I applied for a Citi Bank CHecking account and they ran a credit report inquiry...can they do this??????

Question

I never had Wells Fargo or Chase open a credit report when i got a checking account yet Citi ran one...can they legally do this?

I called customer service and they told me that they do this when someone opens a savings and or checking...and didn't explain further...i dont' want them to run credit reports like this without my consent...

I SPECIFICALLY INDICATED THAT THEY CAN'T SHARE INFO WITH CREDIT BUREAUS

Answer 1

Yes they can check your credit report with credit bureau’s. You can prevent them from sharing info with another parties by opting out. For example. You could prevent Citibank from sharing your personal info with Capital One. I find sharing helpful because if you filed bankruptcy and got another credit card. It will show you making a good effort to get back on track. Which would help you get a checking account. Most local banks don’t do credit checks. I have asked unless they are all lying to me. They do cheq system and telecheck. If you had a bank with good usage of your checking account, ask the bank for a referral letter

Answer 2

Ci ti Bank you are in for a surprise, should you be overdrawn $0.50 and refuse to pay it, they might even put a judgment against you. Maybe not, then banks are in business to make money and the three Major Credit Bureaus will supply your credit history to them. You ask a bank for a service, it's their obligation to review your credit history. You tell them they can't, then they won't do business with you. Unless you just robbed the bank down the street and want to open a checking account with $500,000-----Golly gee, they'll offer you coffee and tell you to keep the pen-----yet will still do a credit check, were you not asked for proof of identification and the name of the last bank you had a banking relationship with so they could verify your identification, US Social Security Administration number with them and with the credit bureaus----this is 2006 not 1886

Answer 3

Yes, it is legal for the bank to run a credit report when you apply for a checking account. It is like financing a car, they too want to see your creditworthiness. If you read the agreement you signed as to the terms and conditions, there is also a clause that states they can obtain information on you to confirm your identity or for credit purposes.

Answer 4

Most likely you put your actural or electronic signature on something agreeing to it. What I would be concerned with is whether it would be a "soft" (no points) or a "hard" (avg 3 pts) hit on your credit.

If they go through a company like E-fund's qualifile, it will probably be a "soft" hit, similar to those by credit card "pre-approval" processes.

If you are declined you have a right to ask why and get a free copy of whichever consumer report they used. Since equifax and chexsystems merged it has become more common place.

Answer 5

Absolutely. And you cannot tell a bank not to share your information with the credit bureaus. Credit bureaus know everything about your financial history.

Answer 6

Some are doing it as a standard to see if you will be a good customer or a high risk. Not to worry, even some employers do credit check backgrounds before hiring to see how good of a person you are with your finances. They figure that if you can't pay your bills and manage your finances, you won't be a good customer they can loan money or give credit to. Welcome to the new age.

Answer 7

Anytime you give your social security number out anyone will more than likely run a credit check on you. When you signed for getting your bank account there was something probably in there stating they were able to obtain some "information" about you.

Answer 8

It's all because of the Patriot Act now.

It is done to further verify your identity.

From what I understand, the level of checks that a bank does just for a checking account is different from if you were applying for a line of credit, so it shouldn't even affect your score.

Answer 9

Citi Bank just ran a credit check to verify your information. Federal law requires them to do this. And they're not sharing information or reporting your account to the credit bureaus, just verifying who you are.


https://web.da-us.citibank.com/cgi-bin/citifi/scripts/help_desk/help_desk_item.jsp?BV_UseBVCookie=yes&BS_Id=FAQ354&M=S
Check out the last sentence in the paragraph.

Answer 10

Look at what you signed when you applied for the account. It probably says right there that they're going to run a report.

Be sure to read all of anything you sign. Ever.