Loan records go through a life cycle of status updates.
List of Flags
Loan records may include flags to warn other lenders of fraudulent behavior. There are flags for personal loans, small business loans, and third party dealers.
Borrower uses another person’s personal information and credit rating to apply for a loan (aka account takeover).
Borrower falsifies identity (age, name, gender, marital status, address, etc.).
Borrower submits bank statements for a real company with transfers in and out to look like sales, but are really just movement of money.
Borrower adds a different card processor to divert merchant sales from the lender’s calculations.
Consumer has submitted a creditor proposal and a stay of proceedings has gone into effect.
Consumer has filed for bankruptcy and a stay of proceedings has gone into effect.
Incorporated business has filed for bankruptcy and a stay of proceedings has gone into effect.
Borrower alters documents (bank statement, paystub, credit card statement, etc.).
Borrower applies for a loan for a business they do not own as claimed.
Borrower sells business without notifying lender.
Borrower defaults on the first payment.
Merchant partner misrepresents their services to a borrower.
Merchant partner misrepresents the terms or cost of the loan to a borrower.
Merchant partner does not deliver contracted services, ex. HVAC or jacuzzi poorly installed.
Merchant partner engages in illegal or abusive sales practices, ex. door knocking in provinces that forbid it, or overly frequent solicitation.
Merchant partner falsifies, mishandles, or lacks authority to handle borrower information.