topic Re: Inquiry for opening a checking account? in Understanding FICO® Scoring

Inquiry for opening a checking account?

Anonymous — Mon, 15 Oct 2007 23:02:33 GMT

This wonderful Patriot Act is giving the banks the license to do a hard INQ on everything, including the simple act of opening a bank account. Why? What is the purpose? I actually was turned down by a bank when I tried to open a bank and had a bk on my record.

Can anyone share their thoughts or experiences on this?

Re: Inquiry for opening a checking account?

Anonymous — Tue, 16 Oct 2007 00:10:31 GMT

The banks check your credit report 1) definitely because the Patriot Act states they can and 2) because it is an indicator as to whether or not you will overdraw your account. To a bank, a lower Fico indicates poor financial management and it is just another way to judge whether or not you will go in the negative and leave them holding the bag.

I know my bank does not do an inq. for opening a savings account, I can not speak for other banks but you may want to try that route for awhile, get a relationship established, then go from there.

Also you can try looking into a BK friendly credit union in your area. Posters on here always have good things to say about them.

Re: Inquiry for opening a checking account?

fused — Tue, 16 Oct 2007 01:22:09 GMT

Boscoe wrote:

This wonderful Patriot Act is giving the banks the license to do a hard INQ on everything, including the simple act of opening a bank account. Why? What is the purpose? I actually was turned down by a bank when I tried to open a bank and had a bk on my record.

Can anyone share their thoughts or experiences on this?

With this checking account were you also trying for overdraft protection? If no, there is no way in heck the bank had PP. Opening up a checking w/o overdraft protection is NOT an application for new credit. If anything you're loaning money to bank, maybe you should hard (inq) the bank's a$$ and determine their creditworthiness. Banks who do this really piss me off.

Any bank saying the PA requires them to hard you to prove your identity is also full of it. A DL or passport is suffice.

Re: Inquiry for opening a checking account?

Anonymous — Tue, 16 Oct 2007 01:47:23 GMT

My bank did a hard inq last year for a checking account. I disputed it. Gone. I ask now before opening accounts. Some banks do hard inqs some do soft. 1 bank 2 weeks ago said they would do a 3 CRA hard pull for savings accounts. I laughed walking out. Didn't even say good bye. If you could only see my face. lol.

Message Edited by ilovepizza on 10-15-2007 06:47 PM

Re: Inquiry for opening a checking account?

smallfry — Tue, 16 Oct 2007 02:43:57 GMT

My local BOA pulls a hard for a checking account w/o overdraft protection. I just went in to check it out I wouldn't think of opening an account under those circumstances.

Re: Inquiry for opening a checking account?

Anonymous — Tue, 16 Oct 2007 03:28:22 GMT

Check the fine print, I know both BofA and Citibank hit hard to open up a checking account. If it's in the fine print, which it is for at least those two, then they have PP.

Re: Inquiry for opening a checking account?

fused — Tue, 16 Oct 2007 18:26:05 GMT

db23 wrote:
Check the fine print, I know both BofA and Citibank hit hard to open up a checking account. If it's in the fine print, which it is for at least those two, then they have PP.

Fine print or not this can be challenged, disputed or what have you. Opening a savings or checking account (w/o overdraft protection) is NOT an application for credit. The FTC section 604 clearly states under what circumstances your credit can be reviewed. The confusing part is what does reviewed mean, a soft or a hard.

If my bank hit me with a hard inquiry simply by opening an account and not applying for credit, I would dispute with the CRAs that the inq is not mine...I didn't apply for any new credit. Just because the bank says they're going to hard you doesn't mean they have the legal right to.

Re: Inquiry for opening a checking account?

Anonymous — Tue, 16 Oct 2007 18:43:18 GMT

Imagine how much business banks would loose if they advertised a sign on the new accounts desk. WE PULL HARD INQS FOR NEW SAVING AND CHECKING ACCOUNTS. Wonder how many new accounts they would open?

Re: Inquiry for opening a checking account?

MidnightVoice — Tue, 16 Oct 2007 18:46:00 GMT

ilovepizza wrote:
Imagine how much business banks would loose if they advertised a sign on the new accounts desk. WE PULL HARD INQS FOR NEW SAVING AND CHECKING ACCOUNTS. Wonder how many new accounts they would open?

I am willing to bet that about 90% of their customers would not know the difference between a hard and soft inq.

Re: Inquiry for opening a checking account?

fused — Tue, 16 Oct 2007 19:54:20 GMT

MidnightVoice wrote:

ilovepizza wrote:
Imagine how much business banks would loose if they advertised a sign on the new accounts desk. WE PULL HARD INQS FOR NEW SAVING AND CHECKING ACCOUNTS. Wonder how many new accounts they would open?

I am willing to bet that about 90% of their customers would not know the difference between a hard and soft inq.

Very true!

Re: Inquiry for opening a checking account?

Anonymous — Tue, 16 Oct 2007 21:29:11 GMT

i switched accounts from one state to another (same bank) because they kept losing my deposits. hard inquiry and i've been with them for years. i am presently trying to it to a soft. no luck yet but lots of phone calls.

Re: Inquiry for opening a checking account?

Anonymous — Tue, 16 Oct 2007 21:32:52 GMT

how did you dispute? i have been trying for months.

Re: Inquiry for opening a checking account?

Anonymous — Tue, 16 Oct 2007 22:40:18 GMT

@fused wrote:

@Anonymous wrote:
Check the fine print, I know both BofA and Citibank hit hard to open up a checking account. If it's in the fine print, which it is for at least those two, then they have PP.

Fine print or not this can be challenged, disputed or what have you. Opening a savings or checking account (w/o overdraft protection) is NOT an application for credit. The FTC section 604 clearly states under what circumstances your credit can be reviewed. The confusing part is what does reviewed mean, a soft or a hard.

If my bank hit me with a hard inquiry simply by opening an account and not applying for credit, I would dispute with the CRAs that the inq is not mine...I didn't apply for any new credit. Just because the bank says they're going to hard you doesn't mean they have the legal right to.

If you are agreeing to a credit check in a contract to open an account with a bank then they have every right to check your credit. If this means a hard pull then so be it. FWIW BofA hit me twice on TU to open up a single checking account, but no big deal so long as it's only TU I really don't care.

With your way of thinking then I'd say that a CU has no right pulling a hard just to become a member, which MANY if not MOST do. Also then a cellular provider would have no right either, being that any cellular provider I've ever had has always billed up front, so they aren't providing "credit", same goes for regular telcos and cable/sat companies.

Whether you want to dispute them is up to you, but if you want the service and agree to a credit check then they technically have PP.

Re: Inquiry for opening a checking account?

fused — Wed, 17 Oct 2007 01:25:41 GMT

Why banks get away with this who knows but I simply do not agree with you. PP is more than just signing something. This is very misleading and IMHO breaking laws. Most people don't know the laws and don't care, I do. According to FTC there is nothing that even suggests a bank can review one's credit file just because they feel like it. In order for the bank to have true PP there must be an application for credit. Period!

Re: Inquiry for opening a checking account?

Anonymous — Wed, 17 Oct 2007 02:11:46 GMT

fused wrote:
Why banks get away with this who knows but I simply do not agree with you. PP is more than just signing something. This is very misleading and IMHO breaking laws. Most people don't know the laws and don't care, I do. According to FTC there is nothing that even suggests a bank can review one's credit file just because they feel like it. In order for the bank to have true PP there must be an application for credit. Period!

I have not read the Patriot Act, but IMveryHO, I do not think PP matters with the Patriot Act and banks. Obviously they are not breaking any laws or this practice would have been stopped a long time ago.

Why is it PP for an insurance company to pull your report before they give you a quote? It is not, but it is an indicator as to how risky a customer you are.

It is not fair, but I am sure we will all have to get used to it unless we elect better people into office next year... or else they will be pulling your credit report before you can cross the street.

Re: Inquiry for opening a checking account?

Anonymous — Wed, 17 Oct 2007 02:50:13 GMT

@Anonymous wrote:
Obviously they are not breaking any laws or this practice would have been stopped a long time ago.

Actually the practice is relatively new. So I guess more or less untested.

Don't misunderstand me Fused, I agree that they shouldn't be pulling my CR for anything that has nothing to do with credit. But we're talking you essentially giving them PP by agreeing to their terms when applying for a checking account or whatever...

Re: Inquiry for opening a checking account?

Anonymous — Thu, 18 Oct 2007 00:47:10 GMT

how did you dispute it pizza? I have called every dept. I can think of, filed a complaint and they still tell me it's automatic.Excuseee meeeeeeee. they are the ones who kept losing my deposits.

Thanks

Re: Inquiry for opening a checking account?

Anonymous — Tue, 23 Oct 2007 14:42:23 GMT

update--i have finally gotten someone at the top to talk to me. they tell me there's a little sign on the desk at the bank that informs you of the credit pull. since i was already a customer and at their suggestion i switched accounts from state to state i was not looking for little signs and assumed bank would tell all i needed to know. even the banks don't trust their old customers. make sure you look all around your bank for little signs if you need info. it is not made available by live person. can you tell i am peepeed off?

Re: Inquiry for opening a checking account?

Anonymous — Tue, 23 Oct 2007 19:37:21 GMT

casinoannie97 wrote:

can you tell i am peepeed off?

HAHA--I'm sorry, peepeed? Hahah....

I dont mean to make light of your situation, that is just funny.

Re: Inquiry for opening a checking account?

Anonymous — Tue, 20 Nov 2007 15:29:21 GMT

i got a call from my bank today and they are removing the inquiry. I had to write them a letter and send copy of credit report showing inquiry.

Needless to say i am pleased and hope this helps anyone with same problem.