On regular accounts (non-margin) they will ask you via email or will call you if desperate like eTrade was. I am guessing if you have a sell order out there, maybe they won't bother to ask and move onto the next fish. I've seen brokers cancel sell orders saying they were too high over the current ask.

While the interest sounds great, it's only for the little bit of time they short your stock to death which could be hours or a few days. Remember, they don't need to long to drop it and buy back.

In my view, it has to be the dumbest thing to loan ones shares as you are helping others tank the stock you own. Must be some stupid people out there or else they wouldn't call. Maybe not a lot of them, but they manage to scare up some shares.

One more thought: Are they worried the stock will run up and trying to get enough shares to counter if it does? That would be a good problem for investors to have.