Lender Income Checks

caseym489

Hi...
I am wondering how lenders confirm the income and expenditure figures entered on a credit application form. I do understand that their automated checks have full access to your credit file, however I thought that the above data wasn't stored at the CRA's.

I am aware that some companies share a database to catch people out, if using different figures on each application, but how such can be verified is a mystery to me.

Can they check your income with the bank or do they simply use your credit file to estimate your income and then ask for documents if you look suspicious to them?

Thanks for your answers in advance! :beer:

[Deleted User]

Consistency is the main check.

Additionally, some of the sub prime lenders make sporadic checks via bank statements or employers.

caseym489

Deleted_User wrote: »

Consistency is the main check.

Additionally, some of the sub prime lenders make sporadic checks via bank statements or employers.

Consistency that the client has used the same information across all of their applications / services without a big variation in figures, correct?

If someone obtained new employment or otherwise had a big change in income, wouldn't CIFAS (if reported by a lender for misrepresentation of finances) give the person a chance to provide evidence before placing a Fabrication of Application (or whatever it is called) on the persons credit file? I have heard of this happening to people, but isn't it only when you are constantly changing your figures and employment details, a small fluctuation shouldn't matter?

[Deleted User]

Correct. .

Shakin_Steve

National hunter are usually the ones that hold your income details etc., if you have made previous applications.
http://www.nhunter.co.uk/howitworks/

caseym489

Shakin_Steve wrote: »

National hunter are usually the ones that hold your income details etc., if you have made previous applications.

That sounds like an interesting service for companies to use. It is quite amusing that their anti-fraud procedure doesn't include a verification process for income data.

For those lying about their finances, it is a matter of keeping the same lie across all applications to keep under the radar...

Nebulous2

I remember reading about someone who filled out some of these household surveys putting in a much bigger household income than they actually had. He then received a lot of freebies, bottles of wine, boxes of bulbs etc.

I'm not sure if you could still get off with that.

caseym489

Nebulous2 wrote: »

I remember reading about someone who filled out some of these household surveys putting in a much bigger household income than they actually had. He then received a lot of freebies, bottles of wine, boxes of bulbs etc.

I'm not sure if you could still get off with that.

I support advances in technology for the protection of consumers, but companies are harnessing such abilities to protect their own from misrepresentation of income to gain an unauthorized advantage.

The free gifts are an incentive to attract wealthy clientele to their business model, whether it be investments; home improvement services etc.

It's probably not worth the risk these days, the collected data is certainly verified by underwriters for those companies by performing analytical checks.

BoGoF

You have to remember that the one lender who normally verifies income is your mortgage provider. Now if that income is registered with National Hunter......is it a good idea to lie about your income.

Obviously not everyone has a mortgage.

caseym489

BoGoF wrote: »

You have to remember that the one lender who normally verifies income is your mortgage provider. Now if that income is registered with National Hunter......is it a good idea to lie about your income.

Obviously not everyone has a mortgage.

If the National Hunter hold outdated records and the mortgage provider cannot confirm the new income figures electronically, documents have to be requested before they can confirm fraud has been committed by the client.

Income can change month by month, therefore National Hunter have to take this into consideration and where there is a massive inflation of figures, proof of such can be requested before a fraud marker can be filed with CIFAS.

phillw

caseym489 wrote: »

Income can change month by month, therefore National Hunter have to take this into consideration and where there is a massive inflation of figures, proof of such can be requested before a fraud marker can be filed with CIFAS.

You could still just be refused credit though.