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Checking Account Turndown
Question: We just turned down an applicant for a checking account. This person had an account with us before, and our experience was not good. Do we have to explain our reasons for the turndown?
Answer: No. Now, if you were rejecting because of a consumer report (e.g. a check reporting agency report), you would have to give an adverse action notice under the Fair Credit Reporting Act. But you are relying on your own experience, so there is no notice required.
Remember, too, that there is no anti-discrimination law for accounts as there is for credit...with the exception of the Americans with Disabilities Act.
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Comments & Questions
If you would like
to comment on legislative topics or if you have questions about this
information please call our public affairs expert, Mae Beth Palone at
(800) 749-4228 or E-mail mbpalone@ibat.org.
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