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Borrowers are using fake payslips to get bigger mortgages

18 June 2007
There are an increasing number of websites offering ‘fake’ payslips to people so that they can take out bigger mortgages and loans, warns the Institute of Payroll Professionals (IPP).

The IPP says that these websites are providing ‘duplicate’ payslips, without carrying out checks on the information provided by customers. “These websites can not legally verify the details provided by consumers looking to buy fake pay slips as the only official parties who would prove salary information - the payroll departments of their employer and the HMRC - are bound by the Data Protection Act,” warns the IPP website.

Members of the IPP say that the practice of buying payslips in order to borrow huge amounts of money, which in many cases, they say, will never be paid back fully, ‘opens the floodgates’ to serious fraud and increased consumer debt.

The companies that are providing these ‘fake’ payslips say that there are often valid and perfectly legal reasons why people may need to get another copy of their payslip, for example, burglary, fire or flood could mean they have been destroyed and need replacing legitimately.

But Maurice Cheng, CEO of IPP, is not convinced. He said: “To provide a payslip to someone where you have no proof of their earnings has to be deemed fraud.

“There are websites that claim people can buy replacement payslips for those that are damaged or lost but the IPP wants better monitoring of these providers to protect consumers and loan companies alike.”

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