I wanted to ask the wise FW community about a strange experience I had with a bank recently.
I recently opened a new checking account and a week later deposited a check from my old bank. They put a hold on it (quite normal for a new account) but a few days later I happened to see a printout of an email from the compliance officer confirming not only that the check had cleared from the old bank, but it also listed the date I had opened my old account, when I closed it, the last few deposit dates/amounts and average balance for several years back.
My question is, how could the new bank have obtained all this information, when the old bank has a strict privacy policy? My understanding is that they should not release that information without authorization from me. I asked the bank but they refused to tell me how they obtained the info, citing internal bank to bank procedures.
It would be really helpful if someone who works in the banking industry sees this and responds.
It was on the branch manager's desk while we were discussing my account (along with the other forms I had to fill out). I couldn't take it but he did admit to having the info when I called him later to let him know that I'm closing the account first thing Tuesday.
Can you share what two banks were involved? Perhaps they share a corporate parent or something that facilitates such datasharing? Or are they closely competing banks that may have two employees who are acquaintances doing this on their own?
On your account application did you list where you hold any existing bank account (where the fine print might have given consent)? Or did they connect your dots purely by the check you deposited?
Although in the way back of my mind I cant help but think "TROLL" - you deposited a check from your old bank, but the email showed the date you had closed that account? And your account papers just happened to be sitting on the manager's desk WEEKS after opening the account? I'm not calling your bluff and will take your story at face value, but it definately smells like there may be more to this story......
any1
New Member
posted: Sep. 3, 2010 @ 10:34p
My old bank is one of the top 3 largest banks, while the new one is really small and new - they have nothing to do with each other, but I'm sure they do compete.
No, I did not provide any account info on the application, they got it all from the check which they were verifying for funds. Although I opened the account some time ago, I actually deposited the check this week. The check was for a 5 figure amount, so they somehow felt compelled to go beyond just verifying the check.
To clarify, I closed the old account the day after the check cleared. And my documents were on the desk because they had forgotten to give me an additional form to fill out.
They probably asked for a bank reference. Usually the customer should be the one to have this sent to the concerned bank,
perhaps your old bank offered it as a courtesy to show you are a resoonsible accountholder...but they certainly should have asked you
bankdealsrule
Senior Member
posted: Sep. 4, 2010 @ 10:12a
any1 said: while the new one is really small and new. No, I did not provide any account info on the application, they got it all from the check which they were verifying for funds. Although I opened the account some time ago, I actually deposited the check this week. The check was for a 5 figure amount, so they somehow felt compelled to go beyond just verifying the check. To clarify, I closed the old account the day after the check cleared. And my documents were on the desk because they had forgotten to give me an additional form to fill out. Most newly opened checking accounts place longer holds and delays when you deposit check(s) totaling more than $5,000 on any day, or, if the bank believes a check you deposit will not be paid. Maybe your bank believes your check of 5 figures will not be paid, and so they do a longer hold and delay and investigate the check further. Can you tell us how many business days did it took from the day you deposited at new bank to the day your old bank cleared the funds from your old account balance? Why were you at the bank desk, again, days or weeks later after you opened the new checking account with the really small bank? What form did they forget to give you to fill out? And, how were you notified of this? Edit Add: What were on the bank's application, disclosures, terms and conditions, account agreements, and their privacy policies on the day you opened the new checking account?!? Is it online and direct us there? Somewhere in that fine prints may have said you agree to bank reference or research. Wierd: in the future you could have asked for a bank check from old bank; in that case, it has the old bank's address info and route number, but it wouldnt have your old checking account on it. Or, say you got a check of $66,565.33 from inheritance... your bank will do privately research that too. And, if you deposit a $5.00 mail-in-rebate from Store, they'll do it too!?! Info about date opened accounts and closed are on ChexSystems. What bank is it?!? What are they offering that your other bank isnt?
bankdealsrule said: Info about date opened accounts and closed are on ChexSystems.False. ChexSys reports only show inquiries (and, of course, negative stuff like bounced checks). It does not tabulate account details like credit reports do.
Were the banks two "local" banks? There several banks that have different names and yet are owned by the same parent company. In this case I would imagine information would be shared between the institutions. This is even more prevalent now with stronger banks buying up failed ones.
There is some standard between banks for reporting stuff like that. Six-month average balance, age of account, etc. It's for advance clearance of checks or for documenting a line of credit at a casino. I don't think they can give it out without consent though.
Anytime I've needed to have this info released to someone, the bank has insisted on written authorization before doing so.
How were you harmed by this, exactly? It's likely you gave them permission in the account opening documents to check on your credit and banking history. The application would serve as the release for the old bank.
any1
New Member
posted: Sep. 4, 2010 @ 11:43p
The banks are not related in any way - the old bank is one of the largest while the new one is very small/niche.
They put an 11 day hold on the check (which is not a problem for me) even though the funds cleared the next day.
I reviewed the documentation later, and did not find anything where I authorized something like this.
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