Lying on credit card application. Is it illegal?
If you lie about income on a credit card application what is the worst that can happen? Would that be breaking any laws or is that considered fraud? What are the penalties and consequences for someone lying about income?
The credit card application is not very clear at all about what "household income" is. What if a young adult was unemployed and lived with his parents, does that then mean he is allowed to claim his parents combined income on his application since it is the "household income"?
Since you are asking what is the WORST that can happen, I'll tell you right now it's prison. Usually that isn't going to be the case, but since you are asking the worst, I'm being honest up front.
I'm sure you read on the small print (at least I hope) warnings about anything you write are not to be fraudulent, at least to the best of your abilities. Lying on your applications can come back in many ways down the road. Let's say for example you end up owing a lot of debt. Generally you wouldn't go to jail just for debt, though if it's a government debt then they do get special powers and this could be a possibility in some extreme situations. There is an exception though to non-government debts. If you LIED.. or were deceptive in any way.
This is because the creditor can now show the courts documentation of fraud, and as you know, fraud is in deed a crime. Fraud is fraud, is fraud, is fraud. There is no way around that. If you owe something like 2 dollars though, you probably won't even have to worry about anything to do with courts since it is not going to be worth the company's (or states) time, effort, and money to get after you. Even if you did owe a lot, if you don't have the assets to return the debt, they may not go after you. Unless of course, they wish to make an example of you for others, which is known to happen with many other corporations.
Let's look at it this way, if you owed a debt (legit) to a bank and failed to be able to repay, this is much different than oweing a debt that you gained credit for by fraudulent means. The difference would be comparing a misdemeanor to a felony. Not that I'm trying to say a legitimate debt would get you a misdemeanor.
Also be advised that many people consider lying on applications synonomous to being a (flake) or a (low-life). When they are successful in gaining credit that they should not get, there is a tendency to over-spend, and not recover. This puts both the creditors, and all the other legitimate card-holders at penalty to over-come the faults of the undeserving.
Lying on mortgage applications. Lying on credit card applications. When does the greed stop? It's easy to blame Wall Street, Republicans, insert scapegoat of your choice here. When will Americans begin taking responsibility on the individual level for the deceit, cheating and fraud that this economy has become?