Silly question

Debtfree2018_2

When you apply for a loan you are asked to provide the name of the company you work for, address and telephone number.

Would they ever contact your employer at the time of the application or later on?

Is there any risk that the company I work for would be contacted?

kloana

Debtfree2018 wrote: »

When you apply for a loan you are asked to provide the name of the company you work for, address and telephone number.

Would they ever contact your employer at the time of the application or later on?

Is there any risk that the company I work for would be contacted?

It's possible that they might contact your employer as part of your application process. It's not massively common (from my experience it's never happened to me), but it does happen. They also retain these details for arrears purposes! Work is just another point of contact if you fall behind with your payments. Once I applied for a loan with a non-regular lender (a well-known Peer to Peer lender) and they rang me to ask me some questions about my role - quite strange things, like is my company HQ local, how many employees do we have, etc. - clearly to verify that I really worked there. I was approved, by the way.

Regardless of if and when they contact work, no reputable, regulated lender would be able to disclose why they're calling to anybody except you (and after you clear some security questions) - without your express prior consent.

Debtfree2018_2

Thank you kloana, so they are going to contact my employer without notifying me first.

Wouldn't they get details through the credit check anyway why would they have to contact my employer?

Thanks so much for your quick reply.

kloana

Debtfree2018 wrote: »

Thank you kloana, so they are going to contact my employer without notifying me first.

If it's in their terms and conditions that they may contact (it still doesn't mean they will...just that they can), then that's your consent/notification right there. Even if they did contact them, it wuld be to confirm that you work there, how much you earn, etc. - they couldn't say "Debtfree2018 has just applied for one of our loans..."!

Wouldn't they get details through the credit check anyway why would they have to contact my employer?

Your employment status doesn't show on your credit file.

Who is the lender, out of interest?

Debtfree2018_2

Ah that makes all sense.

Zopa is the loan company.

Not sure why I'm getting so worked up over it, I think I don't want my company to know I'm in debt.

Thanks so much for your super quick reply.

Levi-

They always ask for this info - but I don't think they often use it. I've had several loans and never have they contacted my employer. I think it's just 'back up' info in case you vanish or something they can try contacting them.. dunno really just a guess!

Vikipollard

Could possibly also be to discourage people from applying who know they are about to be made redundant/lose job.


(The DFW forum has many (admittedly payday) loan threads where people seem to be out of work soon after the loan is in their account.)


No idea, but just a thought.