Short answer: a loan matching service can be a safe way to reach several lenders with one form, but only if you know who receives your information and you check the lender before you sign. The Consumer Financial Protection Bureau (CFPB) warns that these sites pass your application, including your Social Security and bank account numbers, to a network of lenders, and that other companies may still contact you afterwards (CFPB).
What a loan matching service does
A loan matching service, also called a lead generator, is not a lender. You fill out one form; the service passes your request to one or more lenders and is paid by them. The CFPB notes that it can be hard to tell a lead generator from a real lender, and that these sites often use phrases such as "matching you with lenders" or "connecting you with a network of participating lenders" (CFPB). This site is one of them: see the disclosure at the end of this page.
What can go wrong with your data
Federal regulators have acted against companies in this business when applications went to the wrong places:
- In 2015 the CFPB alleged that a lead aggregator bought and sold payday and installment loan applications without properly vetting buyers and sellers, and sent consumers to lenders that ignored state usury laws (CFPB, 2015).
- In 2022 the FTC settled with ITMedia Solutions, which ran loan application websites and, the FTC alleged, sold consumers' information to marketing companies and others without regard for how it would be used; the company agreed to a $1.5 million civil penalty (FTC).
8 checks before you submit a loan request form
| Check | What a good sign looks like | Where to verify |
|---|---|---|
| 1. Is it a lender or a matching service? | The site says so in plain words near the form and in the footer. | The site's own disclosures |
| 2. Who receives your information? | The privacy policy names the kinds of companies that get your data and how to opt out. | Privacy policy; CFPB checklist |
| 3. Any fee before you get the loan? | None. Paying up front to "unlock" a loan is the classic scam. | FTC advance-fee guide |
| 4. Is the lender licensed in your state? | The lender that makes the offer is licensed where you live. | NMLS Consumer Access or your state banking regulator |
| 5. Do you see the APR before you sign? | The lender shows the APR, which includes interest and certain fees, before you sign. | CFPB on APR |
| 6. Is contact information easy to find? | A working phone number, email and address. | CFPB checklist |
| 7. Any "guaranteed approval" promise? | No. Lenders decide; no one can promise approval. | FTC |
| 8. What do other people report? | Search the company name with "complaint". | CFPB complaint portal |
If something feels wrong
Stop, do not pay anything, and do not share more information. You can report a company to the FTC at ReportFraud.ftc.gov and file a complaint about a lender or loan service with the CFPB. Our guide to advance-fee loan scams lists the warning signs in detail.
How this applies to Modern Lending Solutions
Run the same checks on us. Our Privacy Policy and Marketing Practices pages explain how your request is used, filling out our form is free, and you are under no obligation to accept any offer. If a lender makes you an offer, read its APR and terms before you sign.
Start your loan request How our service works
Disclosure: Modern Lending Solutions is not a lender, loan broker or agent for any lender or loan broker, and does not make credit decisions. Any compensation we receive is paid by participating lenders, only for advertising services. This guide is general information, not financial or legal advice.
Sources
- CFPB: What should I consider if I'm thinking about getting a payday loan online?
- CFPB: CFPB takes action against lead aggregators for online trafficking of personal information (December 17, 2015)
- FTC: Federal Trade Commission v. ITMedia Solutions LLC (settled January 2022)
- FTC: What To Know About Advance-Fee Loans
- NMLS Consumer Access (state license lookup)
- CFPB: What is the difference between a loan interest rate and the APR?
- CFPB: Submit a complaint
- FTC: ReportFraud.ftc.gov