Consumer complaint received 2025-11-26 00:00:00
Product: Checking or savings account — Savings account
Issue: Opening an account — Confusing or missing disclosures
Company: LIVE OAK BANCSHARES, INC.
State: CO

Complaint narrative:
I am very concerned that this bank is collecting information without properly disclosing its use and therefore violating standard banking procedures as well as individuals ' privacy. This is the first bank I have ever dealt with that demands copies of statements from the bank that is funding the account. Not only has no other bank ever asked this, but they also want a copy of a driver 's license, utility bill, and actual social security card. In light of the cyber attacks that are occurring these days, providing all this info to a questionable entity is alarming. Even more concerning is the fact that providing a bank with your purchase history and transactions ( what charities you donate to, what stores you shop at ) from another institution sounds like a lot of data that this bank is trying to collect from is customers. It now makes sense why this bank is paying people {$200.00} to give them {$20000.00} - the data they demand to have from you before you can get the {$200.00} is worth much more than {$200.00} when they try and sell it to others! This bank seems questionable at best and quite deceptive at worst. While I have nothing to hide, I do not see any legitimate reason other than an invasion of privacy for a bank to demand copies of your transactions that you have at another bank. The verification that they receive, like every other bank I have dealt with, is that you give them the microdeposit amounts that they sent and this verifies your account. Additionally, my name being on the external account, my social, XXXX, are all connected to the other account. Having them know that I write checks to the humane society given them nothing more than data they can use to sell to third parties to have pet stores spam me. I believe this is a clever, but legally questionable effort to collect data on people. Additionally, there is nothing in this email that states they will protect the information they are collecting or how they will use it. I hope that someone will look into this bank and it's questionable ways on how it is buying people 's data without telling people what they will do with this data. This is what they sent : XXXX XXXX, We are currently reviewing the application and will need further documentation. 

For the application we are looking to verify you as an individual and will need a XXXX copy of an updated drivers license, your personal social security card, and a copy of a recent utility bill that lists your current physical home address. We will need a recent bank statement showing proof of the external bank account you are attempting to link. 

You may use the secure link below to upload the attachment for us to review. Once received, we will be able to move forward in processing the application. 

XXXX XXXX XXXXXXXX If you have further questions about your account, please contact the Customer Success XXXX XXXX XXXX, XXXXXXXX XXXX XXXX XXXX XXXX XXXXXXXX, Monday through Friday. 



Thank you for banking with XXXX XXXXXXXX XXXX XXXX XXXX. 

XXXX XXXX XXXX. XXXX

Company response to consumer: Closed with explanation