What is Asset Conversion Fraud?
Asset Conversion Fraud is one of several Cifas Fraud Types – specifically where a customer sells goods (usually a vehicle) acquired on finance that have not yet been fully paid off. Legally he/she does not own the item until it has been fully paid off, and should the lender need to Repossess the item as a result of missed payments, it would not be able to do so.
Cifas members record and share information about suspected frauds between themselves to combat crime and to keep the cost of credit down for consumers.