equifax instant verification feature

44 / J U LY 2 0 1 5 / W W W . N I A D A . C O M

44-49_UCD_07.15_Layout 1 6/19/15 8:01 PM Page 44

W W W . N I A D A . C O M / J U LY 2 0 1 5 / 45

C O N T I N U E D O N P A G E 4 6

�



C O N T I N U E D F R O M P A G E 4 5

�

Ever have that strange feeling that some-thing seems wrong when you’re looking at aprospective buyer’s pay stub?

Perhaps the numbers are slightly off withthe tax calculation or the pay dates. Everydealer, especially Buy Here-Pay Here dealers,can relate to that.

Despite those nagging suspicions, it’snearly impossible to confirm at a glancewhether a pay stub is legitimate. Fake pay stubslook quite convincing – and they’re gettingharder and harder to detect, which is a bigproblem for dealers.

Fake pay stubs are so sophisticated thesedays, there’s an entire submarket dedicated toit. Google the phrase “fake pay stub” and morethan 20,000 results appear, with companiesboldly advertising their ability to deliver profes-sional-grade pay stubs.

Applicants who provide falsified employ-ment and income information can set off adomino effect of increased risk, delays andcosts at practically every step of the salesprocess.

So instead of simply eyeballing a pay stubor taking the time to manually verify the

applicant’s employment status, consider alittle-known secret weapon within the automarket: instant verifications.

Having access to verified employmentand income data can streamline your sales

process to help you work smarter and fasteras well as build a more profitable, loyalcustomer base.

Here’s a quick overview of how instantverifications work and how they can shift yoursales and financing into a higher gear.

The Data is Waiting for YouDatabases have long existed to help

aggregate, track and monitor data on practicallyevery activity in the business world.

Over the past decade, employer-providedpayroll data has also become available througha searchable database. Participating employerselectronically report their payroll informationeach pay period to a designated data provider,which then collects and standardizes the data.

With consumer consent and approvedaccess through a designated data provider, youcan instantly search that employment andincome data while your customer sits acrossthe desk from you. In most cases, the data iscurrent up to the most recent pay period.

To get the information, a dealer mustapply/submit a contract to access the databasein order to purchase verification of employmentand income through a designated data provider.Look for a provider with a large database of

“Fake pay stubs areso sophisticatedthese days, there’san entire submarketdedicated to it.Google the phrase‘fake pay stub’ andmore than 20,000results appear.”



employers so the employment records you’relooking for can be verified on the spot.

If that sounds simple, that’s because it is.Now, does every single employer in the

country report its payroll data? No. Butthousands and thousands of them do, rangingin size from small, private businesses toFortune 500 firms.

What about the quality of the data? Is itreliable?

The data is direct from the employer and isverified. Along with confirming where potentialcustomers work, with the consent of yourprospective buyers the tools can provide detailsthat show exactly how much each individualmakes each pay period, how long he or she hasbeen on the job, and more.

That additional insight can prove invaluablein assessing the needs of prospective buyers.A complete understanding of their financialstanding can help you guide them toward avehicle they can afford and a payment planthey’re more likely to stay current on.

There’s no way to completely eliminatelending risks during the underwriting process,of course. But more employers are reportingtheir information every year, so the odds areincreasingly in your favor that a customer’s C O N T I N U E D O N P A G E 4 8

�

employment and income information is justa few clicks away.

In terms of helping you better manageyour process across the broader volume ofloans you facilitate every day, few tools can

deliver a return on investment as impressive asinstant income and employment verification.

Educate Your BuyersPulling traditional credit reports gives you

the basic information you need to understandyour customers’ financial situation. The additionof instant income and employment verificationprovides an extra level of insight that allowsyou to start meaningful conversations abouthow much they can realistically afford to payevery month.

Running the verification doesn’t take muchadditional time – it’s as simple as checkingan extra box when filling out a credit reportrequest form.

The results give you immediate, verifiedinsight into customers’ employment and incomestatus that is completely independent of anycustomer-provided documentation.

From the start, you get a better under-standing of your customers’ needs and financialsituation so you can work with them and helpidentify an appropriately priced vehicle thatfits into their budget.

That higher level of understanding can help

“You’ve transformedwhat is oftenperceived as a

negative, back-and-forth process into aseamless sales

experience focused onboth the customer’simmediate needs andlong-term needs.”

44-49_UCD_07.15_Layout 1 6/19/15 8:01 PM 7


C O N T I N U E D F R O M P A G E 4 7

�

you put together strong deals in a short amountof time, while also creating a more customer-centric sales process.

Using those verifications is also a win foryour customers, especially those with subprimecredit scores who wouldn’t get a second lookfrom other dealerships.

Putting customers with low credit ratingsinto the right cars – with payments they canafford – gives them a better chance to getback on their feet and improve their financialstanding.

Remove Obstacles Caused By FakePaystubs

When a customer walks onto your lot,ideally you’ll be able to quickly understand thecustomer’s financial situation and start distin-guishing the vehicle the customer wants andcan afford based on your lending criteria.

Unfortunately, that process traditionallytakes a large amount of time. Detective work,such as calling companies to verify where yourcustomer currently works and earns a certainamount of income, can take anywhere from 30minutes to a few hours depending on howresponsive the employer is to your request.

Those investigations typically start whenyou pull a credit report and the customerprovides proof of identification, which wouldtraditionally include a pay stub reflectingcurrent income and employment status.

At that point, there are two risks you facewith that pay stub.

The first is that the customer might nothave a pay stub at all, forcing you to ask himor her to go home and return with one. Thereis no guarantee the customer will return afteryou make that request, which means you notonly would have lost a sale, but also wastedvaluable time that could have been spent withanother prospective buyer.

Instant income and employment verifica-tions are an easy solution to that problembecause the data you pull can serve as areplacement for a missing pay stub.

The second risk you face is that thecustomer could provide a falsified pay stub.That situation is far worse, especially if youmove ahead with the sale thinking theinformation is legitimate.

If you identify the scam later in theprocess – after you’ve already matched thebuyer with what you thought was the right carand loan – you have to start the whole salesand financing process from scratch, potentiallywith an entirely different vehicle.



If you miss the fake stub entirely, you’vejust sent an individual home in a car thatindividual very well might not be able to afford,and you’ve also done business with anindividual who has knowingly fabricateddocuments. That will likely end up costing bigbucks down the road, especially if you have tolocate and repossess the vehicle after thecustomer stops making payments – and that’sif you can recover the vehicle at all.

Now, let’s reset back to the beginningof the sale. This time you opt to verify thecustomer’s income and employment when youpull the customer’s credit report.

Without having to rely on any customer-provided documentation or hoping thecustomer returns with a pay stub, you canspeed past the “is it real or not?” drama andget the verified employment and income datayou need in seconds.

You now have the information andconfidence to make a loan offer in minutesinstead of hours, days or not at all.

A Buying Experience That BuildsLoyalty

With instant verification at your fingertips,you can accomplish several things.

First, you can create a customer-firstsales process that starts with a better under-standing of your buyers’ needs. Second, youcan proactively steer customers towardvehicles that fit their financial situation. Third,instant verifications can help speed up thesales and financing process by avoiding fakepay stub pitfalls.

And finally, you’ve set your customer upfor success in the long run by providing anavenue for the customer to build up his or hercredit standing.

From a consumer’s perspective, you’renow a rock star.

You’ve transformed what is oftenperceived as a negative, back-and-forthprocess into a seamless sales experiencefocused on both the customer’s immediateneeds and long-term needs. You’ve alsostarted a positive relationship that cangenerate increased customer loyalty andrepeat business.

Consider how your reputation in yourcommunity would benefit from personalreferrals and word-of-mouth about your abilityto truly improve what is often a stressfulexperience for credit-challenged customers.

From start to finish, instant income andemployment verifications can inject morereliable information and efficiency into thesales process where it matters most. That

vital data means you have the factsabout your customer’s income status andemployment history up front, empoweringyou to close deals faster and get thecustomer into the right vehicle, with reducedrisk and with less stress.

And, while instant employment verifica-tion won’t solve every financing challenge, it’san easy update to your current process thatcan complement credit reports and othertraditional tools.

You’re only a few clicks away frommaking confident decisions on a daily basis

and building a better customer experience thatbuilds trust, loyalty and repeat business.

Angelica Jeffreys brings more than 25 yearsof automotive experience to the Equifax autoleadership team as vice president and automo-tive dealer leader, helping dealers find innovativeways to solve real world pain points, drivegrowth and improve business performance.


equifax instant verification feature

Documents

income data

payroll data

pay dates

c o n t i n u e d o

phrase fake pay stub

designated data provider

monitor data

c o n t i n u e d f