Payday Loans State-Wide Database (Veritec and CoreLogic Teletrack System)

Payday loans state-wide database (or Deferred presentment service database) is the official database containing the data on the payday loans (deferred presentment transactions) by licensed providers (payday lenders). The database was created by Veritec and supports by this company today.

The State-wide Database were legislated in 13 states (Alabama, Delaware, Florida, Illinois, Indiana, Kentucky, Michigan, North Dakota, Oklahoma, South Carolina, Virginia, Washington, Wisconsin). 

Only a legal payday lender has access to the state-wide database.

Purposes for creating such a database:

  • On the one hand, this is how the government strives to shield the lender from the insolvent borrower;
  • On the other hand, to save the borrower from the debt hole. The borrower cannot extend a second loan when the first one is still outstanding if this rule is legislated in a particular state. When extending the loan, the lender must indicate that the client has been checked through the database. 

Lender’s obligations:

  • checking the person to whom the company is going to give the payday loan through the state database;
  • adding data about the payday loan to the database (borrower’s personal data, loan amount, loan term);
  • adding data to the database if the loan is paid back;
  • paying the charges for each record (extended payday loan). As a rule, the lender pays an average of $0.9. This money is distributed between the provider that runs the database and the state body that controls the loan company operating. 

Currently, the rest of the states discuss the development of such a base. Official payday loan companies go against these changes. The main concern is that this can tighten the official companies operating and the clients will move to illegal websites. 

There are data showing that the number of payday loans decreased by at least 30% after the central database was legislated in states.

According to our information, the main reason why the companies resist this law is that the lenders will not be able to provide a large number of loans to the same person uncontrollably. Statistically, in 80% of cases, people extend the terms of such loans or get the new loan to pay back the previous one. But the state government strictly controls the number of outstanding payday loans. 

Companies that collect, process, and store data on short-term loans:

Veritec Solutions

veritec solutions

It is a main privately held company that provides a central database and cooperates with the government since 2001. The first state to obtain access to the database was Florida. 

Veritec claims that it collects over 20 million short-term financial transactions every year in real-time mode and the database is available 24/7. 

All information is provided for each state separately. For example:

All websites have a similar design and share the same data from Veritec.com. To obtain access, a company needs to have a lender license in a particular state and a login with a password. 

An ordinary user (client) cannot find any information about himself out of curiosity (for example, how many outstanding loans he has). 

CoreLogic Teletrack

corelogic teletrack

CoreLogic Teletrack is a credit reporting agency. It collects information from various resources – so-called financiers. They are different companies such as payday lending firms and credit card companies as well as banks and credit unions. Public court records are also used by CoreLogic Teletrack in order to create a complete picture for a record.

In other words, CoreLogic Teletrack issues a quite informative report estimating a score of a potential borrower.

This is not in the task of CoreLogic Teletrack to influence the decision of a lender either to give approval for a loan or decline the borrower’s application. Basically, a CoreLogic Teletrack record contains the information about a consumer’s credit history with regards to loans – payday loans also, and protects from fraud as well as helps to verify a borrower’s information.

The most frequent clients that apply for CoreLogic Teletrack information are various companies that provide loans. They are mortgage companies and collection agencies as well as different online payday lending companies and the like.

It is important to know what CoreLogic Teletrack is and how it can affect borrower’s chances of getting a payday loan.

CoreLogic Teletrack provides the following information about a borrower:

  • The number of payday loans applied and paid off
  • The cases of late or defaulted repayments as well as any charge-offs
  • All the records about a borrower’s filing for bankruptcy of court sues are also reflected in the report.

This information is taken into consideration by the majority of lenders that offer payday loans. The best part about them is that the majority of payday lenders still have very lenient policies and they do not reject customers even with a history of bankruptcy and late or defaulted repayments.

As with the credit report, it is also recommended to get a look at one’s Teletrack record on a regular basis. This helps to avoid and correct, if necessary, the mistakes and make sure that its information will not be the reason for loan application rejection.

Unlike the Veritec database, CoreLogic Teletrack enables an ordinary user to get the credit report where he also can find out the data on his short-term transactions. Moreover, the user can apply for correcting information if the lender turned down his application for credit based on the false information in the database.

Other Credit Report Agencies

All customers know about three major national credit bureaus.
These are Equifax, Experian, and TransUnion. But there are also a number of smaller companies providing supplementary data to avoid fraud.

Lenders often use additional sources to verify the credit history of potential borrowers. All these information collecting agencies carry out their activities under the Fair Credit Reporting Act.

The most known agencies are Certegy Check Services, ChexSystems, InnovisCharity Services. The ID verification to avoid, monitor customer activity with the accounts, verify customer’s checks validity, show details on payday and installment loans, auto loans, telecommunication accounts. They mainly cover a low-income consumer segment.

The list is not complete as there are very many bureaus offering credit check services. Detailed information can be found in the List of Consumer Reporting Companies by CFPB.

All of the above-mentioned bureaus will provide an annual report free of charge upon application receipt. Some agencies can freeze customer’s report if they get such a request.


Questions/Answers

How Long Does a Payday Loan Stay in the System?

Credit history is actually a person’s financial reputation. The main purpose is to determine the risk when issuing a loan.

Payday loans do not work like regular loans.

The records of traditional loans may be kept for 6-10 years.

Payday lenders do not usually report to the credit bureaus, even in case of overdue repayments.

But the payday loan may be filed once it is passed to the collectors after the lender sells the debts.

How to Find Out if You Have Outstanding Payday Loans?

CoreLogic Teletrack enables an ordinary user to get the credit report where he also can find out the data on his short-term transactions.

A report can be obtained through the official site of CoreLogic Teletrade.
It should be printed out and filled in. The customer should post a duly signed form to the company directly. And the result will be ready in 2-3 weeks. If the user finds any irrelevant and untruthful information, then he should contact the Member Services Department by telephone stated on the website.
All credit reporting companies should provide a report free of charge at least once per 12 months.

Moreover, the user can apply for correcting information if the lender turned down his application for credit based on the false information in the database.

And every customer should remember he has a right to dispute information stated in the report.

What is No Teletrack Payday Loans?

A no Teletrack payday loan is a loan issued without a Teletrack check. In other words, a lender will approve a loan using only a report from the traditional rating agencies such as Equifax, Experian, and TransUnion.

In this case, no checks are carried out on the borrower’s history on past short-term loans. Usually, no Teletrack payday loans are small loans from $100 to $1.000. And they are given maximum for 14 days.

When the applicants need cash immediately they may look for payday lenders who will instantly approve a loan request. It mainly refers to the borrowers with a bad FICO score, bankruptcy in the past or fraud activity. And in view of high risks, the lenders are charging very high commissions.

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