Source · Select Committees · Public Accounts Committee
Recommendation 30
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
Government Response
A response document is linked to this report, dated 18 September 2025. Response attribution to this conclusion has not been verified. Read the response document ↗