I opened up a Chase checking account and learned that they pulled an inquiry! I was wondering why the banker was able to say: You are preapproved for a visa with a $XXXX line at the time... now I realized they pulled an inq on me. She didn't tell me she was pulling one, is that legal?
you should read what you sign before you sign it. Almost every bank i know pulls credit report (and chex) WAMU might be an exception.
George...that would not be a good idea. The Chase new account agreement does mention credit inquiries. Why would the CRA care if you did not apply for a "Loan" or a "Credit Card?" There ARE OTHER permissible purposes for pulling a report. If you sign the new account form and do not read clearly, then too bad.
yes, it is a permissible purpose. They have the right to an inquiry because it's for eligibility for a checking account. You don't have to sign anything specific, they still have permissible purpose under FCRA 604. The fact that they also use the same inquiry for a visa would be a bonus. Two items for one inquiry. If you want the visa, take it and thank them for not hitting you with multiple inquiries. By the way, lately you should expect an inquiry for a new account. So much fraud going on, they are trying to both protect you and themselves. What if you had an identity fraud issue, but they didn't check your credit report... how would they know someone was trying to impersonate you??? If they check, they can see if there are any warnings... and they can approve you for credit at the same time. Very standard and customary.
First Chicago and Bay Bank were pulling inquiries for regular checking accounts as far back as the late 80s. Same deal as Chase - you get pre-approved for overdraft, credit cards, etc. at the same time. The banks call it cross-selling. As everyone said previously - it's permissable purpose, and I'll bet it was in the agreement you signed too. -mj
Curiously enough, however, when my fiance opening a business checking and money market for his consctruction firm a few months ago, Chase DID NOT pull a report either on him, nor me (an authorized signer). Nor did they pull DNB. They had, though, requested and received a letter of recommendation from his previous business bank of some 14 years. Maybe that had something to do with it.
So somebody has a BAD credit report with some "LATES"...but a "CLEAN" CHEX report...they are going to be DENIED for the stupid checking account???
I GUESS YOU "DRIVE" BY YOUR CREDIT REPORT...YOU MIGHT AS WELL "WRITE CHECKS" BY YOUR CREDIT REPORT TOO!?!?!?!?!?!
George, the credit report is being used as a broader indicator of overall "trustworthyness." Now, you and I may feel this is pure BS, but in many cases poor performance with credit MAY indicate poor performance with other "banking-type" products like checking accounts. MHO
Banker-folks I've talked to say that they need to better screen customers becasue of fraud (kiting, bad checks, etc.) and because debit cards can be abused "like" a credit card (i.e. when the Visa/MC system is down, there are "floor limits" that allow transactions under certain amounts to be authorized). I think it's bunk - banks are employing a "cream" strategy, trying to get the most creditworthy (and most profitable) customers and leaving the less profitable ones for their competitors. It's good business - but also explains why so many people are "unbanked" and use currency exchanges. Think about when you last opened an account - you get the basic checking - then they offer overdraft protection (18%), lines of credit (10-18%), cards (9-14%), home equity products, and so on. Every major bank is singing the same tune now - maximize customer relationships. B of A, Fleet, BankOne all have put this kind of verbiage in their annual reports - organic growth (increasing customer account share) vs. buying marketshare (aquisitions). -mj
