The Importance of Affordability
Anyone who falsifies their affordability statement with the intention of not paying is committing fraud by false representation
The concern that businesses may have is that if a customer completes an affordability statement as opposed to being credit checked, there is a chance the customer will exaggerate income and play down their outgoings.
The customer is legally required to enter accurate information when completing an affordability statement. A customer who falsifies this information to gain something which may cause a loss to another is committing fraud by false representation. The form the customer completes requires them to check a box confirming that the information they have provided is true. Therefore, it really is in the customers’ best interest to be truthful when completing the statement.
It is a good idea to let the customer know that it is important that the information they provide needs to be a true reflection of their circumstances, as this not only protects you, but them as well.