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Originally Posted by pylon
About 30% of our approvals do not require proof of income. And it is never those people that become a problem. I cannot recall the last time someone with Tier A credit has been repo'd voluntarily or forcifully.
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This I agree with.
But once you start approving without proof of income, you set a poor standard, IMO.
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It is always the people who you go to bat for and beg and plead with the bank to get approved that bite you in the ass. Regardless of any of that, credit fraud is a federal crime, and because the lender does not ask for you to substantiate your income claims, it does not make it right to lie. If they repo the car and find out your loan was based on falsified info, they would absolutely forward it to the appropriate authrorities.
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The dealer financing contracts I've seen are no recourse financing. So you sieze the asset and your avenues of collection are realistically exhuasted.
Now on an actual promissary note the FI would probably get a judgment against the debtor.