QUESTION
Does my bank have the right to get my credit report even if I have no loans or credit cards with them and don''t intend to?
Asked on Jan 05th, 2012 on Consumer Law - South Carolina
More details to this question:
When I checked my credit report, I saw where my bank got my credit report on the exact same day that I closed out a $50,000.00 cd with them and transferred it to an online savings account with the same bank since it offered a higher interest rate than their cd rate. The money is still in their bank. Why would they need my credit report, and can they do this legally?
1 ANSWER
Mortgage Banking Law Attorney serving Peachtree Corners, GA
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Franzén and Salzano, P.C.
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Federal law sets forth permissible purposes for credit reports. Such purposes include allowing the bank to review your credit report to ensure that you meet the terms of your accounts with the bank. It is also permissible in connection with a business transaction which you initiate or the establishment or maintenance of a credit transaction. Thus, there are several possible justifications for the bank to do so depending upon the type of accounts you maintain with the bank. Still, I would not hesitate to ask them why they did so. If it puts your mind at ease, it is my understanding (although I am not certain) that this type of inquiry is not detrimental to your credit score as are some other types of credit report pulls.
Answered on Jan 06th, 2012 at 1:12 PM