Do payday lenders call your employer

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At this age and time and especially considering the current situation of the world’s economies, almost everyone is familiar with payday loans; not just what they are, but also their general manner of operation. The latter will obviously vary from country to country or state to state depending on the work environment and jurisdiction of the land.

In the UK the payday loans application process encapsulates a 60-second experience, where the applicant will fill out basic details and receive an instant notification of approval or decline. But what does that actually mean for verification reasons?

Well payday lenders possess the ability to check your details on several databases to verify your identity and ability to repay the loan. This means that they DO NOT contact your employer for any reason. In fact they don not even contact the applicant as there really is no need to.

Variations from country to country

The inherent variations have however been on the decline; a situation that can be attributed to a number of factors including international cooperation and trade relations, international jobs and even the emergence of international dealers in payday loans. Some attributes such as the Annual Percentage Rate and Effective Annual Percentage Rate can also be observed whenever these loans are involved with only slight differences appearing in the loaning process.

paydaylenderscontactLately, payday lenders have faced significant opposition and even lawsuits from various critics, debt charity groups as well as employee unions but this has not been of much harm to the industry. This is clearly evident since the industry continues to grow rapidly all over the world, especially in the UK, South Africa and many developing African countries. While consumer groups and other critics have notably been against payday loans citing reasons such as further impoverishment of the already poor, oppressive pricing structures and ignorance of legal restrictions, most beneficiaries of these loans continue to praise them for helping them meet unforeseen financial demands. Weighty complaints have also been witnessed in countries or states of the USA where such loans have been banned or the underlying terms and conditions been made too stringent and unbearable such as contacting your employer.

Same day approvals

As variations reduce and integration rises, it has become increasingly easy to obtain these loans from online websites which are also less bound by any countries legal provisions. Loans from these sources generally take about a day to process and their considerations are simply a constant minimum salary as determined by the particular lender and an employment contract of a minimum of two months in one’s current job. These lenders never check your credit situation; the above are the only major considerations in obtaining a payday loan. However, smaller limits as to the amount of loan they can avail is a common feature followed by usually higher interest rates due to the high risk level involved.

Another notable trend in the industry is the increase not only in the number of individuals getting into what is commonly referred to as a rat race (whereby they survive by taking a loan to settle another implying unending consumption and debt) but also the number of “ghost debtors” or debtors who can only settle their interest amounts. Both of these circumstances have led to a rising worldwide need to heighten the regulation on the payday loans industry. This has and continues to be accomplished through complete bans or successfully through various policies with objectives such as favourable pricing structures by aligning charges with costs, adequate disclosure of terms, conditions, policies and rates in advertisements, lenient collection practices and strict abiding to all the laws applicable in the governance of the industry.

All in all, payday loans can prove a most desired relief from a harsh financial situation but forward-planning and caution needs to be exercised before accessing a loan to ensure that one does not fall victim to the adverse practices and bad pricing witnessed with various lenders. Information about current developments in one’s state or country is also of indispensable importance so as to benefit from the payday loans without adverse repercussions.


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