How Do Payday Loan Companies Verify Your Identity?

How Do Payday Loan Companies Verify Your Identity?

When someone is interested in getting a payday loan, a UK payday loan lender actually has to verify a borrower’s identity. Why is that? Well, you can claim to be anyone you like and say you have an excellent income with the means to repay the loan but all that might be talk. Lenders have to protect themselves against false applicants and they have to take steps to verify a borrower’s identity. However, how do payday loan companies verify your identity? click here for more information.

A Driving License or Passport

Picture identification can be a useful way for most loan companies to verify you are who you say you are. Many lenders will ask to see a document that verifies you which might include a picture. You could look at supplying a passport or a driving licence. Both of these things has your picture on the inside and can be used to verify you are who you say you are. What is more, the passport or licence must be active or valid to be used. Payday loans aren’t as difficult as you think to obtain but lenders are being more cautious.

Employment and Income Verification

Payday lenders absolutely have to know you have the means to repay the loan which means income verification. If you tell them you are employed, you have to show proof of that income. You might have to provide the loan company with a pay slip which will tell them what you earn and they can decide if you are a suitable risk. However, they may also ask for employment confirmation which means checking out the location of the borrower’s work. That might sound a bit strange but it’s to confirm your identity. A UK payday loan lender can often require these verification elements to approve a loan. for more info, visit : https://www.consumer.ftc.gov/media/video-0078-payday-lendingHow Do Payday Loan Companies Verify Your Identity?

Bank Confirmation

Lenders need to know the bank account they are going to place the money into and will receive their money from will be an active account. The lender can often look to get verification via bank account and look to ensure the bank account is active and not a fake account. It might not be something you’ve often thought about but it’s really a useful way to confirm you are who you claim to be. Payday loans usually are granted after the verification of your identity has been confirmed.

Verification Signs a Potential Borrower for Lenders

Lenders are being extra cautious when it comes to lending money simply because they can be scammed just as much as a borrower. Lending companies are looking into every little aspect of an applicant to ensure they can verify it is who they believe it is. It’s a very important aspect for a loan company to be able to confirm the person they are giving money to, is the person they claim to be. It might not be something you often think about happening but it does. A UK payday loan lender has to protect itself as much as what a borrower does so the necessary checks have to be carried out.