A couple from Karachi scammed hundreds of car buyers by running a fake car financing business. A media report suggests that the fraudulent party, working under the name ‘Butt & Sons (Pvt.) Ltd.’ stole millions from the customers and fled from the city without leaving a single clue behind.
The company lured in car buyers by posting ads for their services on Facebook and OLX. The unique selling point of the company was that they promised a 5% interest rate to the customers looking to buy a car in installments, whereas the banks mostly offer interest at the minimum rate of 11%.
The process reportedly entailed the buyers having to visit one of the company’s three outlets; in Gulshan-e-Iqbal, Tariq Road, and DHA. Upon arrival, the applicants were requested to meet an inquiry office, who then asked various questions from the buyers such as their residence and professional details such as company, designation, nature of work, etc. Later, the customers were allowed to meet the manager.
Once the meeting with the manager concluded, the customers were asked to sign an agreement and make a fixed down payment in accordance with the payment plan.
“The verification process takes fifteen days to complete, starting from the day of the down payment and if any applicant cancels the deal before the start of verification then 26% will be deducted from his down payment,” said the agreement document.
The company was around for two years and has reportedly scammed hundreds of car buyers with their bogus car financing programs. Reportedly, fourteen FIRs have been filed against it in three police stations across Karachi. Seven FIRs were registered against the owners of the business at Aziz Bhatti police station, five at Ferozabad, and two at Defence police station.