As an auto lender, you’re likely aware of the due diligence required when purchasing consumer leads. Lenders must exercise the same diligence when referring — or selling — declined leads downstream.
Purchasing customer leads via referral programs has adapted as technology has allowed online lenders to communicate instantaneously with potential customers. Due to the nature of the online marketplace, lenders often are inundated with leads on consumers who fail to meet their underwriting standards. Many online lenders have entered into referral arrangements to sell declined leads to lending partners or online marketplaces.
Click here to read the full rundown on compliance issues to consider when buying and selling customer leads.