NACFB targets commercial fraudsters

The trade body said it had received a number of calls highlighting the practice of brokers purporting to be lenders or charging large, upfront fees without actually ever intending to help fund a proposal.

Adam Tyler, chief executive of the NACFB, said the practice was a throwback to the late eighties and early nineties and threatened the reputation of all commercial finance brokers.

He continued: "The Association takes a very dim view of these kinds of activities and is now forming a separate committee which will include members of the relevant authorities. The aim of this body will be to investigate any reports of fraudulent activity within our industry and to decide how to ensure that any illegal practices can be stopped.

"This will include working with the police, the Office of Fair Trading and government bodies, so that the reputation of the commercial financial industry is not damaged by the actions of a few."