Did my employer break the law by telling aloan officer that I gave a2-weeks notice which resulted in my loan being denied?
Get Legal Help Today
Compare Quotes From Top Companies and Save
Secured with SHA-256 Encryption
Did my employer break the law by telling aloan officer that I gave a2-weeks notice which resulted in my loan being denied?
I was in the process of purchasing a house and in the final process of the loan, my loan officer did a final check up on my employment. My employer told the loan officer that I had given my 2 weeks notice, although, at this time I was still a full-time employee at my job. This resulted into my loan being denied. Did my employer had the right to disclose this information to the loan officer without my permission?
Asked on August 16, 2010 under Employment Labor Law, Michigan
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 14 years ago | Contributor
IF you had in fact given your two-week notice, then the employer did nothing wrong in disclosing that fact. Indeed, if you have given two-week notice, then the employer could NOT say that you had continuing employmet--if they had, they could have incurred liability to the lender for a misrepresentation. (They legally could have chosen to not say anything at all; but if they did disclose, they had to disclose the status, which, if you had given two-week notice, was that you had given two-week notice.)
If on the other hand you had not given notice, then they committed defamation against you: the public (to a 3rd-party) making of a negative untrue statement of fact that caused someone (the bank) to not do business (refinancing) with you.
IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.