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Isn't Requiring a SSN Illegal?

Isn't it is a violation of the "Privacy Act" for a bank to require a social security number from me as a condition of doing business? Don't they need to have a "Privacy Act Release Statement," signed by me, on file? This is backed up by the Social Security Administration.

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SSA rules actually say it's illegal to require a social security number in the absence of a regulation or legitimate use. There is clearly not only a regulation but also a law -- IRS and Bank Secrecy Act rules, plus the USA PATRIOT Act. If you are attempting to open an account, you must provide the financial institution with your social security number.

Published on BankingQuestions.com 7/28/06