Pull a Credit Report for an Account

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Question:

Is it legal to pull a credit report when someone would like to open a checking account or savings account, even when there is not a loan product attached to the checking or savings? Can you refuse to open a savings account based on a poor credit rating?

Answer:

Yes, opening a deposit account would give you a permissible purpose to pull a credit report. If you refuse to open the account due to the information obtained from the credit report, you would have to provide the applicant a FCRA adverse action notice.

First published on BankersOnline.com 8/13/07