Denied DDA and SAV Account Opening Requests

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Question:

The commentary to Reg B and Reg V recognizes that the definition includes the phrase “arranges a loan” but also points out that in requiring credit score disclosures, section 1100F of the Dodd-Frank Act does not state that the credit score disclosures are only required for adverse action decisions related to credit. My question - we use eFunds/QualiFile which interfaces with TransUnion for both Debit and Credit information that translate to a score for opening DDA and SAV accounts. Are we now required to disclose in the same manner for denied DDA and SAV account opening requests?

Answer:

ChexSystems has notified its clients that QualiFile Scores are credit scores as defined in the Fair Credit Reporting Act, and if they are used in making an adverse decision relating to a consumer's request to open an account or obtain a deposit service, the financial institution must include the credit score disclosures in FCRA adverse action notices under Section 615(a). You should note that, although you can make most of the Section 615(a) notice of adverse action orally, in writing or electronically, the requirement to disclose (1) a numerical credit score used in taking the adverse action and (2) information about credit scores can be satisfied only in writing or electronically. That part of your Section 615(a) disclosures cannot be made orally.

First published on BankersOnline.com 11/28/11