Do car loan companies contact your employer?

I want to be prepared and notify my employer if a car loan company is going to be contacting them. Is this likely to happen?

Answer
Yes, loan companies usually contact your employer during the application process to verify both your income and the date you started working. This is necessary because even though employment information does appear on your credit report, it may be out of date or incomplete.
Most employers require verification calls to go either to their HR department or to a third-party company that provides the requested information. Less formal companies may direct these calls to the employee’s supervisor. This can cause problems for the company, though, so most require HR involvement for consistency, accuracy, and privacy reasons.
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Jim Donaher
Answered on Mar 12, 2021
Jim Donaher is a freelance writer and manager with over 35 years' experience in the insurance, banking, and investment management businesses. He provides expertise on a range of topics and is able to explain complex industry information in layman's terms. Jim is the author of two books, including Call Him, He's Home: A Guide to Prayer for Regular People and Then Larry Smiled, a novel about life, death, accountability, and salvation. Taormina, Sicily is his happy place!
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