Aren't banks required to tell you why they rejected your account application?

[Warstud]

I have opened half a dozen bank accounts the last 90 days without issue

Why do you need a half a dozen bank accounts ?

 

[miden851]

in reality yes, they are obligate to give you why they declined opening the account in your name; Normally, banks send a letter in mail stating the reasons for the decline; however, those online banking options are different animals

 

[CKN]

Why do you need a half a dozen bank accounts ?

This is the question........

 

[Hall]

If that concerned, why not make formal request as to the reasoning?

My money says they simply will ignore the inquiry and anyone 'local' will tell him they don't have access to the reason(s) or any input in it (and I don't think they're lying).

I know of one instance where a national bank (Chase) closed a business' bank accounts (but not credit card ). They gave the company ~3 months notice to get things moved but the decision was cast in stone. No one at the local branch could help and even the "rep" that they assign to business accounts could get a reason. The most the rep was able to say is they do this to more than one company every month and "a computer makes the decision". This isn't hearsay either but it's not "my" account.

 

[fisher83]

There's a number of reasons that they may decline to open an account. I've worked in the fraud prevention/AML world for 15 years. We really don't have enough information here in the post to determine the specific reason and the bank is unlikely to provide the information either. Any point of contact at the bank would typically be in a customer service type of role and they don't have any transparency into back office investigations. I don't think it's worth pursuing. I'd just move forward with another bank if you still want to open another account. I don't have anything to do with customer onboarding but my role does entail exiting customers for suspicious activity. In those instances we don't provide the reason to them unless compelled to do so via subpoena. Generally though, when we boot people out they just take their check and leave quietly.

 

[zzyzzx]

We are unable to provide additional information.

Aren't banks required to tell you why they rejected your account application?​

Yes, and no. Just like getting denied for a loan application, they have to vague because of the potential for lawsuits.

 

[Jimmy_Russells]

This question is probably better directed at the people who denied the application

 

[BISCUT]

My money says they simply will ignore the inquiry and anyone 'local' will tell him they don't have access to the reason(s) or any input in it (and I don't think they're lying).

I know of one instance where a national bank (Chase) closed a business' bank accounts (but not credit card ). They gave the company ~3 months notice to get things moved but the decision was cast in stone. No one at the local branch could help and even the "rep" that they assign to business accounts could get a reason. The most the rep was able to say is they do this to more than one company every month and "a computer makes the decision". This isn't hearsay either but it's not "my" account.

You're probably correct. The difference is often a could but won't. Seems more and more big businesses are moving toward this model.

 

[John105]

My guess is your now flagged as someone trying to launder money - due to opening so many accounts. There are all kinds of rules around banks reporting such suspicious activity.

Bank of unamerica refused to open accounts for my children 10 years ago - when they were like 10 years old - using this excuse. I think the person at the bank was simply having a bad day. We went to a different bank.

They had no problem opening accounts at Bank of Unamerica a few years ago.

Why go back you ask - because all bankers are crooks. Makes no difference. Use the one with the most free ATM's.

Your story reminded me of my wife trying to change her name on her DL after we got married. A nasty supervisor at DMV stated our marriage certificate is not valid (dunno it was issued by the City of New York, has to have had some validity ) We were so upset we left and I told her I bet you'll just have to use your old license. F this. We went to another DMV and there was no issue whatsoever. It is bizarre when one single individual who is 100% wrong, has the power to act badly and deny a transaction...

 

[atikovi]

Why do you need a half a dozen bank accounts ?

Do you keep track of interest rates? You do realize that they have been going up the last few months. 2 months ago 3% was awesome so I got a saving account at that bank. Then a 1 month ago, some banks had 4% accounts so I opened accounts there and moved my money from the 3% accounts there. Recently, 5% rates started showing up. I opened a Primus savings account at 5.03%, but with the recent bank failures, I'd rather not keep over $250k in one account, hence applying for said account here. Not a hugh deal as my next lower accounts are at 4.75% and 4.71%, but I'd like to maximize the earnings whenever possible.

 

[atikovi]

This question is probably better directed at the people who denied the application

I understand that, but as I posted originally, they said, We are unable to provide additional information. I can't believe some class action or discrimination lawyer hasn't started a case on this. They can deny you if your name sounds african american, or your address is in a hispanic area, or whatever profiling they do, and nobody knows about it because they wont tell you why you were denied.

 

[Pablo]

Do you keep track of interest rates? You do realize that they have been going up the last few months. 2 months ago 3% was awesome so I got a saving account at that bank. Then a 1 month ago, some banks had 4% accounts so I opened accounts there and moved my money from the 3% accounts there. Recently, 5% rates started showing up. I opened a Primus savings account at 5.03%, but with the recent bank failures, I'd rather not keep over $250k in one account, hence applying for said account here. Not a hugh deal as my next lower accounts are at 4.75% and 4.71%, but I'd like to maximize the earnings whenever possible.

Cheesus just get a brokerage account and buy short term CDs at the highest paying banks of your choice. So easy I can do it. And there is no cost.

 

[GON]

Do you keep track of interest rates? You do realize that they have been going up the last few months. 2 months ago 3% was awesome so I got a saving account at that bank. Then a 1 month ago, some banks had 4% accounts so I opened accounts there and moved my money from the 3% accounts there. Recently, 5% rates started showing up. I opened a Primus savings account at 5.03%, but with the recent bank failures, I'd rather not keep over $250k in one account, hence applying for said account here. Not a hugh deal as my next lower accounts are at 4.75% and 4.71%, but I'd like to maximize the earnings whenever possible.

I would have guessed this was your bank.

I do think, if one has the time to manage it, keeping funds in multiple institutions is a solid course of action. A financial institution can get shut down, and history has shown getting the funds is very quick, but what happens if there is a glitch, fraud, etc.

 

[M56959]

Ask the bank not anonymous strangers on an oil forum.