Does applying for a checking account normally cause an inquiry?

[Anonymous]

MyFico Score Watch notified my the other day that I have a new inquiry from KeyBank.The thing is, I was applying for a checking account, but because I didn't qualify for a particular bonus promotion ($200 bonus) I never submitted the application. I couldn't find a cancellation link, so I simply exited the browser.

I'm 100% certain I didn't submit the application.

I'm not sure what to think of this. I will probably try to dispute it, but disputing isn't as easy as they make it sound.

[RobertEG]

I would first call them.

In order to make inquiry, there must have been a clear "business transaction initiated by the consumer" for which there was also a "legitimate business purpose" for obttaining the consumer's credit report in connection with that transaction.  FCRA 604(a)(3)(F).

They had neither.

Hopefully, they will resolve it informally, and remove the inquiry.

If not, as you speculated, the dispute proccess can be a bear.

You cannot dispute directly with the bank, as disputes pertaining to credit inquiries are exempt from the direct dispute process.

So you would have to dispute via the CRA.

To honor an inquiry, the rules require only that the requiestor provde the CRA with a stated permissible purpose for their inquiry.

The CRAs dont have a process to independently evaluate the legitimacy of a stated permissible pupose, so they rountinely bllow off such disputes.

Best bet, in my opinion, would be to file a formal complaint with the FTC against the CRA for providing your credit report without a consumer initiated business transaction or a legitimate need to access your credti report in connection with any such non-existent transaction.

[Anonymous]

Thanks

These inquiries they show on our reports aren't very detailed. Question... inquiries show up INSTANTLY right? So there is no way this KeyBank* Inquiry I received was from car shopping two months ago; I let the dealer try and beat my pre-approval interest rate.

*the same day I was applying for a checking account / see first post

[Anonymous]

No, it wouldn't be from 2 months ago.  I would probably say it was an auto inquiry also.

[Anonymous]

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@Anonymous wrote:

No, it wouldn't be from 2 months ago.  I would probably say it was an auto inquiry also.

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auto inquiry?

[Anonymous]

Well, I still have not a clue what you mean by auto inquiry. Anyway, I mailed a letter to KeyBank yesterday; hopefully the resolve it internally.

[Anonymous]

You stated you were car shopping 2 months ago.  I said, no, it would not show up now.  And the inquiry would have referenced some type of auto dealer/lender etc.

[RobertEG]

When requesting a consumer credit report, they must provide the CRA with their stated permissible purpose, which must be one of the purposes identified under FCRA 604/

Credit reports available thru annualcreditreport.com usually proivde the coding of their stated permissible purpose.

Otherwise, you would have to contact the CRA and ask as to what was the stated permisible purpose of the inquiry.

Apps for banking accounts can qualify as a  business transaction inititiated by the consumer, and entitled to access to your credit report provided they have a legitimate business need to review the consumer's credit in connection with the account.  They can assert such a need if the account could place them in jeopardy of loss, such as via an overdraft that creates debt.