Before giving a lender, debt collector or finance company your personal information or money, it is worth taking a few minutes to verify that the company is legitimate and properly licensed. Different types of financial companies are regulated by different bodies in the US, so the right place to check depends on what kind of company you are dealing with.
Use the FDIC BankFind Suite at banks.data.fdic.gov. Search by institution name. Look for active status and the FDIC certificate number. The FDIC insures deposits up to $250,000 per depositor, per institution, per ownership category. If a bank is not found in BankFind, it is not FDIC-insured. This is a quick but important check before opening any new account. The tool is free to use and requires no account or registration.
Use the NCUA Credit Union Locator at mycreditunion.gov. Federally insured credit unions carry NCUA share insurance up to $250,000 per member per ownership category. Some credit unions are state-chartered and carry private insurance instead of federal insurance. In those cases, check with the relevant state regulator to understand the coverage available. The NCUA locator will show whether a credit union carries federal share insurance.
Use NMLS Consumer Access at nmlsconsumeraccess.org. Most mortgage lenders, loan officers and money service businesses must be registered in NMLS. You can search by company name, individual name or NMLS ID number. Results show licence status, the states where the company or individual holds licences, and any regulatory or enforcement actions. Not all types of lenders are required to register with NMLS. Non-mortgage consumer lenders may only be licensed at the state level. If a company is not found, contact your state regulator rather than assuming it is unlicensed.
Search the CFPB complaint database at consumerfinance.gov to see whether complaints have been filed against the company. Check your state attorney general's office for a list of licensed collection agencies. Under the Fair Debt Collection Practices Act (FDCPA), debt collectors must identify themselves and the debt in writing upon your request. You have the right to ask for written verification of any debt before paying it. Do not provide payment details to anyone who cannot verify their identity and the debt in writing.
Many apps that look like banks are not banks. They partner with FDIC-insured banks to hold customer deposits. Find the banking partner named in the app's terms of service or help pages, then search for that partner using FDIC BankFind. The FDIC insures deposits at the partner bank, not the app itself. This is called "pass-through" insurance, and it depends on specific conditions being met, including that the app properly segregates customer funds and maintains accurate records. Understanding who the banking partner is before depositing significant funds is an important step.
If a company cannot be found in the FDIC, NCUA or NMLS databases, that does not necessarily mean it is operating illegally. Some lenders are only licensed at the state level and do not appear in federal databases. However, not appearing is a reason to ask more questions. Contact your state financial regulator (find yours at csbs.org) or the CFPB. If you suspect a company is operating without a licence, report it to your state attorney general.
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This page is general educational information only. It is not financial, legal, tax, credit or debt advice. Rules and regulations can change. Always verify current information with official sources before taking any action.