Your banking details and payday lenders

Elizabeth Barry 19 November 2015

sending statements to payday lender

Why do payday lenders ask for your Internet banking logins? Everything you need to know before you submit your application.

If you've heard anything about payday loans from anywhere except the lenders themselves, that talk is likely to be negative. One area that causes concern is the online nature of the loans and how the application is administered online. How can you be sure that your information is kept secure, especially when it involves handing over your Internet banking details?

This quick guide will take you through why lenders ask for this information, what they do with your Internet banking logins, and how your financial details are kept secure during the process.

Why do lenders need my Internet banking details?

Payday lenders ask for your Internet banking details because it gives them a way to access your statements. This is one way payday lenders are able to process your application much faster than banks. Instead of you emailing your bank statements from the past three months, you provide your logins and the lender can access them instantly.

Do payday lenders log into my account to view my statements?

No. When you hand over your login details, the payday lender you're applying with will use a third-party company to access read-only copies of your statements. Popular companies that provide this service include Credit Sense and Yodlee. This is done almost instantly and – more importantly – securely. The payday lender will not have access to your account; it will only be able to see the information it needs to approve your application.

Online banking login

Is it safe to give my Internet banking details?

  • Payday lenders will not have access to your bank account and neither will the third-party service that facilitates the sending of read-only copies of your bank statements
  • Your Internet login details are not stored
  • The process is encrypted and secure

Do I have an alternative to sending my login details?

Most lenders will still let you send copies of your statements as PDFs through email to be verified manually. Keep in mind that this process usually lengthens the turnaround time by a few days, so the "quick turnaround time" that is usually the lure of paydays will be lost. However, if you are concerned about handing over your Internet banking logins, find a lender that offers this option.

Your payday loan questions answered

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6 Responses to Your banking details and payday lenders

  1. Default Gravatar
    Duane | December 2, 2016

    Do loan companies need your security questions ans. to access banking info. is it required?

    • Staff
      Anndy | December 2, 2016

      Hi Duane,

      Thanks for your question.

      Payday lenders do require your banking details but use a third-party company to access read-only copies of your statements.. This is done almost instantly and securely. The payday lender will have no access to your account, they will only use your log-in details to be able to see the information it needs to approve your application.

      Cheers,
      Anndy

  2. Default Gravatar
    Judy | September 16, 2016

    Advance America Payday Loans is asking me the same thing for my account online username and password. They did say that I can go a head and change my password tomorrow after the funds for the loan are in my account. Do you know about them.

    • Staff
      Elizabeth | September 16, 2016

      Hi Judy,

      I’m unaware of what service Advance America uses to verify your details but here is some information from its site you might find useful:
      “We respect our customers’ desire for privacy in managing their personal financial matters. The Payday Loan transaction is confidential, and your personal information will be treated accordingly. You can also be sure that all the information you submit online is sent through a secure server, and we keep your information in a secure database. One way for you to verify that our website is secure is to look for the security icon in the footer of our site that tells you that your information is secure and encrypted.”

      You may want to contact them and ask if they use a similar process to what is outlined above.

      I hope this helps,

      Elizabeth

  3. Default Gravatar
    safetynetcredit | June 19, 2016

    safteynetcredit are asking for my online banking passwords and pin is this right?

    • Staff
      Elizabeth | June 20, 2016

      Hi,

      SafetyNetCredit is a UK lender and the above information relates to Australian lenders. However, its service appears to work in a similar way as it uses Yodlee to access read-only access to your bank. On its website it states:

      “SafetyNet Credit is permitted read-only access to your current account so will only ever be able to view your account.
      Your bank details are encrypted in transit and stored securely for a short period on our servers before being transferred and held securely by our data partner, Yodlee. Yodlee are a provider of online banking solutions used by over 300 leading financial institutions and by over 30 million consumers globally. Your bank details are encrypted at all times. SafetyNet Credit or Yodlee do not have the ability to change any of your banking details or set up standing orders/direct debits.
      All data is securely handled in accordance with data protection laws and our privacy policy. SafetyNet Credit uses 256-bit encryption and are monitored and verified by VeriSign.”

      You might want to get in contact with your bank or SafetyNetCredit to discuss any concerns you might have.

      Hope this helps,

      Elizabeth

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