The issue of credit without consulting an employer is very special, because credit without consulting an employer is now the rule rather than an exception. Inquiries to the employer will only be made if there is a legitimate interest in exceptional cases. It is also understandable that customers do not necessarily want their supervisor to be informed that they are about to take out a loan.
So if you had any fears in this regard that the employer inquiry is now becoming the standard, you can breathe a sigh of relief. It is not that way, of course the loan is given to employers without asking. It can only be different in exceptional cases. For example, whenever it appears that the proof of income has been manipulated or something similar.
Can the bank consult the employer?
As a rule, all loans are given to customers without an employer query. If only because the provisions on data protection at banks only allow such information in strictly regulated exceptional cases. The bank explicitly needs the consent of the customer if a query to the employer is planned. In addition, the reason for the query must not be given to the employer in detail.
The credit applicant did not authorize the bank to consult the employer solely because he stated the name, address and telephone number of his employer in the loan application. For this reason alone, the bank cannot simply consult the employer. Why too? The bank can see how much the loan applicant earns in the current income statements submitted. If the bank wants to know more about the employment contract and its status, it is entitled to ask the loan applicant.
To provide evidence that the contract is permanent and that the contract has not been terminated. The loan applicant provides everything that the bank demands. A loan without asking the employer is a matter of course today. The bank does not ask the employer.
Rumors of bank calls to employers
There are borrowers who report on Internet forums that the bank called the employer to speak to the loan applicant. But that alone is not an employer question. With such calls, banks want to make sure that customers work where they say they are, or they actually have a question for the applicant to answer by phone.
In many cases, the bank grants the loan to employers without asking, despite the fact that they have the right to be asked for extra in the loan application. If a loan applicant deletes this section of the application because he does not want an inquiry to be made, he also makes himself suspicious. If you have nothing to hide, you should always leave the passage. This is the only way to prevent the bank from having doubts about the accuracy of the information and asking. Modern credit contracts no longer contain the passage that automatically entitles banks to consult the employer. Borrowers can inform the employer of the borrowing
When an employer consultation is important
This can be the case, for example, with construction finance or real estate finance. Here, however, the borrower also has the opportunity to speak to the employer. There are some larger employers in Germany that provide a loan for such cases, which is characterized by particularly attractive conditions for the employee.
There are also employers who, in turn, agree in the employment contract that the employee may not take out loans from third-party banks. This is particularly the case when employees work for banks themselves. It goes without saying that Fine Bank does not like it when its employees take out a loan from Agree Bank or Across Lender. Employees who do not act in accordance with the contract must take special care to ensure that the loan is granted to employers without asking.
However, if there are doubts about the authenticity of the submitted documents because applicants submit documents that are obviously manipulated, the banks are entitled to ask the employer. If the suspicion is confirmed, the loan will not be paid out. The loan applicant can even expect to be notified of credit fraud.