Can credit card companies verify income and/or employment?

Tazer1

Hi,

Just wanted to ask can credit card companies, or banks, verify income and/or employment status stated on applications, if so, how?

Thanks

YorkshireBoy

They can verify your application data in a couple of ways...

1. By checking what you've put down on recent previous applications (ie by using a Fraud Prevention Agency such as N Hunter).

2. By asking you to submit bank statements, 3 wage slips and a P60.

I'm sure you're only asking out of interest (;)), but application fraud is never a good idea. It'll only end in tears...and a CIFAS marker!

Tazer1

YorkshireBoy wrote: »

They can verify your application data in a couple of ways...

1. By checking what you've put down on recent previous applications (ie by using a Fraud Prevention Agency such as N Hunter).

2. By asking you to submit bank statements, 3 wage slips and a P60.

I'm sure you're only asking out of interest (;)), but application fraud is never a good idea. It'll only end in tears...and a CIFAS marker!

Thanks,
Can they verify by checking with HMRC by the amount of tax you have paid or any other means?

Yes absolutely, just asking out of interest, as lying is a NO NO.. and could be dangerous for the future.

Gurranes

No they can't check with HMRC - The tax man isn't sharing that data....yet. It probably would be a good iea to share it with the credit reference agencies for affordability reasons, but I would guess a long way off.

The CRA's are trying to get smarter using current account deposits to try to estimate income.

YorkshireBoy

Gurranes wrote: »

The CRA's are trying to get smarter using current account deposits to try to estimate income.

I didn't think credit balances were reported...only debit balances...let alone details of individual deposits!

Are you saying the banks are reporting my current account throughput and BACS Direct Credit deposits to the CRAs? I don't remember giving them permission to do this (and I do read T&Cs).

Do you have any more detail, ideally a link to a reliable (no offence!) source?

[Deleted User]

Gurranes wrote: »

No they can't check with HMRC - The tax man isn't sharing that data....yet. It probably would be a good iea to share it with the credit reference agencies for affordability reasons, but I would guess a long way off.

The CRA's are trying to get smarter using current account deposits to try to estimate income.

I didn't think CRAs could view current account deposits, only overdrawn amounts. As far as I can tell, the only way a CC company can verify your income is to ask you to provide evidence such as payslips etc.

Gurranes

I believe it's done through the current account turnover - they don't see individual deposits. This is then used to determine affordability/idebtedness - given the other outstanding credit you have.

As they can't determine what is exactly a salary and what might be monies passing through multiple current account they wouldn't label it as income.

http://www.callcredit.co.uk/press-office/news/2009/02/callcredit-expand-the-over-indebtedness-initiative

Tazer1

Thanks all, interesting read, appreciated.

YorkshireBoy

Gurranes wrote: »

I believe it's done through the current account turnover - they don't see individual deposits. This is then used to determine affordability/idebtedness - given the other outstanding credit you have.

As they can't determine what is exactly a salary and what might be monies passing through multiple current account they wouldn't label it as income.

http://www.callcredit.co.uk/press-office/news/2009/02/callcredit-expand-the-over-indebtedness-initiative

I don't see that as being a sharing of account throughput and salary/income from the bank to the CRA (as part of the monthly update).

What I see is that CallCredit are using 'application income' (as provided by the customer on a credit application, ie the same information that is shared with the aforementioned NHunter) and the current account data already being shared with the CRAs, in order to produce their equivalent of Experian's consumer indebtedness index (CII) figure.

It's not rocket science to ascertain whether someone really is likely to be on £50K per annum when they're bouncing DDs left, right and centre, and running a £700 overdraft!

Here's what Experian hold for current accounts...

http://www.experian.co.uk/downloads/consumer/experian-YCRE.pdf (page 11).

If they held any other data (current account throughput, deposits, etc) they'd have to release it to you when you request your credit report under section 7 of the DPA.

Gurranes

Apologies if I gave a mis-lead. I know OII is slightly more 'sophistocated' than Experians CII, the latter is looking to predict if there could be future issues with a consumers current indebtedness levels. - But doesn't factor affordability.

So when I buy my Rolls Royce on hire purchase my CII will go through the roof. < An exaggerated example rather than a life goal

zerog

If they report account throughput then I hope I'd get some good offers.. I cycle £100K through all my accounts a month!