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Yes, a payday lender will likely contact your employer, but they will always be discreet. Payday loans are a popular way to get quick approval and same-day cash before payday. While a payday lender can be expected to contact your employer, they won’t mention where they are calling from and your employer should not find out that you have applied for a cash advance loan or similar. 

Find out more here about why and how a payday loan lender may contact your place of work.

Will my boss know about my payday loan application?

There are a few reasons why a lender may contact your employer, but they will always be very discrete about this and never mention where they are calling from. 

Lenders are not calling to speak to your boss, only to get through to you. You may be worried that you will be disturbed at work to discuss your loan application. However, in most cases, the lender just wants to confirm that you are fully employed and eligible for a payday loan. 

Why would a payday loan lender contact my workplace?

A lender may call your workplace if they have trouble getting through to you on your personal number or email and if you have filled in an application form to borrow money online for example. They may also call and ask to speak to you to confirm that you do, in fact, work where you claim to. 

To confirm your employment

To be eligible for a payday loan,  you need to have a steady income of at least $800 a month. Therefore, a lender may need to call your workplace to verify your employment. If your lender gets in touch with your employer and can get through to you, they can confirm that you work there. They do not need to talk to your boss, only to be put through to you.

To verify your information

Once you have applied for a financial product, the lender will need some way to verify the details you have submitted. The lender aims to check information about how much you want to borrow and how long you need it for. They will try to reach you via your personal phone number or email address first. However, if they can’t manage to get through to you, they might try to contact you at your work.

Will my employer be contacted if I fail to repay my payday loan? 

If you have failed to meet the scheduled repayments on your short-term loan, your lender will need to contact you. If they are unsuccessful at getting in touch through email or your personal phone number, they could try phoning your job. But remember, a lender will only ever call your workplace to talk to you, not your boss!

Do all lenders need proof of employment?

This will depend on the lender; not every lender contacts your employer. Even if your lender does, there’s no need for concern. It is standard practice for many forms of credit providers to call your employer to confirm you are employed, even for basic credit cards. Some lenders that don’t require proof of employment still need proof of income and may ask you to send documentation as evidence. 

Are There Other Ways to Confirm My Employment?

Yes, of course! While applying for your payday loan, you can show a payslip or a copy of your bank statement to show your earnings. This is enough to prove your employment and earn enough to be eligible for a payday loan. Verifying this allows the payday lending company to see that you can afford to pay your loan on time and approve your loan request.

Can I prevent a payday lender from calling my employer?

The best thing to do is speak to the lender directly. Calling your employer is usually a last resort for employers. But, if you are regularly avoiding their emails, phone calls, or letters, then they are likely to contact your employer next. So the best thing you can do to prevent this is to respond to their communications. 

If you are struggling to meet your loan repayments, you should talk to your lender to find a solution and never ignore them! As soon as you realize that you won’t be able to meet the scheduled payment that month, you should contact the lender to discuss a manageable repayment plan. Lenders may be able to renegotiate your repayments so that you can pay off smaller amounts over a more extended period.

If you are unsure that you would be able to keep up repayments, then look at alternatives to payday loans so that you can avoid any situation like a lender calling your employer.

Don’t forget, even if a lender needs to contact your work, they won’t tell your boss where they are calling from. However, if you wish to avoid the inconvenience of being approached while working, your best bet is always to reply when your lender contacts you.