Credit Inquiry Happened when I was trying to open a Checking Account

[Anonymous]

I did not know that ING Direct checks on Credit History if you want to open an interest bearing account with them. Does other banks do this? It was also a hard inquiry. Any thoughts on this?

[Anonymous]

Yeah I didn't know the banks gave you an hard inquiry just for opening an checking are saving til I found this site. 5 inquiries for 4 checking & 3 savings accounts

[haulingthescoreup]

Lots of debate as to whether they are justified in doing this. One group says you're not applying for credit, so they have no right; the other group points out that you could go on a check-bouncing spree and stick them with a bunch of money.

My own opinion is that checking and savings accounts are not credit, and they have NO PP to do a hard inq on a credit report. They need to be pulling chexsystems or whatever it's called if they want some reassurance.

[marty56]

I think they do this so they can get a good peak at your credit to decide if they want to send you a pre-approval offer for their credit cards.

They funny thing is that if you wite a hot check, the bank that the check was issued from doesn't get stuck with the bill.  I guess the $25 bounced check fee that you have to pay qualifies as them extending you credit.

I opened a Wachovia checking account (no overdraft) and they did a hard pull on TU.  That is why I have $1 in the account with no intent on ever adding a single dime to it again.

[ozgirl]

I am fairly certain this pull was done to meet the customer identification programs requirement that all banks must have in place under the Patriot Act. I wrote/posted something about this a few months back after doing some research on the matter. Knowing this, I brought in my passport when I went to open a new checking account and was spared inquiry. Unfortunately, most bank employees have a very limited understandin of the Patriot Act and do not realize that there are a number of ways to meet the customer identification requirements without doing a credit pull. The credit inquiry is just one of a number of ways to meet the customer identification requirements.

[braznyc]

I looked around before opening an account, and WAMU is the one I chose because they only look at your Chexsystems. BOA will pull your credit report, and they tell you. They claim it's for indentity purposes, and the Patriot Act allows them.

[haulingthescoreup]

And that Patriot Act excuse is a bunch of hogwash! A credit pull doesn't confirm identity or citizenship. Ridiculous!

(Sorry, grousing at lazy banks and car dealers, not members!)

edit: Discover also has a banking wing, Discover Bank, that issues CD's and so forth. Their CSR seemed quite amazed that any bank would do a hard pull to satisfy the Patriot Act. So Discover Bank can be added to WaMu on the good guy list.

Message Edited by haulingthescoreup on 02-03-2008 07:55 AM

[Anonymous]

Soft inquiry from mine to open the business accounts (Sec/Treasurer position - so my job).  This was at 'my' bank though and they still pulled.

[braznyc]

I agree HTSU. I think it's just them being lazy too. If I'm in front of you with all my info passports, state issued ID, proof of address etc then what other proof do you need? It's a loophole that they're allowed to exploit, in my most humble opinion. Yes I want them to do their job, but the CR should be the last resort, and only for online opening of accounts, not when someone is in front of you with all the proof they use to accept.