A new bank in town is offering good loan rates and I want one, but they say I have to keep my checking account there. Can they do that?
Yes. When a bank wants to serve more of your financial needs, they will often bundle preferable pricing of them together. That is what is being done here, and a bank is able to restrict the products in this manner. The Anti-Tying provisions of the Bank Holding Company Act, specifically approve this sort of requirement. What they cannot do is require that you also use non-traditional banking services from them. As one example, they can't give you a car loan and tell you the best pricing is only available if you buy life insurance from them.
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Yes. When a bank wants to serve more of your financial needs, they will often bundle preferable pricing of them together. That is what is being done here, and a bank is able to restrict the products in this manner. The Anti-Tying provisions of the Bank Holding Company Act, specifically approve this sort of requirement. What they cannot do is require that you also use non-traditional banking services from them. As one example, they can't give you a car 