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#124707 - 10/23/03 02:06 PM Dealer Loan
Anonymous
Unregistered

I need help on dealer loans. We are requesting copies of the drivers license faxed to us with the application. Our main problem with this whole license thing, is that more often then not there is an address discrepancy. We of course don't have the customer in front of us, but the discrepancy needs to be addressed and resolved. We don't want to put so much burden on the dealers that we lose their business. I take compliance very seriously, but I also take customer service just as seriously. I need to know what other banks are requiring on dealer loans. Thanks in advance for any suggestions that seem to work for you.

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#124708 - 10/23/03 02:11 PM Re: Dealer Loan
Anonymous
Unregistered

I am not sure about the issue when DL doesn't match the address - I am not so sure I would be concerened with that - it is really the dealer's responsibility to make sure they have the correct address. One thing we do is we call every newly funded Indirect customer as a customer service call to make sure they don;t have any questions, and that they received their coupon book. While it is an effective customer service tool, the underlying reason is to verify the authenticity of the loan and make sure we don;t have any dealers funding ghost loans, or double dipping with multiple lenders.

That said, I would be very concerened that you are asking for the DL with the application. The examiners could easily target you for discriminatory practices, claiming you see a picture of the applicant before you make your credit decision. Before Patriot Act, we stopped asking for DL with contracts because at our exam,they found that discriminatory. Now, we ask for it with approved contracts, but not with application. You may want to look into that.

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