Understanding the FCRA Verification Process
When a fraud alert appears on an applicant’s credit report, additional verification is required before the application can proceed. This process confirms the applicant’s identity and intent to finance the vehicle.
What is an FCRA Call?
An FCRA call is a verification call initiated by the verification team to confirm the applicant’s identity and intent to proceed with a transaction, such as purchasing a vehicle. This step is necessary when a fraud alert is detected on the applicant’s credit file. During the call, the team speaks directly with the applicant to verify their identity and confirm their intent to proceed with the transaction.
Verification Options by Fraud Alert Type
Initial Fraud Alert
The verification team will first attempt to reach the applicant by phone.If the applicant cannot be reached, a video verification may be accepted as an alternative. Video verification is only available for initial fraud alerts.
Extended Fraud Alert
Extended fraud alerts must be verified by phone. Video verification cannot be accepted. The verification team must contact the applicant using the phone number listed on the fraud alert. If the phone number is missing or incorrect, the applicant must:
Contact the credit reporting agencies to update the phone number associated with the fraud alert.
Dealership resubmits the application after the credit report has been updated.
The application cannot proceed until the extended fraud alert is successfully verified by phone.
Important Reminder
Video verification is a backup option for initial fraud alerts only. It is never permitted for extended fraud alerts.