Loan application asking/requiring you to give internet banking login/passwords to third parties - experiences?

Oh! That feeling of being a trust worthy customer?

Is there any benefit to society in doing so?
Will those living day to day receive greater consideration and a more honest deal?
Will those not spending to the maximum of their borrowing capacity be prime targets for increased marketing? Marketing that uses access to determine likely current needs, special interests and weaknesses (aka opportunities) deduced from the accumulated data.

Sometimes “complies with relevant legislation” is true because there is no relevant legislation to comply with. :wink:

Is there legislation to say one cannot share a login and password for your banking with another person or business?

Is there any point (noted the observation commences with a big “if”) in speculating the Fox in the back yard is not there to take the chickens. Or for city dwellers the possum on the back fence to eat your camellias.

It’s worth considering when one permits a financial or other business to obtain your personal data under the CDR, there are protections concerning the intended purpose and how it can be used. Illion as stated is working outside of the latest legislation. Surprising but not so considering priors for such a significant finance based business when others are already onboard.

That is their take on their systems and their business. Will the banks (et al) have the same response so a consumer can be comfortable everyone is telling them the same thing?

Not suggesting illion is misleading but the courts are littered with cases of misrepresentation in various ways, as are some ACCC cases.

It was not more than a decade or two ago bank’s graciously offered their customers pass through logins so if one logged into MyBIg4Bank they could simply click to see their accounts on MyOtherBig4Bank and MySmallerBank. Was the data syphoned during the passthrough? Who knows for sure except the techies and mangers at MyBig4Bank. Any security issues? Left to the imagination.

It has been many years since I have seen such a gracious offer (or implementation) to make my life simpler. There seems to be some passing similarity between that ‘feature’ offered in days gone and using Bankstatements.

As I mentioned, I discussed the access with all of my banks and they all expressly forbade providing my internet banking credentials to any third party.

As far as I can tell, there is no specific law against logging into a person’s internet banking using their credentials with their permission as long as you don’t steal their money.

There are of course laws against misleading/deceptive conduct and I note that the terms they use are very carefully crafted to avoid saying exactly what they are doing without actually being lies. I’m not party to what Illion have told their customers (the lenders) but based on what the lenders told me it sure seems like they have been misled by Illion about what they are actually doing.

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I am attempting to close my jaw after it hit the floor upon reading your experience with??
It is a mantra from financial institutions that under no circumstances, are you to provide the information you have been asked for.

As an ex banker/lender it is a requirement to look through the transactions listed on the bank statements related to the clients loan application. We are looking for a number of things in this process. However, there is absolutely NO need for the provision of password access or anything else that is intended to keep your accounts safe and protected from potential theft/fraudulent activity.

I cannot find any legitimate reason/purpose for this request to be made and if it is a requirement of your loan being approved, then I would be giving my business to another lender.

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Hard Pass from me. I would never, ever give my banking details to anyone.

Interestingly enough I recently did some survey for part of Dept of Treasury that had a mockup of an app that did the one-time password to your bank to get info for a quick decision on a loan (it would have access for 24 hours or so). The app design seemed quite good, but my feedback was as my first sentence.

No. Never going to use it, do not trust any third party with those details even if it for a one off transaction. Too risky.

Welcome @Lynnee to the Community.

Now as someone who has been in the business of loan approval, and needed to check applicant details, how was that done?

Copies of statements provided? Or inhouse applications? Or oursource to third-party organizations like Illium who do provide a total service of credit history as well as current transaction details as the CDR requires banks to provide on request to approved requestors.