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

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It's a way to allow somebody to take out funds from your account and is not needed for anybody to make deposits. Although I'd imagine any respectful banking institution still would not ask for your login information anyways. I'd tell them some strong words and try to put them on blast in every media outlet possible.
 
Originally Posted by Donald
It looks like they do it once to verify your account. Here is an explanation.

https://www.reddit.com/r/BitcoinMarkets/comments/40li0k/why_does_coinbase_need_to_log_into_my_bank/

I ran into something similar with VENMO. I receive money through Venmo and can link my debit card to transfer the money to (which is linked to my checking account) but they charge a fee. I can also link it directly to the checking account and they offered two ways to verify the account. One was a quick/instant method using a service called Plaid. They do the same thing - you login "through" their app into your bank's web portal. Thing is, they (Plaid, not Venmo) work with big names like Wells Fargo, Chase, etc so those banks are perfectly okay with this !

I opted for the old-fashioned, manual method that takes .... (gasp) .... 1-3 business days.
 
It isn't that the big banks are "ok" with services like plaid, it's that customers hand over the info without ever understanding what they've given access to. If you read what plaid is capable of pulling down from your accounts you'd understand what a data mine and trove that is. It's the equivalent of using facebook or Google logins for everything because remembering or understanding ach transactions lowers the rate of successful applications.
 
When I got a loan for my home, they wanted several months transaction printed and scanned to them. Nothing like what you're saying, OP.
 
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.


Do they also want gift cards and a travelers check?
 
Originally Posted by MNgopher
It isn't that the big banks are "ok" with services like plaid.....

Is it ultimately up to the customer ? Sure it is. Reality is, these banks are in bed with Plaid with this. As you say, it's all about data and data is worth money so you can about bet that Plaid is kicking back something to the banks.... When you use Plaid, it gives you a list of participating banks so you can be sure that they're "ok" with it if they're allowing their names and logos to be used.

Wells Fargo and Plaid sign data exchange agreement
Citi invests in Plaid
Plaid signs data agreement with Chase

Scary, huh ?
 
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.

You have been here for 15 years and you think this is legit? Really? REALLY??

Of course either it is a scam or somebody is misunderstood.

All *anybody* needs is bank routing number and account number to empty your account. Heck, I could have financed my children's education if I had a check from you. NOTHING prevents money being removed once the "public" bank routing number and the number from your check is available.

Now agreed, that if I had indeed emptied your account to put my kids through college, I will be typing this from Grand Federal Hotel :)

Once again, in bold letters "NO, YOU SHOULD NOT GIVE THEM YOUR USER ID AND PW"

Raise heck to the company who is asking for it. Ask them to send you the written request and nail them to the wall.
 
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Originally Posted by tcp71
That is either a scam or otherwise illegal. Privacy law should be reviewed for your state.

If you voluntarily give the data 5hen it's ok. This is far more common practice than one might realize.

If you want to use MoneyGram online, you have to provide it this way.
 
Originally Posted by hallstevenson
Originally Posted by dlundblad
Originally Posted by Donald
It looks like they do it once to verify your account. Here is an explanation.

https://www.reddit.com/r/BitcoinMarkets/comments/40li0k/why_does_coinbase_need_to_log_into_my_bank/


If you had to find an explanation to this none sense on reddit, you should probably pass on this deal.

Did you follow the link and read the explanation ? Seems that you might not be that familiar with reddit. While it has a fair amount of garbage, it also has endless amounts of valuable and accurate information.


I'm not bashing Reddit. Don't misunderstand.

I do feel an explanation for this should come directly from the source though. If I wanted to prove Toyota's have airbags, I wouldn't post a link to BITOG with a comment from you showing the link from Toyota.
 
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Originally Posted by dlundblad
I'm not bashing Reddit. Don't misunderstand.

I do feel an explanation for this should come directly from the source though. If I wanted to prove....

Admittedly, the reddit discussion was for a Bitcoin "bank" that did the same thing, or wants to do the same thing, with people's bank accounts. Just being Bitcoin probably got a lot of skepticism from many but then I remembered the same process/concept with Venmo for "verifying" my bank details. As I said, I went the old-fashioned method of verifying it.

In the OP's case, given the lender that's asking for this - and they are a legit organization - I don't think it's a scam at all. I wouldn't do it but people will and probably completely safely. I'll bet money that no human sees the login details too. That said, they need a second option as a backup. I'm sure it's uncommon but there's probably banks out there that don't offer online access.
 
Again, the reason you see companies signing on to allow this, including big banks, etc.., is to increase the rate of closed loans and financial products.

If a customer has to go around and collect some documentation, etc.. to submit, the company trying to close the loan often loses the customer at this point when they decide it isn't worth the effort to get everything needed. So walah, a product that a customer can complete nearly entirely online, and through a few keystrokes, they can close the deal.

Of course, you've willingly given permission to scrape your data along the way.. all in the name of convenience.

So, would I ever do this? Not likely. Does it mean it is a scam? Also not likely - just the new modern way of convenience at the expense of sharing your data.

In the future if it becomes the norm, then I'll have a single checking account at a bank not tied to any other financial account of mine.
 
You guys really need to take some security training. No legitimate entity ever asks you for your username and password on *any* application *ever*. That is the whole idea behind having username and password. You never share that with anybody if the account is supposed to mean something. I won't even give my junk email credential to anyone. Giving your financial institution login credential to a 3rd party? You got to be kidding me.

Where the heck are the usual guys whose job is online security. Why have they kept quiet on this topic? I expect a sever lecture from couple of our residents experts soon.
 
You might as well tell me that payday loan people want it or "pay it here buy it here" used car lot wants it.
I don't go anywhere near them. Why would you do business with MoneyGram?
 
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Isn't your wife a lawyer? I feel like she shouldn't be okay with this.

They should never need your log-in information. They should be able to access everything on the back end of their system. If they truly need your ID and password, I'd question the security of their system and the competence of the people running it.
 
I'm surprised such a thing is even debated. The problem, the way I see it, is not so much with banks or questionable organizations asking for login credentials, but with people actually contemplating giving up this information.

The answer should be quite obvious, NO you can't have my login credentials.

But it looks like in the name of convenience people are willing to give up anything.
Problem is that once something bad happens to them because of that, they will most likely be the first ones to cry that the government should've done something about it.
 
Krisz nailed it.

For the customer, it's all about convenience. For the financial institutions, it's all about closing deals.

People willingly give permission for this.

I'm not one of them, but people obviously do...
 
Originally Posted by Vikas
You might as well tell me that payday loan people want it or "pay it here buy it here" used car lot wants it.
I don't go anywhere near them. Why would you do business with MoneyGram?

All completely irrelevant. These places exist for a reason. Doesn't matter that you don't use them....
 
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