30

BBLS 100% guarantee reduces lender incentive for fraud recovery efforts

Conclusion
The Department explained that the first and primary responsibility for chasing fraud remains with the lenders. Due to the 100% guarantee provided to lenders under the BBLS, the incentive is not there to recover fraudulent loans. The Department has, however, worked with lenders to recoup some of the losses.49
Source
Committee Public Accounts Committee
Inquiry Work of the Department for Business and Trade
Report 34th Report - Department for Business and Trade Annual Report and Accounts 2023-24 25 Jun 2025 HC 818
View on Parliament website
Addressee Bodies
HM Treasury
Timeline
Recommendation age 0.9 yr
Report published 25 Jun 2025