Lend your name for someone's car loan? A Durban man got 5 years

If someone asks you to sign for a car loan in your name so they can drive the car, the debt is yours, and if false documents are used you can face fraud charges. A 60-year-old Durban man learnt that the hard way: he was sentenced to five years in prison for vehicle finance fraud after two cars bought in his name for other people were financed with fake salary documents (IOL).

What happened in the Durban case?

According to his guilty plea, the man was working as a driver and general assistant for two men in Durban. In 2020 they asked him to apply for finance in his name, saying they could not get credit themselves (IOL).

The applications were backed by a fake salary advice and bank statements showing him as an area manager earning R39,000 a month. The banks approved a R549,000 Porsche Cayenne through Standard Bank and a R577,000 VW Golf 7 R-Line through Absa (IOL).

The two men took the cars. He said he was promised an extra R10,000 a month that never came, and he never saw the vehicles again. He was arrested in April 2021, pleaded guilty to two counts of fraud and was sentenced by the Durban Regional Court in November 2025. The two men were not charged (IOL).

The prosecutor told the court the Golf was recovered in February. The Porsche is still missing (IOL).

Why is the person who signed the one in trouble?

Because the contract is in your name and you told the bank the information was true. Under the National Credit Act, anyone applying for credit must "fully and truthfully" answer the lender's questions during the affordability check (National Credit Act, section 81).

In his plea, the Durban man accepted that by signing the finance agreements he helped mislead the banks into approving the loans, even though he believed the other men would pay the instalments (IOL). That belief did not stop the conviction.

How common is this kind of car finance fraud?

It is growing fast. Banks reported 71,747 fraudulent vehicle finance applications to the South African Banking Risk Information Centre (SABRIC) in 2025, up 41% from 50,885 in 2024. The value of those attempts rose 43.8% to R28.3 billion (SABRIC Annual Crime Statistics 2025).

SABRIC says one of the main methods is applications built on false or manipulated identities and applicant profiles. It also cites a 2025 survey in which 26% of South Africans said it was sometimes acceptable to overstate income when applying for credit (SABRIC).

What should you do if someone asks to use your name?

Say no if the car, the payments or the paperwork will not be under your control. If you have already signed, or your ID was used without your knowledge:

• Check your credit report. You are entitled to one free report a year from each registered credit bureau, including TransUnion, Experian, XDS and Consumer Profile Bureau (Credit Bureau Association; NCR).
• Flag your ID. The Southern African Fraud Prevention Service (SAFPS) offers protective registration, which warns its member companies that your identity may be compromised (SAFPS).
• Contact the bank that holds the finance agreement and report any fraud to the police.

You can also call the National Credit Regulator on 0860 627 627 for help with credit questions (NCR).