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

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Tried to open this 5% money market account,


After going though hoops to apply, including submitting a face scan from my phone, I get the following message,

Thank you for applying for an account with us at TotalDirectBank. We regret to inform you that we cannot approve your new account application. We are unable to provide additional information.

WTH? They can't tell me WHY I wasn't approved? I have opened half a dozen bank accounts the last 90 days without issue, and they didn't approve me and WONT say why?

Is this legal? If you're rejected for a credit card, they send send you a letter letting you know what the denial was based on. Not here apparently. Not a huge deal as I already have two other banks paying over 5% interest.
 
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.
 
Maybe they think you are a suspicious individual after opening so many bank accounts in a short time.
How would they even know how many bank accounts I have or have opened recently?

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.
That's fine, but at least if they said so, I would know why, and could set it straight. Here they won't even tell me why.
 
How would they even know how many bank accounts I have or have opened recently?


That's fine, but at least if they said so, I would know why, and could set it straight. Here they won't even tell me why.
Everything is linked now. Banks can access all of your information with just a few keystrokes, including other accounts, debts, deposits, etc. Opening multiple bank accounts in a short time raises big red flags, and I hope these weren't reported to the feds.

I agree the bank should give you an explanation.
 
We are unable to provide additional information.
Pretty clear there. They are a private business and can choose who they do business with (as long as they don't discriminate).

I have opened half a dozen bank accounts the last 90 days
🤔

If you're rejected for a credit card, they send send you a letter
You weren't opening a "credit" account. Don't confuse the two or think the same rules apply.
 
How many 'free toasters' does a guy need?
Or don't they do that anymore.
Don't need any, but do like higher interest rates.

Pretty clear there. They are a private business and can choose who they do business with (as long as they don't discriminate).
How would I know if I was discriminated against or not if they don't tell me why I wasn't approved? A credit card company is a private business as well and federal regulations requite they tell you why you are rejected so in case their decision was based on erroneous information, you can get it corrected.
 
Tried to open this 5% money market account,


After going though hoops to apply, including submitting a face scan from my phone, I get the following message,

Thank you for applying for an account with us at TotalDirectBank. We regret to inform you that we cannot approve your new account application. We are unable to provide additional information.

WTH? They can't tell me WHY I wasn't approved? I have opened half a dozen bank accounts the last 90 days without issue, and they didn't approve me and WONT say why?

Is this legal? If you're rejected for a credit card, they send send you a letter letting you know what the denial was based on. Not here apparently. Not a huge deal as I already have two other banks paying over 5% interest.
They can find reasons to reject even the most credit worthy individuals. Those letters are a joke. But basically-this is just another gripe thread-like to Home Depot thread recently, or a dealer thread, etc. There are plenty of other banks-but you could still get turned down.
 
The better explanation is this:

Somewhere over 80% of banks use the ChexSystems reporting, which is essentially the same thing as credit reporting, but for Bank Accounts. They track bad checks, negative balances, other bad marks, and the opening a closing of accounts.

Opening a bunch of accounts in a short time can get you flagged. A relatively common fraud is to open a bunch of accounts in a short timeframe, move a bunch of money around in the accounts (typically from a bad check), and then take the money and run while one of the banks is left holding the bag. Check Kiting is the common term for this.

You call it speculation. Banks call it protecting themselves...
 
Tried to open this 5% money market account,


After going though hoops to apply, including submitting a face scan from my phone, I get the following message,

Thank you for applying for an account with us at TotalDirectBank. We regret to inform you that we cannot approve your new account application. We are unable to provide additional information.

WTH? They can't tell me WHY I wasn't approved? I have opened half a dozen bank accounts the last 90 days without issue, and they didn't approve me and WONT say why?

Is this legal? If you're rejected for a credit card, they send send you a letter letting you know what the denial was based on. Not here apparently. Not a huge deal as I already have two other banks paying over 5% interest.

Back in the day we used ChexSystem (SP?) which would flag certain banking behaviors. It could be something as silly as someone with the same name as you.

Remember you're not applying for credit so the rules are a little different.
 
How would they even know how many bank accounts I have or have opened recently?
They do a manual or automated query on a government and private databases. Everything you do is stored somewhere and available to various entities.
 
The better explanation is this:

Somewhere over 80% of banks use the ChexSystems reporting, which is essentially the same thing as credit reporting, but for Bank Accounts. They track bad checks, negative balances, other bad marks, and the opening a closing of accounts.

Opening a bunch of accounts in a short time can get you flagged. A relatively common fraud is to open a bunch of accounts in a short timeframe, move a bunch of money around in the accounts (typically from a bad check), and then take the money and run while one of the banks is left holding the bag. Check Kiting is the common term for this.

You call it speculation. Banks call it protecting themselves...
This. Exactly this.
 
Nobody here is going to be able to tell you the why behind it. If that concerned, why not make formal request as to the reasoning? Local branch visit and meeting with manager? Or simply move on to a bank who actually wants your business.

Feds are indicating wise idea to move your millions into the big banks as your deposits apparently are 100% insured, even over the 250k mark whereas the little banks.....Not so much says Janet Yellen!!
 
Most if not all financial institutions pay for a report that does an inquiry on your checking account and related history. This is not a credit report. I wonder if the vendor that provides this product to financial institutions tracks new accounts?
 
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