A lot of fraud with social loans in Belgium

Three quarters of the providers of social loans in Belgium commit fraud, in total 1 in 6 loans is granted completely unjustly. The fraud came to light through an investigation by the Ministry of Social Affairs.

The Minister of Social Affairs said in a press conference today that the entire sector must be thoroughly overhauled and that there is a lack of professionalism. During the press conference, the minister also cited some examples, such as a social loan for a house with a value of almost 390,000 US dollars, according to an article in the Belgian daily newspaper De Standaard.

The providers of these social loans also seem to sprinkle with money, for example, an art collection was purchased for 50,000 US dollars and generous salaries and fees are paid to those involved. These loan providers benefit from the guarantee that the region provides for these loans and they can then benefit from a favorable tax rate.

Social loans have made it possible for low-income families to borrow money if the borrowed money is used to purchase or remodel a "modest" home.

Published September 22, 2009 at 2:31 PM by the editors .

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