Online payday loan companies require loan applicants to complete an online application form. Based on the information disclosed in the application form, the lender will determine whether the applicant is qualified for a payday loan or not. Most lenders collect information about potential clients from four sources:

1. The information provided by the application on the online form, such as years or months of employment and the monthly wage
2. The data regarding the clients transactions with the lender such as the amounts previously loaned and payments made
3. The record of the clients transactions with other companies or lenders, such as whether the client has applied for other payday loans or not
4. The report from a consumer agency, but this report is not about the clients credit history.

Some people, however, are dubious about the privacy and confidentiality of submitting their information online. This is because there are unscrupulous hackers who steal information for their own selfish purposes.

To prevent any violation of privacy, the online lenders have installed comprehensive and tight security measures. Such measures are meant to keep the confidentiality and integrity of the information provided by an applicant. One of these security measures is called the 128-bit SSL encryption technology. SSL stands for Secure Socket Layer. The SSL ensures that any data transmitted from one computer to another cannot be viewed publicly by anyone.

Another security measure is, of course, the clients username and password. With such, no other person will have access to the clients personal account. This means that no one else can use and exploit the personal account. But with this security measure, the client must also do his part. That is, he must not divulge such information to anyone or make a public computer remember his username and password.

For the part of the lenders, they usually do not pass on information about you to other entities or people, except when the law requires them to do so. This is when lenders report their financial status to authorized government agencies. The lenders will certainly not show that Mr. X borrowed more money than Mr. Y.

The lenders also installed electronic safeguards to prevent other online companies from obtaining the clients contact information, and to hinder such companies from sending you proposals and advertisements about their products and services.

And lastly, when a person no longer utilizes the loan services of the lender, the information about this former customer will remain confidential, unless again, when the lender is required by law to disclose such information.