URGENT NOTICE To Loan Stop Customers
February 20, 2013
RE: The Inappropriate Practice of Using Your Private Online Banking ID’s and Passwords
It has come to our attention that small loan lenders, like Loan Stop, are now using a new practice, which we feel is unethical and inappropriate. This notice is to educate you on this practice and to inform you of our policy against this, in our company. Loan Stop does NOT intend to use this practice now, or in the future.
BEWARE – Companies Are Using Your Private Online Banking ID’s and Passwords
The new practice is as follows:
During the application process (after you have agreed to the fine print terms and conditions), you are asked to provide your banking User ID and Password. This information is retained and stored so that lenders can then access your personal banking information at any time. The information is then used to monitor your account for collection purposes. For example, if you had a returned payment and you owed $200 to a lender. The lender would have access to your account balance and would be able to remove funds (ACH) from your checking account, when there were funds available. In other words, lenders will have the same access to your account, as you do and will know when to remove funds.
Loan Stop does not agree with the use of this practice and we believe in your privacy. We feel this crosses the privacy boundaries and is damaging to our customers.
It is our understanding that many online lenders are operating in this fashion, but that traditional companies with good reputations are avoiding it. Please know that we refuse operate in this manner now or in the future. Our goal is to educate you on how to protect yourself.
HOW TO PROTECT YOURSELF:
- Never provide your bank User ID and Password during the application process or during a typical transaction.
- If you have agreed to this in the past, change your bank Password immediately.
- If you are not sure and you have had an online loan, it is safest to proactively change your password for your protection.
Loan Stop strongly believes in providing an honest, valuable service to our customers during a time when you need us. Thank you for your ongoing business.
Eric Graning, President/CEO