Falsifying documents is a serious offence that carries major consequences. The consequences include legal, ethical and even practical penalties. It may seem like an easy way to get the funds you need for your next project, but it is important to understand the implications of doing so.
Why do people falsify documents
People falsify documents largely to get the loan the need. It may be because
- People otherwise wouldn’t qualify for the loan they need
- People don’t have a job or the income they need to get the loan amount they are seeking
- They are a temporary resident and lenders will only accept a permanent resident or Australian citizen
- People have bad spending habits such as gambling they need to cover up
- People have poor credit history and a poor history or meeting obligation
Though these are the common reasons of why people falsify documents, there are always other drivers involved.
How is falsified documents detected
Whilst I wouldn’t share with you how falsified documents are detected to help you avoid detection, we can share that experienced eyes and ever improving technology ensures that falsified documents are detected and offenders are caught. It is important to note that names and details of those falsifying documents may be shared amongst institutions and brokers to avoid other lenders and broker putting forward an application which they shouldn’t.
Legal consequences
Laws vary per state but being charged with fraud is considered a serious offence. Impacts to your life could include
- Criminal charges
- Loss of licence (for mortgage brokers)
- Record on police reports (which may impact future jobs who conduct police checks)
- Inability to get insurance (as insurance providers typically don’t lend to those who have been charged with fraud)
- Inability to get further financing from any lender
- Immigration consequences
- and more
Practical Consequence
The practical consequence is something that is often overlooked. At it’s core, the reason why you need to falsify documents – especially when it comes to securing loans – is to qualify for a loan you otherwise wouldn’t qualify for. So if you are getting a loan you shouldn’t be getting then you would
- Struggle to make repayments
- Not have enough funds to live a meaningful life
- Not fix any bad habits that you may previously have
So practically, even if you were able to secure a loan using falsified documents, you wouldn’t be living a comfortable life as all your money, time & energy would be directed towards the loan. This is something people often overlook.
Real life example
NAB – one of the Big 4 Banks in Australia – was recently caught in writing over $150 million dollars in loans based on false documents. It is stated that there was a few partied involved – including someone at NAB, mortgage brokers and more. Some people may laugh at this situation, but reality is, if a bank looses $150 million dollars then customers of that lender could potentially incur higher fees, higher rates and more costs to cover this loss. So falsifying documents has wider implications than only for those involved.
Conclusion
Falsifying documents may seem like an easy way out to whatever solution you are in but you will always get caught and the consequences are always more dire than doing things the right way – no matter how hard it may be. The first step is to understand the reason as to why you believe you cannot get finance the legal route and take action to fix those issues.
- Credit history problem -> Seek a credit repair agency
- Income issue -> Seek a lender who better understands your situation
- Residency issue -> Seek a broker who can connect you to specialised lenders
- Gambling issue and poor bank statements -> Seek Gamblers Help (1800 858 858)
