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BBL Fraud. Will they care?

As long as the loan is repaid, will they care?

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Had a few clients mention they took £40-50k BBL's and used it personally. It sounds like a lot of people have done the same, buying cars, houses etc. As long as the business continues and repays the loan, is the bank likely to care?

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By ireallyshouldknowthisbut
14th Oct 2020 16:35

Surely you mean "ex-clients?"

How does this square with your professional ethics and MLR responsibilities?

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By lionofludesch
14th Oct 2020 16:41

My experience is that no one ever cares until the loan isn't repaid.

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Replying to lionofludesch:
By Paul Crowley
14th Oct 2020 17:44

Waste of resource to worry about a serviced loan

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Replying to Paul Crowley:
By chrisacc1985
14th Oct 2020 20:21

Agree with above, this is potentially fraud and accountants should consider AML requirements

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By atleastisoundknowledgable...
14th Oct 2020 16:54

No. The only people likely to care are HMRC when they have to pay their guarantees.

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By Justin Bryant
14th Oct 2020 17:27

I doubt the bank gives a monkey's one way or another as it's secured regardless and has no risk/problems to speak of either way, but HMG will no doubt be delighted at the prospect of what amounts to essentially a gift back to them of their own rather generous gift.

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By Lee11_1989
14th Oct 2020 17:42

Everyone is suddenly talking about BBLs. I assume because they are heavily in the press at the moment.

Doubt the bank has the manpower to monitor everyone's spending to be honest.

The rules were entirely black and white anyway. For example, you could use the money to cover personal living expenses. A client asked me if he could get a loan and increase his monthly drawings from £2,500 to £4,000 because his wife had been made redundant without redundancy pay. He's a sole trader so tax isn't an issue, but I couldn't answer his question definitively one way or the other.

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