How does a payday loan company verify your identity?

Payday loan companies aim to provide short-term loans to consumers. These loans are designed to help consumers in an emergency. Most payday loan customers are unable to obtain loans from traditional sources of funding. Payday loan companies will need a large amount of information from potential borrowers to verify their identity. This verification process is designed to protect payday companies and borrowers.

Image recognition:

US borrowers will need to present a valid picture identification card. The two most common forms accepted by payday loan companies are driver's licenses or nationally issued ID cards.

Salary stub:

Anyone applying for a payday loan must bring a pay slip. Most payday companies will need at least two current payrolls. They will use pay stubs as a way to verify that the borrower's ID matches the name on their payroll. Stubs are also used to verify enough revenue.

Employment verification:

Alternatively, payday loan companies verify the identity of the borrower through employment verification. Potential borrowers must complete an application form stating their place of work and the employer's phone number. The payday loan company will scrutinize to verify that the employment phone number in its database matches the phone number provided by the potential borrower. This is done to ensure that the borrower is what they call their true identity and that they do work at that location.

Bank account verification:

The final step in verifying the identity of the borrower is through a bank account. Borrowers living in the United States need to provide at least two current bank statements.

These bank statements will indicate to the payday company whether the potential borrower will refund the check and have a good reputation account. The payday company will use the phone number they have filed to call the bank and verify that the account is active.

The previous steps for authentication are designed to protect loan companies and borrowers from fraudsters. Some potential payday loan customers consider the verification process to be intrusive, but for their benefit.

When you apply online, you will be asked to complete an online application form. Here you must mention the ID number, driver's license [if available], SSN, position, bank details, etc. You don't need to upload any files with photos. However, the submitted information will be checked and you will be notified if your loan application is processed.

Submitting an application only indicates that you want one of the payday agents to approve and contact you to discuss your payday loan plan. You can ask us any questions and, if you wish, you can withdraw your request. If you are ready to continue, you can confirm your information and formally agree to the terms with one of our representatives.

Your application will be processed within 30 minutes of receipt. Once approved, you can pick up your loan on the next business day. By then, payday lenders will help arrange the repayment date so you don't have to worry about bounce checks or miss deadlines.

The rule is that lenders respect the privacy of their customers when managing personal finances. Often, websites that offer payday loans use a variety of security measures to keep your personal information safe. All sensitive data transmitted between your Internet browser and the credit website uses 128-bit Secure Sockets Layer [SSL] encryption. So you can rest assured that you don't have to worry about stealing your personal information.



Source by Tom Soucy

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