Bounce Back Loan Fraud
According to This is Money’s article over the weekend (link below) the main banks have started freezing bank accounts which are linked to suspected fraud and where this exists, bounce back loans are being terminated and demand for repayment issued.
When it comes to seizing cash held in businesses’ bank accounts, the article states that “in most cases, money is not being clawed back from business bank accounts until after the suspected fraud has been investigated”.
It will be interesting to see further information on this matter and official policies. If business accounts are being frozen but it then transpires there isn’t any foul play – this will no doubt hamper businesses being able to trade through an already difficult period.
You would like to think that taking such a serious action to freeze an account in the first place would be backed up by strong evidence of fraud. I would be curious to find out what the scenario would be if it is clear that such evidence was easily apparent at the time the bounce back loan was applied for and whether this would invalidate the Government’s guarantee if the bank ought to have known that it was a fraudulent application.
It was publicised last year that the National Audit Office considered up to £26billion of taxpayers money would be effectively lost through non-payment of bounce back loans, whether that’s businesses defaulting on repaying their loan or outright fraud.
Hopefully there will be very few instances of businesses having their accounts unnecessarily frozen on suspicion of fraud that transpires to be wrong. Conversely, it is hoped that all those who have defrauded the taxpayer through the bounce back loan scheme will be brought to appropriate justice.
If your bank has taken action against your business which you dispute – take appropriate professional advice ASAP. At Ideal Corporate Solutions we work with a number of specialist solicitors who can help on short notice so please don’t hesitate to get in touch.
You can contact either of our licensed insolvency practitioners directly as follows: -
Andy – 07812 338252 or email@example.com
Tom – 07795 196619 or firstname.lastname@example.org
Link to the article