Faxless Payday Loans and Workplace Calls

Q: Do payday lenders ask for documents to be faxed over and will they call my work? (shortened for title) ~ Rob, Stoke.

Many lenders these days offer faxless payday loans online. There was a time when the chances were much greater that you would be asked to fax across bank statements or payslips in order for the application to be processed. This wasn’t always forced, but it would be a common protocol when the lender requires extra supporting documentation if they see greater risk in the application put forward. Every responsible lender initially conducts a credit check with one of the major Credit Reference Agencies (CallCredit, Equifax or Experian). If the score meets their criteria then they will usually approve the funds to be quickly sent across through the Faster Payments Service.

Otherwise, they will instead decline and usually direct on to a third party. Whilst faxing is not generally asked for in this particular sector any more, we have noticed that some companies instead make quick calls to your workplace. When they do this it will only be a brief phone call where they will just look to confirm that you work where you stated on the form. They won’t ask questions about how much you earn, or how long you have worked there. Your employer wouldn’t be able to disclose such information anyway. Some lenders may choose to speak with your directly. This is common in the instalment sector with a few companies. One such example being Oakam.

Faxless payday loans have become more common over the years due to firms understanding that potential customers don’t wish to jump through hoops and have to wait around. Sending a fax (or uploading documents) is especially off-putting due to the personal data attached to bank statements that you don’t want someone seeing who you don’t know and trust. Service providers want to deliver a hassle-free and swift process and so this is why they are more likely to make quick courtesy calls to your workplace or to you yourself. If they happen to be unsure about any particular lead then they are more likely these days to simply decline it.

Another reason why they’ll be doing this is that many are setup as brokers as well as lenders. This allows them to still make a profit from referring the declined applicant on to a third party where a potential lead can generate a commission. We would advise that you never agree for a lender to pass your details on to third parties because you usually start getting brokers chasing you up alongside receiving unwanted emails and text messages. You should always be given the opportunity to opt-out of this when you make the application. If you are declined then it is recommended to not quickly apply elsewhere since this could damage your score.

The best approach would be to uncover just why the decline took place. Picking up a free credit report is always a good start. You can do this with CallCredit’s Noddle, or you can simply use the free trial period with CreditExpert. Once you have this data you can start to make corrections. If there are any defaults then it will be important to find out where these accounts have been sold and to get them paid and marked as “Settled”. Just remember that bankruptcy, CCJs and defaults stick on your record for 6 years. It is difficult to obtain funding during this time, but you can clean up and make improvements along the way.

If you are in desperate need for a loan then there are options available if you can secure the agreement (logbook) or involve a third party (guarantor). The best option of this pairing is the guarantor choice due to the competitive interest. You can have a poor credit score, but as long as you can afford the repayments, you have a stable income and can find a suitable backing then you can be accepted and be funded as quickly as today. If you have past debts then you can even use some of this money to consolidate your debts. Having to disclose documents would be more likely with this type of product where thousands can be borrowed.