Will A Payday Lender Contact My Employer?

Published: November 1, 2022
By the Pachyy Editorial Team
The Pachyy Editorial Team comprises a diverse and experienced team of writers, researchers and subject matter experts whose aim is to provide you with useful insights, guidance and commentary on all matters related to your personal finances.

When you apply for a payday loan, lenders will typically ask you whether you are employed. If you are employed, the most lenders will attempt to confirm that what you have told them is true and that you are employed.

Some lenders accept copies of payslips and / or bank statements as proof that you are employed and have a consistent income. However, some payday loan lenders will need to contact your employer to confirm that you are employed at the company that you have specified on your application.

However, although a payday lender may contact your employer, lenders are notoriously discrete and typically do not mention where they are calling from or why they are calling.

Is It Common For A Lender To Contact Your Employer?

Not every payday loan lender will contact your employer. Sometimes lenders will be able to confirm your employment status by various other means (payslips and bank statements) and therefore do not need to contact your employer.

More generally, it is common for all lenders (even credit card lenders) to contact employers to confirm your employment status. Calling your employer is not a practise that is exclusive to the payday loan industry.

What Will A Lender Ask My Employer?

Lenders simply want to confirm that you are employed at the company that you have said you are employed at. Lenders have no desire to tell your employer why they are contacting them or to provide your employer with your personal information.

Typically, lenders will call your employer and ask if you work there. If your employer asks why the lender is calling, lenders will typically say that you are applying for a ‘financial product’, without specifying what financial product it is – as far as your employer is concerned, you could be applying for a mortgage, credit card or any other financial product.

Why Would A Lender Contact Your Employer?

Lenders will call your employer if they are unable to confirm that you have a job at the company that you stipulated on your loan application by checking your payslip or bank statement.

Alternatively, if your lender has attempted to contact you through email, personal phone calls, text messages etc. without success, they might attempt to contact you through your work. However, they will not speak to your employer about your loan but will simply look to redirected to speak to you.

Lenders could try to contact you for a variety of reasons such as:

  • updating your personal information
  • alerting you to better refinancing deals to reduce your APR
  • you have not kept up with your repayments and they want to work with you to craft an affordable repayment plan to ensure your credit score is not negatively impacted

What If I Am Unemployed?

If you are currently unemployed and looking for a new job, payday lenders will not contact your potential employers.

If you apply for a loan as someone who is unemployed, then lenders will not need to contact any potential employers. Although you can apply for a short-term loan if you are unemployed, you need to prove that you have a constant income stream.

Alternatively, if you are currently unemployed, yet apply for a loan as an employed individual, a payday loan lender will contact the business that you list as your employer to confirm your employment.

How To Find A Lender That Won’t Contact My Employer?

First and foremost, at Pachyy, we only work with fair, affordable and ethical lenders that share our mission to improve the financial health of our customers discreetly. The lenders that we work with take considerable effort not to contact your employer but to rather try and confirm your employment though other means.

Secondly, you can use our online application to check if you are eligible for a payday loan (regardless of whether you are employed or unemployed) and compare loans from various lenders, ensuring that you get the lowest possible APR payday loan.

Our application process takes 5 minutes, displays your potential loans as soon as you submit the application, does not affect you credit score and is completely free.