28 Nov Will a Payday Lender Contact My Employer?
No, the payday lender will not contact your boss or workplace when you make a loan application.
You can rest assured that there will be no potential awkwardness to have to worry about. It can be a common worry for applicants that their employer will be called to confirm their employment and mention that they are applying for a payday loan.
Whilst the lender needs to confirm employment, they will be very discrete. Companies like Badger Loans will never call your workplace, but they may request a copy of your payslip to confirm up-to-date employment. Similarly, our partners may call your workplace and ask to speak to you, without mentioning where they are calling from. And this is common for a lot of credit cards or insurance products, so most employers will not be alarmed.
Why does the loan application ask for my employment contact details?
The lender will ask for your work number in the application page as a way to get proof of your employment. It is also a last resort as a way to contact you if you are heavily in arrears.
What is the underwriting process for a loan?
Underwriting is a fundamental part of the instant payday loans process to get confirmation of your details and to carry out final checks. The underwriting process helps the lender decide as to whether you meet affordability checks and can be approved a loan or not.
Are my employment details shared to third parties?
No, the information you provide a payday lender is confidential and will not be shared with third parties. This in line with regulations that are implemented by the Financial Conduct Authority to ensure that lenders adhere to high lending standards.
When does a payday lender contact your workplace?
- In order to confirm your employment
- To verify details of the loan
- If you have defaulted on payments
There are just a few exceptional circumstances in which a payday lender might end up contacting your employer.
To confirm your employment
For example, most lenders will need proof of regular employment in order to ensure you have a stable income coming in each month. One of the best ways to confirm where you work is by calling your employer in order to get through to you.
This makes it very clear that you are employed by the place you have stated in your application, provided that the number matches up with a legitimate employer (lenders will usually have a system for checking this).
To verify personal information
Another reason may be to confirm information that was included in your loan application. This may not necessarily always be the case, but it is something to be aware of. The potential lender may contact you in order to confirm things such as the exact amount you would like to borrow, whether you are in debt management or about your monthly expenses.
In the majority of cases, the lender will contact you directly through email, mobile or by landline. If these attempts to contact you all fail then trying through your work line will be the last option.
For more information, see the checks carried out for payday loans.
Failing to make loan repayments
If you fail to make repayments on your loan then this can be another situation where the lender could end up contacting your workplace.
Usually, this will be after a number of other attempts have already been made to contact you to retrieve the loan. For example, by phoning your landline, mobile, emailing or sending letters to you.
If all of these attempts have ended up failing, then the lender could end up with no other choice but having to contact your employer.
As a result, this is why you should always make sure that you know that you can afford to take out a loan in the first place. If you are concerned or potentially embarrassed about the idea of your boss being contacted, remember that this would only happen if you fail to respond to any attempts to contact you.