Your lender will never contact your employer when applying for a loan. When applying for a loan, you will typically have to provide employment details. This can make many applicants nervous that their employer will be contacted by the lender – but fear not! A reputable lender will never directly let your employer know about the loan you have applied for.
When applying for a loan, the lender will need to have confirmation of your employment, however this will be done very discretely. To confirm your employment status, you may have to provide a recent copy of your payslip. Additionally, our partners might contact your place of work for further confirmation, however they will not disclose any information about why they are calling, and simply ask to speak to you.
This type of call is common with many different financial products, such as insurance policies and credit cards, so your employer shouldn’t be suspicious about the call.
Whether your applying for a personal loan, guarantor loan or otherwise, with any loan application, you will typically have to provide details of your employment. These details can help the lender assess whether you’re financially capable to manage the loan repayments. If your employment details show that you earn enough and are in a stable job, you may have more of a chance of success with the application.
The contact details of your workplace might also be required from the lenders, as this helps to show proof of your employment. These details may also be used as a last resort if you do not repay back the loan.
Many borrowers worry that their employment details will be shared by the lenders to third parties. However, this is not the case. The information applicants provide lenders with is confidential, and will never be shared with any third parties. This is thanks to the Financial Conduct Authority (FCA), the UK’s regulatory body that makes sure lenders keep up with ethical lending standards.
The main reasons a lender might call your workplace are as follows:
Your lender may also call your workplace for a number of other reasons, however most of these are rare and due to exceptional circumstances.
Most lenders will require proof that the applicant is in regular employment. One of the most effective ways to check this is by contacting the workplace through the details an applicant provides. Whilst lenders may use this as a method of checking the detail in your application, they should always be discrete and never shared the reason for their call with your employer.
Your lender may also contact your workplace if other means of contact have failed and they need to get in touch with you. This can include confirming details of your application (e.g. the amount you want to borrow and for how long), in addition to reaching out to collect any outstanding debt.
When a borrower fails to make their loan repayments, lenders might also have to contact their place of work. This is usually when all other attempts of contact have failed, leaving the lender with no choice but to call up your employer. This is just one of the many reasons why you should always keep up with your loan repayments, and not avoid when lenders try to contact you about this.