Will a Lender Contact My Employer?

Author · Modified on 20 October, 2023

A lender might contact your employer during the underwriting process to confirm your eligibility – but they will not say where they are calling from.

However, it is important to note that if a lender contacts your workplace, they will usually call to speak to you rather than your boss or anyone else in your place of work. The purpose of the call will usually be to verify your employment details, something which is key to approve your loan and confirm that you are earning a regular income to make repayments.

Before you start to worry though, you should keep in mind that not only will lenders most likely be discreet about the reasons they are calling, they are also not obliged to mention where they are calling from.


If a lender contacts your place of work, it will be to confirm your employment status, not to speak to your boss!


Do Personal Loan Companies Contact Your Employer?


  • Yes, a lender may contact your employer.
  • A lender could call to confirm your employment status or follow up on a repayment.
  • However, the lender will only ask to speak to you and your employer will not be involved or even told what the nature of the call is about.
  • This is part of the underwriting process.


Why Do Lenders Call Your Employer?


To Verify Your Employment Status


It is not uncommon for loan applicants to attempt to claim that they are working somewhere that they are not, in order to seem like a more attractive loan candidate.

Confirming that you are employed is key for most lenders to ensure that you have a regular income coming through. Calling your employer and being put through to you acts as assurance that you are employed – provided that the numbers match up to the company’s.


To Confirm Your Personal Information


Many lenders, though not all, will need to speak to you over the phone to confirm your information. Information they need to confirm includes the amount you wish to borrow, your monthly expenses and whether you are in debt management.

If they cannot get hold of you by email, mobile or landline, they may try your work line as a last resort.


If You Have Not Repaid Your Loan


In addition to the above, if you have failed to repay your payday loan, the lender may contact you after failing to get hold of you by traditional means i.e. your mobile or home line. Approximately 91% of borrowers are unable to repay their payday loans at the end of a term.

After they have tried to contact you by email and phone, they may call you at work as a last resort.

However, as with an initial call to confirm employment status or information, the lender will only ask to speak to you and your employer will not be involved or even told what the nature of the call is about.




How Can I Prevent a Lender from Calling My Employer?


The only reason a lender will really want to speak to your employer rather than to you directly would be if you have skipped a loan repayment.

If this is the case and a short term-lender needs to call an employer due to skipping a repayment, you should call-up the lender directly to come to an alternative arrangement. If it is not possible for you to make the full repayment on a monthly basis you can request a new repayment plan to increase the period of time in which you can repay the loan.

A lender will usually call your employer as a last resort, so it is important to respond to any messages from the company themselves.


Are There Other Ways to Confirm My Employment Status?


If you feel strongly about the lender calling up your workplace to guarantee employment status, then there are certainly other ways that you could confirm your employment status with your lender.

If your loan application is being processed, you can show a pay stub or a copy of your bank statement to prove your employment and that you are getting paid every week or every month – and this shows confirmation of your job and that you can afford to pay your loan on-time.

Some lenders do not require proof of employment and will not ring your employer, but some might require proof of income and this is where sending documentation can help.


How Will a Lender Decide If I Am Eligible For a Loan?


The lender is required to ensure you meet all necessary requirements to be eligible for a payday loan, which can but does not always include ringing your employer.

They will need to verify that you are an adult over the age of 18 and also that you are a US citizen. There are other eligibility requirements, namely having a live checking account, and some lenders will require you to have a minimum monthly income – sometimes of $500, sometimes of $800.

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