We have an overdraft protection product for our customers. If they carry an overdraft balance for over 30 days we mail them a interest free loan to sign to cover the overdraft and take away the protection in the future. When we open a new account, can we run a credit check on each one without them signing a form allowing us to do this to help in our decision on allowing them the use of this overdraft protection, or do they need to sign a form allowing us to do the credit check? I know with a loan we must have a application signed before we can check credit. I wasn't sure if a new account had exceptions to this rule.
Is there a form for a denial to open a checking account? Example: "Statement for reason of adverse action".
We need to have a short list on when we can deny opening a deposit account. We know about the consumer reporting requirements but, sometimes there are events that caution us to withhold deposit account service.