Identifying Undisclosed Liabilities Before Submission
Undisclosed liabilities are one of the most common reasons a file stalls at credit assessment. A handful of cross checks catches them at fact find.
Cross checking the credit report
Every account on the credit report must appear on the fact find. Any account showing on the report but not declared by the client needs to be discussed. Sometimes the client genuinely forgot about an old account. Sometimes the account is held jointly with a former partner. Either way, the broker needs to understand and document it.
Scanning bank statements for recurring debits
Recurring debits to finance companies, car finance providers, and personal lenders signal liabilities that may not be on the credit report yet. New car loans in particular can take weeks to appear on a credit file. Bank statement review catches these earlier than the credit bureau.
Asking the direct questions
At fact find, ask directly about car finance, personal loans, BNPL accounts, credit cards, tax debts, and any private loans from family. Asking the specific question opens up the conversation that a generic question about liabilities often does not.
Key takeaways
- ✓Cross check every credit report account against the fact find
- ✓Scan bank statements for recurring liability debits
- ✓Ask direct questions about specific debt types
- ✓Document the explanation for any undisclosed account
How QualifyMate helps
QualifyMate extracts every liability from the credit report and flags discrepancies where credit report data conflicts with the supporting documents, helping brokers spot inconsistencies before submission.
Key terms
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