Those of you who have also been following Julie Goodwins Telephone Dilemma strand will be aware that the directors and some sales staff of BC Telecom have been found guilty of fraud. Well Done to Julie for convincing her MP and Herts Trading Standards that a crime had been committed, and let us hope that the perpetrators all get their just deserts for the financial stress and the worry they have caused to many innocent people.
It is important that the leasing companies involved are also brought to account as, without their backing and connivance, most scams would never get off the ground. It is too easy for them to take the money then try to pass the buck by saying they are not responsible for negotiating the retail price as thats a matter between the vendor and customer. Leasing companies do have a responsibility, as laid down in the Business Finance Code (para 3.7), to take reasonable steps to check that prices paid for assets being leased are fair and reasonable. Its obviously more lucrative for them to ignore this and take as much as they can get away with.
Its therefore important for everyone who has succumbed to any leasing scam to ensure that they complain loudly to both the leasing company concerned and to the Financial Leasing Association (FLA). The leasing companies wont then be able to claim as theyve done in the BC Telecom case, that they are not complicit with any fraud, nor will the FLA be able to say they are unaware that their members are not complying with the FLA Business Finance Code.