st April 2009

The National Association of Commercial Finance Brokers (NACFB) has sent out a warning to anybody within the commercial finance industry that fraud will not be tolerated.

The warning comes following a growing number of reports of brokers potentially purporting to be lenders or charging large, upfront fees without actually ever intending to help fund a proposal.

Chief Executive of the NACFB, Adam Tyler, said that there had been an increasing number of calls to the NACFB head office from consumers complaining about certain brokers’ tactics.

Now the Association has made the decision to form a separate committee to investigate any reports of fraudulent activity within the commercial finance industry and to ensure that any illegal practices are stopped.

The committee is set to work with the police, the Office of Fair Trading and government bodies to ensure that the reputation of the commercial finance industry is not tarnished by fraudsters.

Mr Tyler said: “I have taken a number of calls in the last few months from consumers that feel they have been effectively ‘ripped off’ by individuals and companies representing our industry.

“The NACFB wants to investigate any complaints which are received about both member and non members. The Association was set up to combat advanced fees among brokers. The current difficult economic conditions have led some firms to demand large amounts of money for no guarantee of any kind of service from clients who are vulnerable because they are desperate for some kind of financial assistance.”

Adam Tyler continued: “The amounts involved in upfront fees can amount to thousands of pounds. The NACFB’s advice to the consumer who finds themselves in this situation is not to deal with a broker who tries this kind of tactics, but only to deal with NACFB members who operate within the Association’s Code of Practice.”