Bank doing hard pulls

[Junejer]

I have recounted this timeline ad-nauseum on these forums, so forgive me if you've read it before.

When I first got into the banking business, there were hard pulls for loan products only. Then, around a decade or so ago, it became en vogue to do hard pulls for new customers asking for checking accounts. Then, it became part of the operating system, whereby the banker couldn't even override it. So, current customers got hit with it as well. Then, they got savings accounts in on the act.

Since the Patriot Act has been introduced, banks have taken liberties, even to the point of stating that it is by law that they must "know who their customer is", therefore, we are hard pulling everyone. Unfortunately, that's what they are standing behind--legally or illegally. And, until enough challenges to that action takes place, they are going to continue to do so.

I don't think that a bank should have PP on things like opening accounts without credit attached to them and such, but I don't see those practices changing anytime soon.

[Anonymous]

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@MidnightVoice wrote:

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@Anonymous wrote:

How so? please enlighten me?

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This person is asking the bank to loan them money.  Is that not "an application for new credit"?

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Nope, it's not - it's a normal transaction part of the checking account contract. It's illegal and should not be condoned.

[Anonymous]

Opening an account is ground for a Hard pull, as long as the checking account offers some degree of credit - a line of credit or overdraft limit.

The Patriot Act line is 100% BS, just ask them to show you the rules and regulations where this is prescribed.

[MidnightVoice]

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demed wrote:

Nope, it's not - it's a normal transaction part of the checking account contract. It's illegal and should not be condoned.

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My bank does not consider it "normal" for me to spend other people's money 

[Anonymous]

You guys are full of knowledge and opinions!

I'll tell her to go talk to the bank about it. She did say there wasn't a separate overdraft account, but I do understand the bank doing soft pulls. My opinion would be that even if you go overdrawn, you are not actually requesting credit, but I'm not a banker.

Thanks!

[Junejer]

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demed wrote:

Opening an account is ground for a Hard pull, as long as the checking account offers some degree of credit - a line of credit or overdraft limit.

The Patriot Act line is 100% BS, just ask them to show you the rules and regulations where this is prescribed.

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Oh, I agree, as you will find in my other posts about this subject. Banks are hiding behind it, as a way to hard pull. Before the PA, a few banks were hard pulling, now most of them are doing it and are using the PA to justify it. If they would be challenged on it (in court) enough times, then they would change those habits, IMO.

[Anonymous]

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@MidnightVoice wrote:

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@Anonymous wrote:

Nope, it's not - it's a normal transaction part of the checking account contract. It's illegal and should not be condoned.

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My bank does not consider it "normal" for me to spend other people's money 

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When I open my checking accounts I agree on an overdraft protection, and\or an overdraft limit and\or a line of credit. 

99.999% of accounts have one flavor or another of these - I feel sorry for you if your bank doesn't grant you one. LOL. 

[MidnightVoice]

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@Anonymous wrote:

When I open my checking accounts I agree on an overdraft protection, and\or an overdraft limit and\or a line of credit. 

99.999% of accounts have one flavor or another of these - I feel sorry for you if your bank doesn't grant you one. LOL. 

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Ok, I will be nice one last time and then give up.

To quote the OP  " She doesn't have a cc tied to this account, and there isn't any sort of overdraft protection plan either. They either pay her transactions and impose fees, or just impose the fees without paying. "

Does that solve your problem?  And whilst I don't mind you laughing at me, I think you should grovel and apologize to the OP for such insults 

[Anonymous]

Midnight, no reason to take it personally - I didn't mean to be rude - i'm writing few posts in hurry and didn't pay enough attention to niceties. in any case, no cc and no overdraft don't mean a check is a request for credit.

what her bank did is wrong and remains wrong.

if you want an apology for the sarcastic tone, i apologize - my bad.

Message Edited by demed on 11-25-2008 07:14 PM

[Junejer]

You guys have "kissed and made up", so to speak, so I will jump back in here and play it from the bank's point of view, which is this: an overdraft IS an unsecured/unauthorized loan. If they pay your OD as a courtesy, in effect, they are extending a loan to you, because they have to believe that you are going to bring the account back to positive status (pay the loan).

That said, I still don't think that there is any way that, IF CHALLENGED, banks could win a PP lawsuit on these types of things.