Banks requesting credit reports on deposit accounts?

[minnie1928]

Did anyone else receive something from their bank regarding a new process where they may pull your credit report? Capital One recently sent out letters stating that "Capital One Bank may view you credit information as part of managing your account".

I spent many, many years in banking but have been out for the last 4 years or so. Does anyone know what changed that would allow them to do this on deposit accounts? I'm wondering if this is a Capital One decision or if this if going to be more predominant in the industry.

If it's only Cap One, then I'm moving banks. As a customer with only deposit accounts, I can't see where their risk is that they need to review my credit report.

[snafu]

You might benefit by reading a few reviews of Capital One on Yelp or one of the consumer sites. If you decide to close the account be very careful. If you have any automatic deposits or bills you need to arrange, confirm and verify the changes have been made before taking action to close your account.

[minnie1928]

Thankfully I have nothing tied to the accounts, which makes it very easy for me to .

[snafu]

minnie, one of the blogs noted Capital One is cited & fined by the new Consumer Financial Protection Agency for misleading 2 million clients.

[minnie1928]

I saw that...but that ruling appears to apply towards credit card owners/applicants that were steered towards other costly products or services. I have no credit accounts with Capital One, that's why this makes no sense to me.

[DebtFree&Broke]

I used to work at a credit union and we would check your credit when setting up your first account (savings/checking). I thought all banks/credit unions did that.

[kork13]

I used to work at a credit union and we would check your credit when setting up your first account (savings/checking). I thought all banks/credit unions did that.

Ditto. My understanding is that banks will ALWAYS check your credit when you open a new account with them. Even if it's just a deposit account, they want to know if you have a history of overdrawing your accounts or not paying your debts.

[minnie1928]

I used to work at a credit union and we would check your credit when setting up your first account (savings/checking). I thought all banks/credit unions did that.

They pull something called a Chexsystems report. It's kind of like the credit report equivalent for deposit accounts. As far as I know, deposit accounts are not reported to the credit bureaus...because they're not credit accounts.

[marvholly]

I have been on my parents checking account at a local bank for YEARS - begun so I could pay their bills when they traveled. They do a MONTHLY check on my credit. It has cost me BIG time on my FICO since I have no car loan, no student loan and no mortgage; just routine cc bills all paid off monthly.

They refuse to take me off the account even though my brother and oldest daughter are still on the account if some emergency should occur.