Did my employer break the law by telling aloan officer that I gave a2-weeks notice which resulted in my loan being denied?

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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 11 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.


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