We have someone at the bank that thinks we should ask an employee's supervisor prior to doing a loan for an employee. I think this is inappropriate and probably violates their privacy as well as possible harassment and/or discrimination. Does anyone have any thoughts as to how I can convince this person this is not the right thing to do?

What would the supervisor's input do? Would that factor into the loan decision? How would you do an adverse action if it did, especially if the applicant credit qualifies in every other way?

You've got privacy, harassment, possibly ECOA if they are a protected class, retaliation.

Just a bad idea.

Bad idea. My experience has been there is a designated officer that handles all employee loan requests. Anyone who reports to that officer has a separate officer to review their loan request. This keeps personal information contained to only one or two officers in the company. I personally do not believe an employee's supervisor should be contacted. Do you contact supervisors of the customer's loans that you approve? Why would you treat your employee any different or under more scrutiny?

Maybe the person who thinks this is such a bright idea should be asked, "Have you ever had a bad boss?" Most people have, at some time or another, and those who haven't, will someday.

People aren't perfect, and that's why we have checks and balances to prevent abuse of power.