Author: Jeff VanOrnam

CBC will be at NADA2020CBC will be at NADA2020

Come by and see what’s new!

It’s that time again! NADA is almost here and CBC has been extremely busy throughout 2019. Check out some highlights below and then come by and see us at booth 6002N and get the whole scoop. We look forward to seeing you.

Synthetic Identity Detection
Synthetic identity detection coupled with the industry’s most advanced identity authentication process protects your business’ bottom line by determining if a new applicant is likely associated with synthetic identity fraud, consumer ID theft, and other Red Flags.

Read a captivating article featuring CBC – F&I Showroom Synthetic Fraud
ADA Compliance
If you use one of Credit Bureau Connection’s online web applications you may have noticed the wheelchair icon at the bottom right of the application. CBC is the only credit reseller that is fully Americans with Disabilities Act (ADA) compliant on all online web applications.
Automated Income Check
Automated Income Check (AIC) immediately provides the critical insight you need to swiftly keep deals on track, delivering more than the customer’s last paycheck or hourly rate. You get several critical data fields that provide you with more detailed employment and income information, such as employer name, annual income, and job tenure. Best of all, you can get it delivered with any CBC credit report.
Prequal Credit Reports
Online web application or in-house first step full-file prequalification reports without the requirement to provide a firm offer of credit. All bureaus return a true FICO credit score model. Pull one, two, or three prequalification reports simultaneously.
Compliance Management
CBC’s Red Flag Review Dashboard provides compliance management real-time access to Red Flags that need to be reviewed, verified, or corrected. If there are Red Flags, OFAC, synthetic identity detection, fraud, or other discrepancies on an applicant, an authorized user can review, modify, pass or fail an applicant. An email alert is immediately sent to the responsible dealership personnel requesting action to be taken and corrected.
AA and RBPN Fulfillment
Eliminate human error
Eliminate extra labor costs
First-class mail delivery
RBPN letters mailed daily
RBPN sent only if not produced
No long term contract or set up fees
Monthly summary report of all letters sent
AA/RBPN letter copies stored in the eVault
Eliminate the tedious task of sorting through deal jackets
AA letters sent twice monthly on or around the 10th and 25th
Set AA criteria by deal status, maximum credit score, or all
Liens and Judgments
Remember when Liens and Judgments returned information in the credit report about public record filings on individuals to help uncover civil court filings during the credit review process? You can once again get Liens and Judgments data in your credit report, only available from Credit Bureau Connection.
eVerify Compliance Suite
COMPLIANCE DELIVERED WITHIN the CREDIT REPORT

Red Flags Rule check powered by CBC’s robust identity verification tools
Multiple choice Out-of-Wallet questions
Simple PASS/FAIL Red Flags indicator
Synthetic Fraud Indicator
OFAC check with “clear” feature
Military Lending Act qualified buyer check
Adverse Action notice processing
Risk-Based Pricing notice with bar graph and signature line
Plate to VIN
INSTANT VEHICLE INFORMATION from PLATE to VIN

Online Digital Retail Applications
Convert Between VIN, License Plate, and State Data
Simplify the Trade-in Process with just a License Plate
eClear Credit Risk Report
CBC’s eClear Credit Risk Report “alternative data” credit report is designed for buy-here-pay-here dealers and automotive lenders in the sub-prime space. Powered by Clarity Services’ massive consumer database, you can now receive valuable insight into the creditworthiness and risk level of your buyers based on data not delivered with traditional credit reports. This enhanced consumer assessment will allow BHPH, independent dealers and lenders to recognize potential risk prior to contracting a high-risk, bad payer.

Liens and Judgements

Liens and Judgments are Back!Liens and Judgments are Back!

Liens and Judgments
Critical data on tax liens and civil judgments is no longer included as part of the standard consumer credit report issued from all three major credit bureaus. This change occurred as part of the implementation of the National Consumer Assistance Plan which is the result of a settlement between the three leading US credit bureaus and 38 states in 2015. As of April 2018, Equifax, TransUnion, and Experian have fully discontinued offering liens and judgment data. How is your business navigating this data deficit?
CBC Can Help!
Exclusively from Credit Bureau Connection you can once again receive Liens and Judgment data delivered directly in the body of the credit report. Liens and Judgments return information about public record filings on individuals to help uncover civil court filings during the credit review process. Contact us @ 800.448.0183 or email sales@creditbureauconnection.com for complete details.

Alternate Data

Regulators Appear to Endorse Alternative Credit ScoringRegulators Appear to Endorse Alternative Credit Scoring

December 5, 2019, • by Tariq Kamal

Kathy Kraninger is director of the Consumer Financial Protection Bureau, which joined four other federal banking regulators in offering a largely positive opinion of alternative credit data in a joint statement this week.

WASHINGTON — The Consumer Financial Protection Bureau and four other federal regulatory agencies released a joint statement offering tempered support for the use of alternative data in credit decisioning processes, including applications for auto loans.

Alternative credit data focuses less on credit history and more on cash flow, measuring activity relating to “nonfinancial” information such as bill and rental payments and bank account balance history. The use of alternative data in “second look” platforms for applicants who fail to qualify under traditional scoring models has grown over the past decade as creditors have sought new ways to reach more borrowers.

The CFPB was joined as a signatory by the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corp., the Office of the Comptroller of the Currency, and the National Credit Union Administration.

“Using alternative data may enable consumers to obtain additional products and/or more favorable pricing/terms based on enhanced assessments of repayment capacity,” the statement reads, in part. “These innovations reflect the continuing evolution of automated underwriting and credit score modeling, offering the potential to lower the cost of credit and increase access to credit.”

The alternative model generated 27% more approvals and reduced annual percentage rates by an average of 16%.

The statement follows the August release of a CFPB-commissioned study, undertaken in partnership with Upstart Network, an alternative scoring technology provider, that set out to compare decisioning results from traditional and alternative models.

Analysts found the alternative model generated 27% more approvals and reduced annual percentage rates by an average of 16%; no bias toward any race, ethnicity, or gender was detected.

However, “As with prior developments in the evolution of credit underwriting, including the advent of credit scoring, the use of alternative data and analytical methods also raises questions regarding how to effectively leverage new technological developments that are consistent with applicable consumer protection laws,” the regulators noted, listing unfair, deceptive, or abusive acts or practices standards and the Fair Credit Reporting Act as examples.

Synthethic Idenity Image

Fraud identity tool enforces in-store compliance processesFraud identity tool enforces in-store compliance processes

For dealerships, fighting fraud is a never-ending battle. Software can aid in the process — but only so far. A tool forged from a partnership between Credit Bureau Connection and Experian claims to stop fraud before it happens, while preserving the evidence in case a bad deal clears the finance office.

If a vehicle is sold to a fraudster, executives at both companies say, general managers and dealer principals can use the tool to figure out how it happened and who was responsible.

The tool, called eCredit Complete, utilizes credit bureau data to flag inconsistencies in the credit application process. Launched this January, the system documents each transaction and the corresponding actions taken by the F&I manager. It also sends the paperwork to a designated dealership employee, typically the chief compliance officer, to sign off on before deals go through. Executives at Credit Bureau Connection say the features stop fraudulent deals from going through and can potentially weed out rogue employees.

Typically, fraud-prevention systems generate a score of certainty that the identity matches the customer. For Mike Green, CEO of Credit Bureau Connection, that score doesn’t tell the whole story.

“If you were sitting in front of a consumer running a credit report trying to make a credit decision, and you were returned a fraud score of 92 or 87, in today’s world, what does that mean?” Green said.

Exactly what’s wrong
In contrast, eCredit Complete indicates exactly what elements of the customer’s identity require additional documents to validate. Darin Larsen, Credit Bureau Connection’s COO, says this tells F&I managers exactly what’s wrong and how to fix it. If F&I managers don’t follow up with the requested materials, the system will make note of that missed step.

The tool is aimed particularly at preventing synthetic-identity fraud. That’s where scammers assemble an online persona that includes pieces of a genuine consumer’s identity, such as a Social Security number, along with bogus information. The goal is to establish a credit history that looks healthy enough to secure an auto loan.

Due to the data provided by Experian, synthetic-identity fraud alerts are few and far between, Larsen said, with false positives being extremely rare.

“If a dealer is getting a tremendous amount of false positives on a high number of deals, it’s human nature to disregard that,” Larsen said. “The last thing we want to do is stop good business from happening.”

Experian, of Dublin, Ireland, is a multinational consumer credit reporting company with North American headquarters in Costa Mesa, Calif. Credit Bureau Connection, of Fresno, Calif., offers credit reporting and compliance solutions.

Call the cops
The system adds another layer of protection by incorporating another dealership employee into the process. Because eCredit Complete sends a copy of the deal to dealership compliance officers to review, they have the opportunity to stop a potentially fraudulent deal.

Two California dealerships prevented fraud losses while using the tool, according to Experian. In one case, a dealership was able to apprehend a fraudster after the system alerted employees of potential synthetic identity when pulling the customer’s credit report. When the customer returned to the store to pick up the vehicle, police were waiting.

Credit Bureau Connection said the tool is used by “thousands of dealership customers” nationwide.

By Jackie Charniga Automotive News

November 27, 2019, 11:03 AM

Fraudster

Credit detection tool thwarts synthetic identity fraudCredit detection tool thwarts synthetic identity fraud

October 28, 2019

Bianca Chan, Associate Editor
Exclusive, Risk Management

A new tool targeting synthetic fraud, developed by Experian and Credit Bureau Connection (CBC), has already thwarted three instances of fraud at the dealership, said Chris Ryan, Experian’s senior fraud solutions consultant.

The tool, called Synthetic Identity Detection Score, launched in March and is the latest fraud solution to come out of Experian and CBC’s collaboration. CBC has been incorporating Experian’s fraud tools into its fraud-detection toolkit since 2015.

“The challenge with synthetic identity fraud is that these fake identities appear to be legitimate,” Ryan explained. “These fraudsters cultivate positive credit behavior in order to access larger and larger amounts of credit and maximize what they can steal.” As a result, Synthetic ID Score was developed to examine the way a credit identity or profile evolves. It understands when and how an identity is made to appear more creditworthy, such as sharing accounts between people, Ryan said.

Already, the tool has bolstered dealers’ defenses against fraud, specifically during the account-opening process, said CBC Chief Executive Mike Green.

Recently, an individual attempted to purchase a luxury vehicle, worth $90,000,  from a dealership in southern California, Green explained. The detection tool cross-referenced the information provided and flagged the transaction as potentially fraudulent. “We later found that the individual used the information of another individual with the same name,” he said. “After further investigation by the authorities, it was determined this was the work of a fraud ring that had already defrauded other dealerships.”

In another instance, sales managers pulled an applicant’s credit report, resulting in a potentially synthetic identity fraud flag. When the dealership requested additional verification materials from the applicant, the customer left the dealership. The sales team called the applicant to come back and pick up the vehicle – once the individual arrived, the dealership called the police and the fraudster was apprehended.

Experian estimates that the number of identities the technology flags as suspicious has increased more than 5% year over year.

Galpin Motors

2019 Fraud Testimonial2019 Fraud Testimonial

Galpin MotorsCredit Bureau Connection’s (CBC) new fraud prevention product allows our dealership to better identify synthetic identity theft, which seems to be occurring at a higher rate than ever before. Using this new tool, one of our Galpin Motors Sales Managers was able to quickly stop the deal in its tracks and notify the compliance department of the alert. After investigating the incident and referring it to the police, it turned out that the individual was using the identity of a person who happened to share the same name. While we were able to prevent the thief from obtaining a brand new luxury vehicle, he had already obtained other luxury vehicles from local dealerships (whom I suspect were not using CBC). Fortunately, the information we provided to the police eventually led to the arrest of two individuals involved in scamming the other dealers. I would like to thank CBC for being on the cutting edge of fraud prevention and Red Flag compliance, which is why we chose CBC in the first place.

Chris Cleveland
Compliance Director, Legal Affairs Dept.
Galpin Motors, Inc.

American's with Disabilities Act Image

Americans with Disabilities Act (ADA) ComplianceAmericans with Disabilities Act (ADA) Compliance

If you use one of Credit Bureau Connections online web applications you may have noticed the wheelchair icon at the bottom right of the application. CBC recently implemented Americans with Disabilities Act (ADA) Compliance on all online web apps.

Wheelchair icon

The Americans with Disabilities Act (ADA) was developed in 1990 and is meant to ensure that people with disabilities have the same opportunities as anyone else. This means any businesses that serve the public must make sure their building accommodates people with disabilities of various kinds. And now that the internet is so widely used, ADA compliance also applies to websites and even mobile apps. Basically, this means that your website needs to be accessible to people who have disabilities that affect their hearing, vision, or physical capacities.

Recently, a ruling has been passed declaring the official standard of website accessibility for businesses. Title III of the ADA has mandated that all “places of public accommodation” are required by law to remove any “access barriers” that would inhibit a person with disabilities from accessing the business’ goods or services.

The ADA accessibility provided by CBC only works within the iFramed web application. You are still responsible for making the rest of your website ADA compliant. Feel free to contact CBC with any questions regarding ADA compliance.

ID Thief

Fraud Ring Thwarted by CBC Fraud Protection ToolsFraud Ring Thwarted by CBC Fraud Protection Tools


Synthethic Idenity Image

FRESNO, CA – Credit Bureau Connection (CBC), the provider of the most comprehensive set of fraud prevention tools in the automotive industry, helped stop a Southern California fraud ring.

Automotive fraud comes in many different flavors, from personal identity theft to thieves creating a new persona using synthetic identities, and more. CBC proudly stands at the forefront of dealership Red Flags detection and various other identity protection tools with detection built into CBC’s proprietary Red Flags Compliance. CBC makes it simple to detect potential fraud by delivering fraud and OFAC results at the top of the dealer run credit report. This makes the daunting task of dealership due diligence easier than any other solution available.

The power of CBC’s software was proven recently when an individual attempted to purchase a luxury vehicle from a well known Southern California dealership, and during the process, CBC’s solution alerted dealership personnel of a potential threat. The information delivered was shared with local authorities, and the thief was arrested. This eventually led to the arrest of another individual linked to the same theft ring.

Testimonial from Chris Cleveland, Compliance Director, Legal Affairs Dept. Galpin Motors, Inc.

Credit Bureau Connection’s (CBC) new fraud prevention product allows our dealership to better identify synthetic identity theft, which seems to be occurring at a higher rate than ever before. Using this new tool, one of our Galpin Motors Sales Managers was able to quickly stop the deal in its tracks and notify the compliance department of the alert. After investigating the incident and referring it to the police, it turned out that the individual was using the identity of a person who happened to share the same name. While we were able to prevent the thief from obtaining a brand new luxury vehicle, he had already obtained other luxury vehicles from local dealerships (who I suspect were not using CBC). Fortunately, the information we provided to the police eventually led to the arrest of two individuals involved in scamming the other dealers. I would like to thank CBC for being on the cutting edge of fraud prevention and Red Flag compliance, which is why we chose CBC in the first place.

dog in the window

FREE! Increase Your Credit Score With Experian Boost™FREE! Increase Your Credit Score With Experian Boost™

Boost Your Credit Score

What is Experian Boost™?

Experian Boost™ is an entirely free service developed by Experian® to help increase your credit scores on-the-spot by using your own positive repayment history. It can also help those with poor or limited credit. Experian Boost™ helps by giving you well-deserved credit for the utility and mobile phone bills you’re already paying. Until now, those payments had no positive impact on your FICO® score. Other services such as credit repair may cost you thousands of dollars, and only help remove inaccuracies from your credit report.

Boost Your Credit Score

How Does Experian Boost™ Work?

Experian Boost™ works by adding bills you pay every month like your power bill and mobile phone bill to your Experian credit report. Your score will only increase, and you have full control over the self-reported payment history you choose to include. Score increases range from a few points up to double-digit increases.

If you are looking to improve your chances of getting approved for financing, give Experian Boost™ a try. In the unlikely event, your score does not increase, or you choose not to add an account to your credit report, you can prevent the account from being added to your credit report.

Boost Your Credit Score

Results may vary. Some may not see improved scores or approval odds. Not all lenders use Experian credit files, and not all lenders use scores impacted by Experian Boost.

Winding Road

Sales Compliance and the Red Flags Rut – by Gil Van OverSales Compliance and the Red Flags Rut – by Gil Van Over

The latest statistics from the Federales suggest that at least one-quarter of Americans have been a victim of identity theft. That percentage would likely be higher if more victims were aware of it.

Under the Federal Trade Commission’s Red Flags Rule, dealerships are obligated to have a program in place to help diminish the likelihood that an identity thief can use a victim’s information to purchase or lease a vehicle.

We all get into ruts. One of the most frequent I see in sales managers is the Red Flags rut. It’s also among the most perilous.

Red Flags War Story

An attorney once called to ask me to represent a dealer who was being sued by a victim of identity theft. As you know, I always work for the good guys, never the Dark Side.

The fact pattern was that an identity thief drove over four hours on back roads to the dealership, intending to purchase a vehicle using a victim’s identity. The dealer’s vendor identified at least nine potential Red Flags, which the dealer ignored. Unfortunately, the dealer’s finance source also ignored them and financed the contract.

Three months later, the victim became aware his identity had been stolen and filed the requisite police report. The finance source successfully repossessed the vehicle (a rarity), and recoursed the paper back to the dealer at a loss.

Fast-forward another three months. The identity thief is now in the recycling-the-victim’s-identity rut. He makes the same drive to the same dealership (asking for the same salesperson) to purchase and finance another vehicle using the victim’s identity. This time the dealer’s vendor identified 13 potential issues and even issued an alert.

The dealer spot-delivered the vehicle and financed it with a different source who also ignored the glaring red flags. Of course, three months later, the victim found out, filed another police report, then sued the dealer for six figures.

The lawsuit could have been avoided had the dealer followed just a very basic Red Flags process or paid attention to the many warnings.

Your Red Flags Process

Common discrepancies identified by Red Flags vendors include address, Social Security number, a consumer-initiated credit bureau alert, a security freeze, or the vendor’s inability to satisfactorily confirm the consumer’s identity against their 500 or so databases.

To properly clear the address discrepancy, the manager should obtain valid proof of residence from the customer. Acceptable proof of roof does not include license, registration, or insurance card. These are among the first documents an identity thief forges.

The same process applies for Socials. Obtain a copy of the Social Security card or a letter from the Social Security Administration. Watch out for forgeries! A quick internet search will provide examples of legitimate cards to compare with the issue date. They change and morph over time.

And no, successfully answering out-of-wallet questions clears neither the address nor the Social Security discrepancy. Out-of-wallet questions can clear other potential Red Flags, including an unconfirmed last name or a bureau fraud alert.

The ‘Manage the Report’ Rut

Most of the vendors have a mechanism to document that the Red Flag was cleared and retain that documentation in its archives. Unfortunately, it can be as simple as the manager clicking on a button in the software.

The correct approach to documenting that the dealership conducted its due diligence and properly vetted the transaction is to treat a Red Flags like you treat a subprime stip.

Many dealers use a structured approach to clearing and submitting subprime stips, and with good reason. If a deal defaults, it can become subject to recourse from some subprime finance sources because the stips were falsified or bogus. If you do not obtain, vet, copy, and submit the stips, you do not have the documentation to fight the claim.

Same goes for documenting the clearance of potential Red Flags: Obtain the clearing documentation, vet it for legitimacy and authenticity, copy it for your file, and then document the clearing action in your Red Flags vendor’s system.

You now have proof that, to the best of your knowledge, you properly cleared the Red Flags and can proceed with the sale.

And yes, good luck and good selling!

Author

Gil Van Over
Gil Van Over

Columnist

Gil Van Over is the executive director of Automotive Compliance Education (ACE), the founder and president of gvo3 & Associates, and author of “Automotive Compliance in a Digital World.” Email him at gvo@bobit.com. View Bio