Yes, a payday lender can contact your employer to confirm your employer, but they will always be very discreet about it and never mention where they are calling from. Payday lenders will only call your workplace to talk to you, not to talk to your boss. Once you submit a loan application, your loan will be denied or put into “underwriting” and this is where the lender is trying to confirm your details, perform some final checks, and finally sign your loan for funding. To pressure you to make a payment, debt collectors can call your workplace.
Under the Fair Debt Collection Practices Act, this is allowed as long as they have no prior knowledge that their workplace does not allow calls of this nature. Many potential applicants for bad credit payday loans are concerned that when they apply, the lender will contact their employer. The Consumer Financial Protection Bureau, responsible for regulating payday loans at the federal level, says, “No, you can't be arrested for defaulting on a payday loan. All loans are subject to affordability, applicant verification and traditional credit checks through various national databases by payday bad credit responsible lending policy.
You may have taken out a payday loan, didn't repay it, and now collectors are harassing you; or you may have never touched a payday loan, but scammers claiming to be payday loan companies are harassing you. In addition, unless they can demonstrate their ability to pay it all back, borrowers cannot apply for more than one payday loan at a time. Even if you owe money to a payday loan company, the company and any associated debt collector are limited by the Fair Debt Collection Practices Act as to what they can call you. On rare occasions, you may be asked to submit bank statements to confirm your income when you apply for a payday loan.
If you get annoying phone calls about a payday loan debt you owe, you can send a stop communication letter to the payday loan company or your debt collection company, and the calls should stop. Employment is a key factor in getting payday loans online, so it's very important to check it out for a prospective lender. Your lender will never contact your employer when you apply for a payday loan or short-term financial product. FaaastCash is a reliable online payday loan referral service that helps people overcome their short-term financial emergencies You can rest assured, both payday loan applicants and borrowers that your prospective lending company will not contact your employer as part of the subscription process.
Whether you apply for a personal loan, a guarantor loan or a payday loan online, with any loan application, you will usually have to provide details of your employment. Default on a payday loan can result in bank overdraft fees, collection calls, damage to your credit score, a day in court, and a garnishment of your paycheck. If the payday loan company ignores your letter or if it violates any other FDCPA debt collection rules, report these actions to the Federal Trade Commission, the CFPB, and your local state attorney general.