Auto dealers offered buyers’ income and employment data

Information provider Equifax 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 using its proprietary database The Work Number, which holds more than 248 million employer-direct payroll records.

The Work Number provides income and employment information to banks, mortgage companies, auto dealerships, and other commercial entities when authorized by the consumer, and in compliance with Fair Credit Reporting Act regulations. Automotive dealers with permissible purpose and consumer consent will be able to use this service to verify their consumers’ reported income and employment.

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.

The company says that 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.”