Will a payday lender call my employer?

If you've decided to take out a payday loan, you might prefer the lender didn't contact your employer. Here's what you need to know.

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Some payday lenders call an applicant’s employer to verify the applicant’s work status. Although lenders always promise to be discreet about it, some borrowers understandably may remain nervous about this. This guide will explore the whole issue and list lenders’ policies on this subject.

Which lenders call your employer?

  • Lending Stream. Lending Stream states that as part of its checks, it may contact your employer in a discreet fashion but will not share any details of your loan application.
  • Moneyboat. Moneyboat states that it will not share your details with other companies or contact your employer.
  • Piggybank. Piggybank states that it may check your personal data to verify your employment, but makes no mention of contacting an employer.
  • 247MoneyBox. 247MoneyBox states that as part of its checks, it may contact your employer in a discreet fashion to verify your position and your pay date.
  • Wizzcash. Wizzcash states that it has to contact your employer, but only for the purpose of verifying that you work there. Wizzcash states it won’t share the details of your loan application with anyone.
  • The Money Platform. The Money Platform states that it won’t contact your employer at any point.

Should I worry about it?

It’s understandable that you wouldn’t want other people snooping into your financial affairs, especially when you’re in dire straits. Payday lenders appreciate this and promise to be as discreet as possible when contacting an employer. Typically, the lender will call the main contact number to verify your employment.

If your employer has an HR department, the payday lender should be passed to this department. HR professionals are used to dealing with sensitive confidential issues like this, so you should be able to trust them to deal sensitively with any information revealed. If your employer doesn’t have a dedicated HR department, the call may be forwarded to the person who deals with your HR issues within the business.

Even if the full details of your loan were revealed, this shouldn’t have any impact on your career.

What is a payday loan?

Payday loans are high-interest loans over relatively short periods (traditionally up to a month, although most lenders now offer longer loans as well). They are designed to tide you over for a short period, allowing you to cover an unforeseen expense.

Payday loans along with other short-term, unsecured personal loans where the APR (Annual Percentage Rate) is 100% or higher are defined as “High Cost Short Term Credit” by the Financial Conduct Authority (FCA). You generally won’t see high street banks providing these – a number of new, predominantly online companies found success in the early 2000s offering payday loans.

warning icon Warning: Late repayment can cause you serious money problems. For help, go to moneyadviceservice.org.uk.

warning icon Please note: High cost short term credit is unsuitable to support sustained borrowing over long periods and would be expensive as a means of longer term borrowing.

How much do you need to borrow?


How long do you need to borrow for?


Name Product Available Amounts Monthly repayment Total payable
£50 to £800
Representative example: Borrow £200 for 6 months at a rate of 292% p.a. (fixed). Representative 1333% APR and total payable £386.61 in 6 monthly payments of £64.44.
£300 to £800
Representative example: Borrow £400 for 4 months at a rate of 255.5% p.a. (fixed). Representative APR 939.5% and total payable: £597.48 in 4 payments of £149.37.
£150 to £5,000
Representative Example: Borrow £350 for 6 months at a rate of 220% p.a. (fixed). Representative 651.4% APR and total payable £605.55 in 6 monthly payments of £100.93.
£100 to £1,000
Representative example: Borrow £400 for 6 months at a rate of 259.33% p.a. (fixed). Representative APR 947% and total payable: £750.78 in 6 monthly payments of £125.13.
£50 to £1,000
Representative example: Borrow £250 for 74 days at a rate of 292% p.a. (fixed). Representative APR 1300.5% and total payable: £398.00, in 1 payment of £74.00 and 1 payment of £324.00.
£300 to £1,000
Representative example: Borrow £500 for 5 months at a rate of 292% p.a. (fixed). Representative APR 1,297% and total payable: £867.05 in 5 instalments of £173.41.
£100 to £1,000
Representative example: Borrow £480 for 9 months at a rate of 133.1% p.a. (fixed). Representative 535% APR and total payable £959.04 in 9 monthly payments of £106.56.
£100 to £2,500
Borrow £350 for 8 months. Annual rate: 204% (fixed), representative APR 575%, total repayment: £572.80 in 8 monthly payments of £71.60.
£50 to £200
Representative example: Borrow £80 for 29 days at a rate of 292% p.a. (fixed). Representative APR 1281.8% and total payable: £98.56, in 1 payment of £98.56.

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Important information:
You should always refer to your loan agreement for exact repayment amounts as they may vary from our results.

What are my options?

If your lender claims it may contact your employer, there is little you can do to stop it other than refuse to take out a loan in the first place.

If you’re that concerned about your employer finding out about your loan, choose a lender that says it won’t contact employers. You can find out a lender’s stance on this via its website or customer support team.

You might also consider borrowing money from an alternative source such as the following:

  • Credit card. Credit card companies don’t need to contact employers to verify your employment information. If you pay off your balance at the end of the month, you won’t pay interest on purchases. There are several available credit cards for people with bad credit. These tend to have higher interest rates and lower credit limits though.
  • Overdraft. Ask if you can have an authorised overdraft added to your current account. The amount is typically smaller than what a payday lender may allow, and the fees for falling into an unauthorised draft are very harsh, but there is no need for anyone to contact your employer. Some bank accounts even provide interest-free overdrafts.
  • Credit union. Credit union loans are a more affordable source of credit than payday loans. The APR is capped at 42.6% in England, Scotland and Wales, and 26.8% in Northern Ireland, plus these bodies won’t contact your employer.

The bottom line

It’s understandable that you’re a bit edgy about payday lenders calling your employer, but if lenders keep their promises about respecting your privacy, there should be nothing to worry about. If you want to avoid this phone call, choose an alternative lender or alternative source of credit.

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