When the bounce back loan scheme was announced, some thought that the Government had not done enough to prevent fraudsters from getting their hands on cash they are not entitled to.
The National Audit Office have estimated that there was the potential for taxpayers to lose around £26bn from fraud / non repayment.
Fraudsters are using many ways to access these loans, one of which is to use a person’s identity to set up a limited company and apply for the loan. The fraud will not be discovered until repayment letters begin to arrive, by which time the cash is long gone.
Demand for the loans is also greater than originally anticipated. The total paid out is estimated to be £38 – £48bn, the original estimate was £18 – £26bn.
For more information on bankruptcy, liquidation, administration and all the other insolvency procedures, or to take advantage of our free consultation and business health check, please telephone Stella on 01377 257788, 1724 230060 or 01904 520116 and she will make you an appointment with one of our insolvency professionals at our Driffield, Scunthorpe or York offices. Meetings can be held virtually or in any of our offices whilst observing the socially distancing guidelines.