Job/Income Verification

[Anonymous]

Woulkd like to hear from former finance people members here if there are any.

I work for a family friend’s used car business (start up company). Part of my job is assisting with loan document verification. Since we are doing a lot of subprime this is important. Couple of questions.

When verifying employment/income we have been getting a lot of employers that will only respond in writing by fax. Question is how do you know who is sending you the information.? Can you verify who is sending the information to you or do you have to go on faith that “Linda Lee”, President of ABC Corp is actually who she says she is?

Another question. We recently sold a car to someone and let them drive off the lot before we finished verifying his employment since it was the weekend plus he was a friend of our dealership’s owner.. After several attempts to contact the employer he never responded and now the guy who took possession of the car tells us that he was fired from his job and he wants to give the car back. He has already put about 500 miles on the car as well. What can we do? Is there any recourse here?

[Creditaddict]

1. paystubs and possibly reaching companies that will at least verify current employment but more and more will not over phone for safety of it's employees against stalkers and such.

2. no offense but it sounds like you all are in over your head in this new business venture if you don't even know your legal rights to repo a car you sold or sue for use or whatever it is you are trying to do with this guy... you should probably be happy that it's just 500 miles and he wants to give it back vs you having to go after it and surely with sub prime car buying you are not letting them walk with NO MONEY DOWN?!?! that is silly beyond belief.

[ExplicitElicit]

I work for a bank and my primary job is vehicle loans. Doing subprime lending though, I could never deal with that so god bless you! Not to be rude to anyone with less than perfect credit I just see the headache and couldn't deal.

As for income verification as CreditAddict said, paystubs are a great way to verify. Be careful I've actually had people "DR" up paystubs, it was very noticeable because some numbers were in a different font    Otherwise my bank hardly ever verifies income because just to be approved you have to meet certain requirements anyways. Also I would always require a down payment when doing Subprime lending, that should not be an option. Also as CreditAddict stated, make sure you are aware of all the regulations and laws and right you have as the lienholder. It only takes one lawsuit or incident to end the business!

[Anonymous]

Thanks guys. Yea, I am a student working here for the summer so I am kind of learning on the job. We are running with a pretty lean staffand I cannot always get all my questions answered so I appreciate everyones help. We actually got the car back from the one guy and he did leave a $500 deposit which he is forfeiting, but I guess there is not much else we can do since we let him drive off the lot without verifying everything first. I guess the business owner could try to sue for usage.

Another question. Once we have verified employment and income can we continue to ask for other documents for proof like a W2? Is the buyer obligated to keep providing stuff after we have taken his deposit and let him drive off with the vehicle? Or can he refuse at that point?

[ExplicitElicit]

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@Anonymous wrote:

Thanks guys. Yea, I am a student working here for the summer so I am kind of learning on the job. We are running with a pretty lean staffand I cannot always get all my questions answered so I appreciate everyones help. We actually got the car back from the one guy and he did leave a $500 deposit which he is forfeiting, but I guess there is not much else we can do since we let him drive off the lot without verifying everything first. I guess the business owner could try to sue for usage.

Another question. Once we have verified employment and income can we continue to ask for other documents for proof like a W2? Is the buyer obligated to keep providing stuff after we have taken his deposit and let him drive off with the vehicle? Or can he refuse at that point?

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From a legal standpoint I have no clue, however I would not let anyone drive off with the car unless I was 100% sure everything was set in stone financing wise.