CONTRACT hire and leasing companies have been warned to look out for bogus credit submissions from prospective customers following a rise in the number of fraudulent applications. AT&T automotive Services has identified a growing number of companies submitting false information on their credit submissions in recent months.

Some companies, particularly start-up ventures, are keen to 'improve' their balance sheets and trading histories in order to pass credit checks and gain access to vehicles which they consider vital to their growth plans. Other companies, however, have more sinister motives and are using false company documents to start contracts which they have no intention of fulfilling, planning instead to steal the vehicles.

Bob McKniff, AT&T automotive Services' credit director, said it was too easy for leasing companies to become complacent when business was active and customers were desperate for vehicles. 'For the sake of speed and efficiency we could rush the applications through and hope for the best. But it is extremely important to act with caution and ensure that bills can be settled,' he said.

AT&T's warning was the first to reach the British Vehicle Rental & Leasing Association for a number of years. A new survey of company directors by global information company Experian has revealed that almost 750,000 company directors had been involved with at least one failed company. Of those 202,000 were 'serial failures' with several failed businesses behind them.