• Payday loans providers don’t speak to your employers…

Unlike some conventional lenders who require some form of comfort from your employer before approving your loan, payday lenders keep the contract strictly bilateral. Most payday lenders request for your employment status and details, hence there is a genuine reason to get nervous that the lender would contact your employer. However, reputable payday lenders would not contact your employer, as it is strictly a contract between you and the lender and would never directly expose such to your employer.

…but sometimes they may have reasons to do so

There are two major circumstances when a payday lender may contact your employer; to validate your employment status or as a last resort to force you to pay back the loan when you default. Since some lenders only lend to salary earners and when they are not convinced of your employment, they can do a quick background check on your employment status just to validate the information you have provided. As a way of validating your employment, some lenders use third parties to validate your employment status, and such may require contacting your employer but be sure nothing about the loan will be revealed and your employer would not have any idea of your loan under this circumstance. Often times, they do this discreetly and sometimes informally, to ensure it does not have any implication on your employment or social status.

However, when you default on the loan, payday loans or their debt recovery agents can be quick at contacting your employer to put pressure on you to pay. This is often done formally and

depending on the lender, it may be like an ambush, as your employer would not want any embarrassment. In fact, some debt recovery agents would not just inform your employer, they would visit you during office hours to request for repayment, sometimes making it obvious to your colleagues that you are owing. Whilst you must make efforts to ensure you pay your loan as at when due to avid undue exposure, it is worthy to note that not all payday lenders use this “ambush” approach. Therefore, it is important to search, and review offers from different lenders on nairaCompare.ng and if need be, ask questions before you decide on the lenders to go with. Afterall, nairaCompare.ng gives you a variety of lenders and loan options to compare and select, so express yourself and make the right choice.

…and you can avoid that embarrassment

If a payday lender seeks to confirm your employment, you can speak to such lender on alternative ways of making such confirmation without speaking to your employer. For instance, you can provide your bank statement that shows the monthly salary credits. You can provide your recent payslips and identity cards or any other documentation that may help to convince the lender of your employment status. Likewise, if you are concerned that you may miss a repayment timeline, be proactive in contacting your lender to discuss the restructuring of the loan and agree on when the payment will be made. This is better than waiting for a default. Worse still, some borrowers avoid lenders when they default, thus forcing the lender to contact their employers. You can come clean with the lender and make arrangements on how you will pay the loan, it is more honorable and that helps to avoid undue embarrassment, such as a negative report to your employer.

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