UK Removes COVID Loan Guarantees Over Fraud, Exposing Lenders
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UK government has removed guarantees on nearly £1 billion in COVID business loans, leaving lenders exposed to losses.
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Guarantees removed due to errors, duplicate loans, fraud, and other violations of loan scheme rules.
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Bounce Back Loan scheme was most controversial, designed to lend money quickly with limited checks.
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Evidence shows widespread fraud in the loan schemes, with suspected fraud now totalling £1.7 billion.
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Lenders warned government about fraud risks with Bounce Back Loans before launch, but government proceeded anyway due to pandemic emergency.