In the past year, special finance departments across the country have been faced with a new problem, a problem that can destroy relationships with banks and lenders and lead to millions of dollars in fines and prison time.
One of the most important documents needed when applying for a subprime auto loan is a paystub. A paystub proves that the applicant is employed and making a certain income. Unfortunately, some desperate people who haven’t been able to obtain financing are producing fake paystubs in hopes of getting approved for a car loan. This story was first reported by Greg Goebel over on F&I and Showroom, and sadly, this is not an isolated incident. There are websites that allow users to print fake paystubs and YouTube videos that show how to produce fake paystubs.
To be absolutely clear, creating fake paystubs is illegal, and it is a costly crime. Offenders can face up to 30 years in prison plus fines up to $1 million. It is illegal to produce them for customers who are paid under the table. There is no circumstance under which you or your dealership should assist a customer in producing fake paystubs, and as much as possible, you should verify the paystubs are authentic.
Even if your dealership is fooled by fake paystubs and completely blameless legally, these incidents can still damage your dealership’s relationship with banks and lenders. Those relationships are vitally important to a successful special finance department, so be aware and know what to look for in spotting fake paystubs.
Want to learn more about how Special Finance Group can work for your dealership? Go to http://www.specialfinancegroup.com today to learn more about the Complete Special Finance Solution, and connect with Special Finance Group on Facebook, Twitter, and LinkedIn!
Image courtesy of moggara12 / FreeDigitalPhotos.net