The Dirty Secret Behind “Loan Comparison” Sites

Some platforms that call themselves 'comparison websites' are actually pay-to-play advertising channels.

While these platforms claim to help you compare loans objectively, regulators from the U.S. to Australia are uncovering a different reality: many of these so-called "comparison" websites are paid to show you what they want you to see. And we are not the only ones speaking up about it:

credit: Head of Lendingpot. (We have no idea why Lendingpot is calling themselves out. But for more of their contradiction or to join the conversation, click here! Interestingly, when we wrote about the conflict of interest if a broker is owned by a lender, they wrote the same, a few months later, despite being owned by IFS Capital & PhilipCapital! )

Credit:This is a publicly made comment that you can find on review websites like Google, Seedly, etc.

At FindTheLoan.com, we call ourselves Singapore’s first loan marketplace for a reason: we don’t just show you a few names and teaser rates. We are a tool that allows you to send your application to multiple lenders directly yourself. That way, you don’t waste time and money chasing biased suggestions.

Comparison websites often show static info or "starting from" rates — but those rates aren't tailored to you because these platforms don't collect your full profile or pass your application to lenders. What you see are just advertisements — and even if the interest rate is accurate, what about the loan amount or tenure?

In fact, regulators in multiple countries have already taken action:

1. U.S. Federal Trade Commission (FTC) vs. LendEDU

"LendEDU told consumers that its financial product rankings were based on objective and unbiased information... but in fact LendEDU sold its rankings to the highest bidder."

— FTC consumer alert

2. Consumer Financial Protection Bureau (CFPB) on Steering Practices

"Operators of digital comparison-shopping tools can violate the prohibition on abusive acts or practices if they distort the shopping experience by steering consumers to certain products or services based on remuneration to the operator."

— CFPB Circular 2024-01

3. Australian Securities and Investments Commission (ASIC) vs. Choosi

ASIC sued Choosi for misrepresenting itself as a broad comparison tool while mostly promoting just one insurer:

"Comparison websites must provide a meaningful comparison service — not simply operate as a sales channel or distribution platform for companies."

— ASIC media release, June 2025

At FindTheLoan.com, we've faced this pressure firsthand. Some lenders offered to invest — but only if we agreed to steer all borrower traffic toward them. We turned them down, choosing instead to spend another year before we managed to raise money from angel investors instead.  We believe a real marketplace isn't just about the tech — it's about values. Staying truly pro-borrower meant rejecting investor terms that would have compromised neutrality.

4. Even governments are warning about biased comparison websites

It’s not just consumers who are starting to question these platforms — regulators are speaking up too.

The Australian Government’s official site MoneySmart advises that many comparison sites are actually commercial businesses that get paid to feature or prioritise lenders, meaning users might not see the full picture.

Conclusion: You can’t compare offers that were never made.

Many so-called comparison sites only show teaser rates that may not apply to you. Think about it: if one lender or bank were cheaper than the others for all borrower profiles, wouldn’t the rest have closed shop? What looks like choice is often just advertising dressed as comparison. And even if the interest rate is accurate, what about the loan amount or tenure? In the US, such companies have also been sued for wasting consumers’ time, as many didn’t even end up getting a loan at all.

Some banks intentionally advertise higher rates as part of a controlled risk appetite strategy. These institutions aren’t trying to compete on price – they’re protecting their loan books by attracting a more stable, less price-sensitive segment of borrowers. By displaying higher advertised rates, they deter risky applicants who are purely rate-shopping, and instead filter in customers who value speed, brand trust, or bundled services. So there isn’t anything inherently wrong. That is why you see them fluctuating from time to time. Did you think a bank suddenly got more competitive the next month? If your risk profile is good, even if Bank A advertised a higher rate, you might actually get a lower rate than what Bank B chose to advertise.

But when websites present these rates or generic approvals as "compared" offers, it can mislead borrowers into a false sense of comparison, as they fail to apply with banks that may actually give them a lower rate despite the higher advertised rate – causing them to pay extra. At FindTheLoan.com, you make an actual application that goes to multiple lenders, and they reply with genuine offers you can act on.

We are pushing for industry regulation to ensure transparent loans and protect consumers. Add your voice to the movement here.  #Transparency #ConsumerProtection #YourVoiceMatters

--

If you enjoyed this article, we’d love for you to share it with others who might find it valuable. Even a quick like or comment here helps trigger the algorithm to reach more people!

Our goal is to bring you insights that Big Finance doesn't want you to know, but they often get overshadowed by Big Finance's content due to the large budget they have. Every share helps amplify our work and reach more readers like you!

Subscribe here for more!
Give us a try — it’s free to get your personalized loan offers today!

Share on: