Applying for a loan and them requesting access to your checking acvount

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24,807
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Upstate NY
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Wife was applying to refinance a student loan for her daughter. The loan company wants the logon userid & PW to checking account to auto deduct. The loan company can ACH a payment without needing access to checking account userid & PW. So what is going on. It's not a scam. They will do the loan at a higher rate of you do not provide the access.
 
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15,002
Location
Upper Midwest
Uhh, no. There is no legitimate reason they need that, as you say the payments can be deducted without that information. What if you didn't have web access to your account? Not all banks provide that, and not all customers take advantage of it for the ones that do. No way I'd fork over that to anyone.
 
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260
Location
New Jersey
Sounds a bit weird. I have a few vendors that pull payments out of my checking account. During set up the only thing I provide to them is my routing number and account number that can be found on the bottom of your check. Providing a log in and a password!? I don't think so.
 
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8,933
Location
MA
Either the person you talked to doesn't know what they're talking about or it's some kind of scam. Normally you just sign some direct deposit paperwork. Ask them to send you a copy of the paperwork.
 
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260
Location
New Jersey
Donald please don't provide that info. Are you sure you're dealing with a legit loan outfit and not a scammer masquerading as one. It would take 2 seconds for someone to do a lot of damage. Allowing access and then changing the password a day or two later would be too late. A legit outfit does not need that info. Dangling a lower interest rate to encourage you to do that is a big red flag.
 
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6,658
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Katy, Republic of Texas
Originally Posted by Aredeeem
... During set up the only thing I provide to them is my routing number and account number that can be found on the bottom of your check. Providing a log in and a password!? I don't think so.
This. No need for them to have complete access to the account.
 
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2,033
Location
Wisconsin
Run away from that. Sounds like a scam. Why refinancing anyway? Depending on the employer, student loans may be eligible for the Student Loan Forgiveness Program. Refinancing makes someone ineligible.
 
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24,425
Location
Central Florida
Originally Posted by Wolf359
Either the person you talked to doesn't know what they're talking about or it's some kind of scam. Normally you just sign some direct deposit paperwork. Ask them to send you a copy of the paperwork.
Yep.
 
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24,072
Location
MA, Mittelfranken.de
Originally Posted by Donald
Wife was applying to refinance a student loan for her daughter. The loan company wants the logon userid & PW to checking account to auto deduct. The loan company can ACH a payment without needing access to checking account userid & PW. So what is going on. It's not a scam. They will do the loan at a higher rate of you do not provide the access.
Something smells rotten with this whole deal. Run don't walk away from this sort of nonsense.
 
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237
Location
Minneapolis
I had a problem with a loan years ago, they wanted the same thing. I gave up arguing with them and setup a checking account at a different bank from my primary and had an auto transfer done five days before the loan was due to be paid. This worked for me until I got around to reporting them to the attorney general of my state and about two months later I got forms for automatic withdrawals. Still kept the checking account but changed the password. Also let the bank know what was going on,if they tried something funny. It could be they want to see if there is a change in financial situation. Filtering through a remote checking account is an effective shield.
 
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