Pay stubs are causing all sorts of pitfalls for automotive finance and insurance managers. There’s the issue with sending a potential customer home to retrieve their pay stub, only to never see him or her again. And what about those customers coming prepared, but with a potentially fraudulent pay stub that they’ve purchased online?
I, along with Gil Van Over, principal of compliance consulting firm gvo3 & Associates, recently had the opportunity to speak with Automotive News stressing how important it is for lenders and dealers to be sure a customer can handle their auto payments, while also protecting themselves from potential fraud.
One recommendation for addressing these challenges is the use of a third party service for employment and income verification, such as the one offered by Equifax. These types of services automate one of the most difficult processes in auto sales and auto lending by allowing for on-the-spot verification, without having to send the buyer home.
Another key suggestion shared in this recent interview is to inspect pay stubs carefully. Van Over comments that pay stubs purchased online are often of poor quality. Because of this, fraudulent pay stubs may be able to be detected if examined closely.
What will you do to outsmart the fake paystub? Check out Automotive News’ full commentary on the topic titled “Outsmart the Fake Pay Stub” and follow our blog for more insights.