Credit Request Employer Specify
Specify the employer when making a loan request – this will cause a lot of embarrassment for most potential creditors. After all, a loan is a private matter and the employer should know as little as possible about it. After all, you do not know how he would evaluate this information. From the perspective of the lending bank, it is understandable when asked about the employment relationship. Because the labor income is usually the basis for the operation and repayment of the loan. Read http://www.fondazione-blu.org/payday-loan-consolidation-reviews-contact-us-to-consolidate-your-payday-loans/ for a critique
First of all, the reassuring message that an employer learns of a worker’s loan is the exception rather than the rule. Usually, the bank does not ask the employer about the employment relationship. Nonetheless, it is quite common for employers to provide credit inquiries. For example, without the specification, the request can not be completed online in many cases.
Inquiries with the employer – only with explicit consent
At the latest, the bank knows who the employer is when proof of income has to be submitted. That’s a common requirement. The statement of the employer and the submission of payslips are usually only to check whether the information provided in an online loan request, are also correct. The lender is thus not yet entitled to collect from the employer inquiries about the borrower.
This is only permitted if the borrower has expressly given his consent, as in obtaining a credit bureau report, and the bank is exempted from banking secrecy. Occasionally, this is provided for in loan applications and forms. And petitioners who do not want this should pay attention to such a clause. There are usually enough alternative providers who refrain from such a provision.
If the employer is addressed directly
Irrespective of this, the employer is involved in loans when the bank enforces its claims by means of wage seizure or as part of a wage assignment. The seizure of wages is a form of foreclosure, and the assignment of a wage is a contractually agreed possibility to gain immediate access to the debtor’s wages if they default on payment or do not pay at all. In these cases, the creditor, the bank, can contact the employer directly.
The possibility of wage garnishment or subcontracting are common precautionary measures for loans to consumers, for example installment loans, and a reason why you have to provide the employer with a loan request. The bank will know immediately who to contact if it does. However, the security interest does not mean that there is any right to information. Again, explicit consent from the borrower is required.