Question & Answer

Question: We have had an objection raised by one of our applicants for a checking account because we have a box for marking "male" or "female" on the new account application, as well as a line for date of birth. He wrote us a letter saying that requests for sex and age are illegal, being discriminatory. Can you tell me if we are permitted to ask these questions?

Answer: "Discrimination" is another word that has us running a little paranoid these days. But I've checked pretty carefully on your problem.

There is nothing "illegal" about asking for gender or age on your new account application. As a matter of fact, on some financial institution applications, the information is required. It is, however, illegal to turn down an account because of the answer. That's where the "illegal" part comes in. You might want to soften your request by putting at the beginning of the line: Mr./Ms/Miss/Mrs?check one, rather than a male/female line. (We learned that from the airlines)

As far as the date of birth is concerned, under the Know Your Customer rules we expect out of Treasury later this year, DOB will probably be a requirement. Most financial institutions want this information for two reasons-their marketing department, which is interested in the make-up of your customer base; and in the case of filling out a Currency Transaction Report or a Criminal Referral Form, you must have the DOB. Good reason to have it on your new accounts form.

Two last thoughts.

Keep in mind it is the choice of the financial institution as to whom they choose to have as customers. You have the right to turn down an applicant for an account-especially if you feel you are not the right service institution for them.

And it is the policy of many institutions not to open accounts through the mail. You might want to consider making this a policy of your shop.

Copyright © 1994 Bankers' Hotline. Originally appeared in Bankers' Hotline, Vol. 5, No. 2, 9/94