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FRCA apply to banks that check credit to open savings or checking account?


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Hello - I have tried to open a bank account at several banks where I was denied because of my credit report (Trans Union and Experian) which was checked after pulling up a clean report on ChexSystems. I have borderline credit and was denied credit to get a car which I really need after my other car breaking down. After reviewing my credit, it is possible that all the inquiries from banks that I tried to get a bank account at affected my score and if the 2 dealerships that I applied at were truthful in telling me that I was really borderline, maybe those inquiries could have made a difference? I don't know, but my question is:

1 - Can banks check credit for a savings or checking account - is that "permissible purpose" (in all instances, I did not authorize the bank to pull my credit, if I knew they were going to pull my credit report, I would not have even applied because my credit is not that great right now)?

2 - If I am not served with the decline letter with the contact information of the CRA, is that is a violation of FCRA?

3 - If so, can I pursue that legally without it being seen as frivolous in the eyes of a judge (or does that not matter?)?

Thank you for this great board which is helping me learn a great deal about my rights, and how to best pay what I owe to my greatest advantage!

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I doubt that the inquiry only caused you being declined for a car loan. Being borderline means there are probably other baddies on your CR.

I would suggest you clear up all other negative items on your CR and bring your credit score up before you put your time and energy into fighting one inquiry from a bank.

After all, what's more important? Getting the car or fighting with the bank?

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  • 2 weeks later...

True - I do have other things on my CR that likely contributed to being considered borderline, however the one bank was being a total jerk so I was thinking if the bank violated FCRA, I would report them or take whatever action I could against them.

True, my time is likely better spent on my credit report rather than inquiries, but it is always nice to have a punching bag too! Ahhhh well, I always have my husband - LOL

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If that bank account comes with a debit card (with a Visa or MC logo on it) or comes with overdraft protection, banks WILL pull your credit report and they certainly have permissable purpose to do so. If they decline due to info on your reports, they ARE required to notify you in writing.

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