Howdy - I'm new here. Found this place looking for help while surfing the web. My 20 year old son went to work for a bank. Within a day or two after being hired, he opened a checking account and applied for a credit card while at another branch of the same bank (he was there for some training). Without his knowledge or permission, the bank representative also applied for a $1000 line of credit for him. He did not know this had happened until receiving a denial notice in the mail a couple weeks later. He told his manager about this and his manager was upset. The manager investigated and found out that the personal banker had not only applied for the credit, but when she found out it was denied, she called and tried to argue that the line of credit should be opened. The manager said her doing so was not standard operating procedure. The personal banker told my son's manager that my son had given her permission to apply for the credit. I'm not sure why he was denied. He has been a teller for two years, has a small car loan, and is a very good manager of his finances. I'm not as concerned about the denial, as I am about the PB placing the application. Do we need to be concerned about the PB doing this? How will the denial affect his credit record? Should he pursue this problem more aggressively with the bank? Thanks for your time.
Was this a separate line of credit, or was this overdraft protection for the checking account? Although he might also be concerned about the application that he did not believe he authorized, he should also check into why it was turned down. Be aware that these days, banks pull credit reports even when credit is not being extended, even when opening savings accounts. There are federal regulations, under the umbrella of anti-terrorism and anti-moneylaundering, that require that banks "know their customer". Whether an employee or not, they should provide an adverse action notice, in writing, indicating the reason it was turned down, and if credit report information was used in that decision, what credit report was pulled. He can then use this letter to request a free CR from that CRA, to ensure that there is no erroneous derogatory information on his report. Opening an unrelated line of credit that was not applied for may be an issue both of following correct bank policy, and exposing the bank to the potential risk of a fraudulent unauthorized account being opened, but if this is, say, an overdraft line of credit, that technically was not authorized but is generally useful to have associated with a checking account, he may want to focus on why it was declined. In the banking business, because employees handle other people's money, good credit is important, and bad credit can hinder advancement. He may wish to focus on working with the bank to find out why the (non)application was rejected, since it is probably to his advantage, both personally and for his job, to establish a record of good credit. If he learns how to do this at 20, he will be ahead of a lot of people by the time he wants to buy a house. Applying for lines of credit that a customer did not authorize is clearly an issue for the bank in ensuring that its employees follow policy for security and legal reasons. In particular, they don't want their employees running afoul of FCRA, whether accidentially or deliberately. Although your son should not allow unauthorized applications to occur without challenge, he should also look after his own best interests.
First determine what is. Then determine what you want, and what you are likely to achieve by negotiation, and with who. Then determine what legal or policy arguments push the other party to deliver what you want, making it in their best interest to do so. In this case, unlike a customer walking in the door, there is the additional issue of working for the bank, and on what basis that relationship will continue. His bank manager may choose to push the policy issue, but that is separate from what position your son takes regarding either the unauthorized application, or resolving why it was denied. Your son's personal interests are separate from the bank's policy interests.
Thank you for the ideas posted so far. This was not intended to be an overdraft protection. The credit card he applied for (and was given) was set up as the OD protection. I have been working with him to steer him away from any retaliatory thinking. I've told him that the two most important issues are: 1) making sure there is not a problem with his credit rating - either prior to, or resultant from this incident, and 2) maintaining his reputation with the bank / his manager. This is his second job as a bank teller - he was two years at his previous bank. (If you'll permit a father to boast - he has been hired to be the head teller at this bank.) He has been very responsible with his duties, but this really upset him. Largely, I think, because he cannot imagine himself doing that to someone. The bank's policy seems to be contrary to what this woman did - as evidenced by her telling her manager that David authorized the application, and my son's manager saying that it should never have been done. Though I too am frustrated about what seems to me to be a breach of trust, I am mostly concerned about making sure my son's reputation, both credit-wise and as an employee, is maintained. I will have him submit a request to find out why he was denied and see if there was erroneous information that contributed to that decision. I have suggested that he ask for a letter from the bank stating that the application should not have been submitted. He said that his manager is working to see what can be done about his credit. Thank you again for taking the time to read and reply.
I'm sure you can word a request for an adverse action notice without saying an account was even applied for, if he wants to defer the issue of the original application. Just refer to being notified he was turned down for a line of credit, and he wants to know the reason, and what credit reports were pulled. The issue of the credit report inquiry which would have temporarily lowered his FICO scores, is probably not significant, unless he has marginal scores and is applying for a home loan in the next few months, or the bank has totally screwed up and there are a whole bunch of inquiries. In that case, they can have the CRA code them as Account Review, in which case they would have no effect on scores at all.
