Loans and credit are an every day part of American life. Most of us fill out loan applications and take out lines of credit without giving a lot of thought to the legal implications of doing so.
Yet when you take out a loan you are engaging in a legal process, and there are certain actions that you could take that could get you in trouble with the law.
Lying on a Loan Application
When you lie on a loan application you can be charged with fraud. For example, the FBI investigates cases wherein borrowers misrepresent their income or assets to obtain a home loan.
While they typically go after larger loan fraud schemes the truth is you are committing fraud any time you get money under false pretenses. Arrests have happened in the past. Many mortgage loans are federally insured and so lying about them is often prosecuted as a federal crime.
Common lies include exaggerating income, failing to report other debts, false employment information, inaccurate residency information, and undervaluing other assets to qualify for a lower loan rate. If you take it a step further and provide false documentation as to your income or assets then it can be even harder to defend your case.
Misusing Loan Funds
Misrepresenting the purpose of a loan is another way that you can get into trouble. For example, if you take out a business loan and then turn around and use that loan to make home repairs or buy a new car you could get into serious trouble.
Whether or not it will be treated as a crime may depend on the terms of the loan and whether you made promises about how you would use the money. If your loan has a specific purpose you should usually assume that you cannot use those funds for any purpose other than the one outlined by the loan agreement.
Even when you take out a personal loan, the purpose of that loan can impact your terms and interest rates.
Have you gotten into trouble with a loan?
If you’ve made a mistake while taking out a loan and are facing criminal charges then you’re going to need help from a qualified criminal attorney.
Our team handles fraud, white collar crime, wire fraud, mail fraud, and other crimes that you can be charged with in the event that you lie on a loan application.
Contact Koch Law to get the help you need today.