ATLANTA — Equifax Inc. has announced that automotive dealers who use Credit Bureau Connection's (CBC) credit reports and compliance solutions will now have the opportunity to access income and employment data as well.
This data is provided via The Work Number and allows automotive dealers with permissible purpose and consumer consent the ability to verify their consumers' reported income and employment. Verifying this information helps the dealer to clear common lender stipulations generated during the auto financing process and validate data reported on loan applications to ensure accuracy, officials said.
"CBC is thrilled to partner with Equifax to offer Instant Income and Employment Verifications to our customers. As the automotive industry leader in credit report and compliance solutions, we understand the value of retaining the customer at the dealership to finalize the deal," said Mike Green, president and CEO of Credit Bureau Connection. "We understand the odds of a buyer returning to complete a vehicle purchase decrease substantially if they are forced to leave the dealership to obtain necessary income and employment proof. Having the ability to satisfy this requirement while the buyer is in the buying mode is vital to a dealership's closing ratio."
The Work Number is a proprietary database of more than 248 million employer-direct payroll records owned by Equifax. It provides income and employment information, in seconds, to banks, mortgage companies, auto dealerships, and other commercial entities when authorized by the consumer, and in compliance with FCRA regulations.
Equifax research indicates that almost 25% of borrowers purposely or inadvertently inflate their stated income on auto loan applications by a factor of 15% or more, which increases the possibility of charge-offs and delinquencies for auto dealers and lenders.
For the other 75% of car buyers, the ability to quickly verify income and employment information at the dealership is very important from a strategic standpoint, as it helps ease the challenges of lender "stips" and other potential roadblocks to financing. Additionally, having fast access to that data enables auto dealers to close more sales by eliminating the risk of losing the deal because a customer was sent away from the showroom to collect proof of documentation and never seen again.
"Our mission is to serve the dealer and lender communities alike through access to the highest quality database of income and employment data available in the marketplace," said Michael Kuentz, senior vice president at Equifax. "By partnering with CBC, our auto dealer customers are empowered to close more loans and create a better experience for auto buyers — while effectively protecting themselves from the negative impact of misstated income.”