Payday loan companies have dealt with a lot over the past few years. We’ve seen data breaches and increased scrutiny of companies that don’t put the consumer’s best interests first. That’s why it’s becomes very important for lenders to verify the identities of their online applicants. By doing this, they speed up the process by getting the funds sooner; here in Nevada it can be within 24 hours. It’s also easier for the applicant as the decision to give them funds gets easier.
The normal sequence for processing and underwriting usually goes like this:
- Application processing: the applicant’s data is first checked within internal databases for customers who are returning or who have been blacklisted or such instances.
- The phase of underwriting: the lender in question will then evaluate the application with the help of personally identifiable information, income verification, credit checks, know your customer checks (KYC) and other similar compliance checks. For example, if the consumer resides in Las Vegas, they will check data versus comparable records and databases.
- The funding: the final step wherein the decision to fund the applicant or not is taken into consideration.
The process of verification usually takes place between the first and second phases where the applicant’s data is verified against online filters. Yet before the underwriting process is still about to start.
Online Lenders in Nevada are held to standards put in place by the Nevada Financial Institutions Division. Most will make use of good quality non-personally identifiable information (PII) available data to verify every single lead. This makes it easy for the bank to pull out leads that are fraudulent without spending time and energy into it.
Why are these policies in place for payday lenders?
Most Las Vegas payday loan companies will implement this identity verification data and leverage rules within their underwriting. A lender can make it easier for them by streamlining the procedure of processing. In most cases, that will help improve the customer experience, while increasing the speed of their verification. These factors are all believed to decrease the customer’s experience. But such strict verification is there as the chances of fraudulent people applying for car title loan is very high. So to safeguard their money, lenders insist on strict identification. Nearly all Nevada based cash advance and installment lenders will require multiple forms of ID.
Another factor of why we see these policies is fraud. The majority of payday loan companies in Las Vegas won’t say it, but they get hit with hundreds of fraudulent short term leding applications a day. It’s easier for a shop in Las Vegas, NV to fight fraud as they are meeting the payday loan applicant in person. The online lender is different though, as they can do everything from the comfort of home.
Underwriting requirements for payday lenders in Las Vegas
They may ask you to produce a receipt of a personal loan. To start the process, a payday loan lender in Las Vegas might need a complete application form from the borrower. Within the process, you might be required to give two passport sized photographs, KYC documents, proof of employment, proof of income and similar relevant details and documents. Next they, require you to submit your documents. After they have received your documents, the team that is verifying will check your credit scores and whether you meet their standards. Though most lenders won’t even check or verify your traditional credit report with 3 main credit bureau companies. They might send a representative to verify the documents at your house. Some payday loan companies will even send a professional notary to meet with you. Most often, this occurs with car title loan companies, but we also see it with installment loan lenders as they offer high dollar amounts. You can often meet with a notary in larger cities like Las Vegas, Reno and Henderson.
These documents might include:
- Drivers license(In Nevada it can also be an identification card)
- PAN card
- Voter ID
In the event that you are a salaried employee, a payday lender in Las Vegas may ask for the following documents:
- Proof of employment from the current employer
- Your income returns and the Form 16 of the last two years
- The salary slips of the last of the previous 6 months
If you are self employed
- Income tax return for the last two years
- Profit and lost statements, Balance sheets and other such financial statements