I just got my credit report and it indicates my bank made an inquiry into my credit recently. That makes no sense to me, because the only thing I have with them is a checking account, and it's not a new one. Can they do that?
The bank can pull a credit report when it has a legitimate need in connection with a business transaction initiated by the consumer. That's what the federal Fair Credit Reporting Act says. The issue is whether the bank has a "legitimate need." Certainly the bank has one when you're opening the account, but whether they have one when your account has existed for a while is less clear. Did you apply for overdraft protection or some type of line of credit tied to your account? Perhaps that was why they pulled it, which would be permissible. Don't hesitate to ask the bank, if you didn't apply for overdraft protection or some other feature/benefit that would have prompted new decision-making at the bank. You have a right to know whether they had a lawful basis for obtaining your credit report, and you want to make sure there isn't some identity thief out there using your name to apply for accounts!
BankingQuestions.com is a free service made possible by the generous support of our advertisers. Advertisers are not responsible for site content. Please help us keep BankingQuestions.com FREE by supporting our advertisers. When you see an ad for a product or service you may have an interest in, click through to learn more.
Accounts
Article
Q&A
Podcast
Video
Blog
Discussions
PDF
Powerpoint
The bank can pull a credit report when it has a legitimate need in connection with a business transaction initiated by the consumer. That's what the federal 