Written by: Eric Bank
Edited by: Lillian Guevara-Castro
Key Takeaways
- Year-over-year personal loan satisfaction did not change as economic pressures and loan management concerns took their toll on borrowers.
- Consumers across the credit spectrum increasingly experience financial vulnerability, which is leading to compromised trust and strained lender relationships.
- Data privacy and electronic communication are high-priority issues, with almost a fifth of borrowers being subject to some kind of fraud.
Despite concerted efforts by lenders to enhance borrower experience, total personal loan satisfaction hasn’t changed much since last year, according to the 2025 J.D. Power U.S. Consumer Lending Satisfaction Study.
That stagnation is unexpected considering all the focus on borrower support programs and digital transformation. But further examination of the data reveals a disturbing trend lurking behind the numbers.
Borrowers today are more financially fragile than they were 12 months earlier due to rising living costs and servicing challenges.
Economic headwinds in the form of inflation and increasing living expenses coincide with loan servicing challenges such as payment misunderstandings and surprise fees. Consumers consequently feel that lenders aren’t meeting their needs.
That attitude is confirmed by trust scores. Satisfaction with personal loans is 704 on a 1,000-point scale — an increase of only two points from last year.
American Express ranked highest among personal loan lenders in overall customer satisfaction for a third consecutive year, ahead of Citi and Discover. The study includes 5,802 personal loan customers and surveys of seven critical dimensions that include trust, ease of doing business, and digital engagement.
Adding to the burden is an increase in data privacy issues. Fraud and the perception that there is lax communication regarding account security have generated dissatisfaction among borrowers, who demand strong digital protections and timely notices.
Financial Vulnerability on the Rise
The study indicates that 47% of consumers now qualify as financially vulnerable, up from 45% in the previous year. That increase is as much a testament to economic headwinds as it is to uneven lender response.
The spread in satisfaction scores for financially healthy and vulnerable borrowers is an indication that current servicing models may be missing their target.
Vulnerable borrowers were more likely to report concerns about uncertain payment terms, inadequate flexibility in repayments, and restricted customer service access. These issues seem to be holding up progress in borrower engagement and satisfaction within the industry.
28% of dissatisfied borrowers cited unforeseen charges as a major complaint.
The biggest complaint was about unforeseen charges, mentioned by 28% of dissatisfied borrowers. When fee details were disclosed after approval, 43% of borrowers reported being surprised by unexpected charges.
The highest (753) and lowest (701) customer satisfaction scores were recorded when such fees were disclosed at the outset and, conversely, were disclosed afterward, respectively.
Financially vulnerable borrowers, who constitute 47% of the market today, showed lower levels of satisfaction, particularly in areas of transparency, trust, and digital engagement. These issues affect borrowers most at risk of disengaging — a group whose loyalty may prove critical to lender stability.
Data Security and Digital Expectations
Another vulnerability was security. Seventeen percent of borrowers sampled reported instances of fraud or data breach. Although it is never necessarily the lender’s fault in all instances, perception causes harm to the relationship regardless.
Digital communications were also in the spotlight. Borrowers who received proactive notifications — including billing reminders, fraud alerts, or custom tips — reported satisfaction scores almost 150 points above those who didn’t receive them, according to J.D. Power.
That suggests that the possible path to better borrower satisfaction is through more intelligent, more focused digital engagement.
Digital-native borrowers preferred mobile-first assistance, app-based payments, and built-in personal finance tools. Lenders who did not meet those expectations saw significant drops in satisfaction, even among borrowers who did not have account troubles.
What It Means for Lenders
Flat customer satisfaction ratings during a period of high-tech investment imply that lenders aren’t addressing the emotional and pragmatic targets consumers hold dearest.
Personalization, trust, and transparency now form the core of the borrower experience — and those lenders that fail to evolve may fall behind, particularly among young and financially precarious consumers.
“When we see that customer satisfaction with these products is stagnating at a time when the financial health of the average customer is declining sharply, it raises questions about whether or not consumer loans are really hitting the mark for what customers need right now,” said Bruce Gehrke, a J.D. Power senior director.
For now, the industry is stuck in neutral, and the price of staying that way may be quantified in terms of churn, charge-offs, and lasting reputational harm.
