diff --git a/include/xrpl/ledger/View.h b/include/xrpl/ledger/View.h
index 767622596b1..398209ab710 100644
--- a/include/xrpl/ledger/View.h
+++ b/include/xrpl/ledger/View.h
@@ -655,7 +655,7 @@ createPseudoAccount(
     uint256 const& pseudoOwnerKey,
     SField const& ownerField);
 
-// Returns true iff sleAcct is a pseudo-account or specific
+// Returns true if and only if sleAcct is a pseudo-account or specific
 // pseudo-accounts in pseudoFieldFilter.
 //
 // Returns false if sleAcct is
diff --git a/src/test/app/LoanBroker_test.cpp b/src/test/app/LoanBroker_test.cpp
index ef4804f217c..e3ff4dad855 100644
--- a/src/test/app/LoanBroker_test.cpp
+++ b/src/test/app/LoanBroker_test.cpp
@@ -1024,6 +1024,12 @@ class LoanBroker_test : public beast::unit_test::suite
                 destination(dest),
                 ter(tecFROZEN),
                 THISLINE);
+
+            // preclaim: tecPSEUDO_ACCOUNT
+            env(coverWithdraw(alice, brokerKeylet.key, asset(10)),
+                destination(vaultInfo.pseudoAccount),
+                ter(tecPSEUDO_ACCOUNT),
+                THISLINE);
         }
 
         if (brokerTest == CoverClawback)
diff --git a/src/xrpld/app/tx/detail/LoanBrokerCoverWithdraw.cpp b/src/xrpld/app/tx/detail/LoanBrokerCoverWithdraw.cpp
index 4c0b3e9af56..830f9e26c18 100644
--- a/src/xrpld/app/tx/detail/LoanBrokerCoverWithdraw.cpp
+++ b/src/xrpld/app/tx/detail/LoanBrokerCoverWithdraw.cpp
@@ -48,6 +48,11 @@ LoanBrokerCoverWithdraw::preclaim(PreclaimContext const& ctx)
 
     auto const dstAcct = tx[~sfDestination].value_or(account);
 
+    if (isPseudoAccount(ctx.view, dstAcct))
+    {
+        JLOG(ctx.j.warn()) << "Trying to withdraw into a pseudo-account.";
+        return tecPSEUDO_ACCOUNT;
+    }
     auto const sleBroker = ctx.view.read(keylet::loanbroker(brokerID));
     if (!sleBroker)
     {