Verifications 101: Q&A with Joe Muchnick

VERIFICATION OF EMPLOYMENT AND INCOME is an important service that Equifax Workforce Solutions offers via The Work Number® database, the industry-leading commercial source of centralized income and employment information in the U.S. But what does that mean for you as a consumer?

Joe Muchnick, Senior Vice President, Employer Services and Talent Solutions at Equifax Workforce Solutions, is answering some of the most common consumer questions about verifications.

To begin with, what is employment and income verification?

JM: When you apply for something - like a home mortgage, an auto lease, or government social service benefits - that process often requires proof of employment and sometimes income. A verification is simply a way to help ensure that your stated employment and/or income are accurate.

How does the verification process work?

JM: Let's say you are buying a car, and you apply for an auto loan. At that point, you would need to provide permission for the auto lender to verify the employment and income information that you stated on your loan application.

The lender could use "old school" verification options - like asking you to print off your last few pay stubs or attempting to call your employer to obtain a letter of verification. But those are labor-intensive, time-consuming, and sometimes fruitless processes - especially if you are car shopping on an evening or weekend!

Instead, many verifiers use automated third-party services such as The Work Number from Equifax. If you work for one of the 2.5 million employers that provide employment and income data through The Work Number, you can rely on us to provide instant digital verifications. This helps take the burden off you while supporting often quicker lending decisions. And that same, more seamless process carries through to verifications for other important life events - like applying for a mortgage, social service benefits, a lease, or a job.

Who is able to verify my employment or income?

JM: To begin with, an employment or income verification typically starts with your engagement, for example when you apply for something - like an apartment rental, a credit card or an auto loan.

A federal law called the Fair Credit Reporting Act (FCRA) regulates how information collected by consumer reporting agencies - such as Equifax - can be used and accessed. Under the FCRA, any verifier requesting your employment and/or income information must undergo a thorough credentialing process and have a legally required, permissible purpose for accessing your data.

So to carry through the car-buying example I shared before, the verification process would be initiated by you when you apply for the loan, and the lender must be a "credentialed verifier" with a "permissible purpose" under the FCRA to request the verification.

How do I know what information is being reported?

JM: You can visit The Work Number website to view and download your Employment Data Report (EDR). This personalized report shows what data of yours is on The Work Number. It also shows a list of every entity that has requested information on you through The Work Number within the past 24 months. If you see something that looks out of place, our website also offers you the opportunity to file a dispute. In addition, you can request a data freeze through the website at no cost.

How are verification service providers adapting to meet consumer expectations?

JM: Consumers have grown accustomed to instant gratification, a phenomenon that has been turbo-charged by the pandemic. Whether we are streaming entertainment, ordering a meal on-the-go, or even shopping for a mortgage on our phones, we've all come to expect immediate fulfillment.

This shift, enabled by technology, has accelerated the adoption of automated verification solutions. Verifiers also choose solutions that have expansive coverage in terms of employment data so they don't have to turn to manual, slower processes that could cause more effort and a slower decision for the consumer.

By delivering instant, digital verifications 24 hours a day, seven days a week, The Work Number helps keep some of life's most important moments moving forward - and at the digital speed that consumers expect.