I have just come across an online loan company that is using applicants online banking as part of the approval process. Within the application, one is directed to the bank's website and asked to enter login name and password.
The loan company reviews the deposits and transaction history.
Has anyone else seen this before with online loan apps?
Thanks

This absolutely sounds like a scam - at the least very shady. Any legit loan company would check credit but would NOT look at the customer's deposit accounts.

Well, actually this specific one is being marketed by Jackson Hewitt.
www.billfloat.com/jh
Jackson Hewitt's Facebook FAQ's has far more details if you google SmartLine Line of Credit Jackson Hewitt

Maybe this is not the place for a fraud discussion. Is anyone aware of another forum for fraud analysts?
Thanks!

This is as good a place as any, but either no one really has much to add or no one has noticed. There was a recent discussion regarding a bank that was setting up an on-line banking product that did something similar. Personally, I think it is a real dangerous practice for these companies. Unless they have lockdown type security on this information, I think it opens them to substantial liability.

I appreciate the response. We treat online banking passwords very seriously as most probably do. This set off alarms with us and was hoping others may have experienced it. There is so much possible risk with a breach or malware on Jackson Hewitt's computers. Obviously, that could lead to B2B transfers or the appearance of secure communications with the bank.
Also, first time I have seen loans decisioned in this manner. Hope this helps someone.