Can a bank ask citizenship status?

[aidan80 9]

I know as a LPR in the workplace after being hired the employer cant come back and demand a copy of your card if the one on file expires but.. I’ve been asked my citizenship status when applying for a loan! They can’t do this can they? Factor in whether or not you’re a citizen before applying for a loan? That’s not right to deny someone if they are not a citizen but a legal resident? I can understand the need for a SSN but asking about your immigration status is insane!

[I AM NOT THAT GUY 5,715]

When you apply for a loan they ask a lot of questions, to determine your credit worthiness. I would not be surprised if that was one of the questions asked.

Edited September 26, 2009 by Lone Ranger

[Old Dominion 26]

The lenders have a right to know lots of things. There is no legal requirement for them to loan money to anyone, especially to any applicant that balks at providing requested information. In this economy, it is hard for anyone to get muc of a loan without some collateral, e.g., a car, house, an investment, etc. Even more difficult if you've been in the country such a short while.

Edited September 26, 2009 by Old Dominion

[rebeccajo 14]

Who asked you your citizenship status?

From the Federal Trade Commission website (explanation of the Equal Credit Opportunity Act) I. When You Apply For Credit, Creditors May Not...

* Discourage you from applying or reject your application because of your race, color, religion, national origin, sex, marital status, age, or because you receive public assistance.

* Consider your race, sex, or national origin, although you may be asked to disclose this information if you want to. It helps federal agencies enforce anti-discrimination laws. A creditor may consider your immigration status and whether you have the right to stay in the country long enough to repay the debt.

* Impose different terms or conditions, like a higher interest rate or higher fees, on a loan based on your race, color, religion, national origin, sex, marital status, age, or because you receive public assistance.

* Ask if you’re widowed or divorced. A creditor may use only the terms: married, unmarried, or separated.

* Ask about your marital status if you’re applying for a separate, unsecured account. A creditor may ask you to provide this information if you live in “community property” states: Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, and Wisconsin. A creditor in any state may ask for this information if you apply for a joint account or one secured by property.

* Ask for information about your spouse, except:

o if your spouse is applying with you;

o if your spouse will be allowed to use the account;

o if you are relying on your spouse’s income or on alimony or child support income from a former spouse;

o if you live in a community property state.

* Ask about your plans for having or raising children, but they can ask questions about expenses related to your dependents.

* Ask if you get alimony, child support, or separate maintenance payments, unless they tell you first that you don’t have to provide this information if you aren’t relying on these payments to get credit. A creditor may ask if you have to pay alimony, child support, or separate maintenance payments.

II. When Deciding To Grant You Credit Or When Setting The Terms Of Credit, Creditors May Not...

* Consider your race, color, religion, national origin, sex, marital status or whether you get public assistance.

* Consider your age, unless:

o you’re too young to sign contracts, generally under 18;

o you’re at least 62, and the creditor will favor you because of your age;

o it’s used to determine the meaning of other factors important to creditworthiness. For example, a creditor could use your age to determine if your income might drop because you’re about to retire;

o it’s used in a valid credit scoring system that favors applicants 62 and older. A credit scoring system assigns points to answers you give on credit applications. For example, your length of employment might be scored differently depending on your age.

* Consider whether you have a telephone account in your name. A creditor may consider whether you have a phone.

* Consider the racial composition of the neighborhood where you want to buy, refinance or improve a house with money you are borrowing.

III. When Evaluating Your Income, Creditors May Not...

* Refuse to consider reliable public assistance income the same way as other income.

* Discount income because of your sex or marital status. For example, a creditor cannot count a man’s salary at 100 percent and a woman’s at 75 percent. A creditor may not assume a woman of childbearing age will stop working to raise children.

* Discount or refuse to consider income because it comes from part-time employment, Social Security, pensions, or annuities.

* Refuse to consider reliable alimony, child support, or separate maintenance payments. A creditor may ask you for proof that you receive this income consistently.

IV. You Also Have The Right To...

* Have credit in your birth name (Mary Smith), your first and your spouse’s last name (Mary Jones), or your first name and a combined last name (Mary Smith Jones).

* Get credit without a cosigner, if you meet the creditor’s standards.

* Have a cosigner other than your spouse, if one is necessary.

* Keep your own accounts after you change your name, marital status, reach a certain age, or retire, unless the creditor has evidence that you’re not willing or able to pay.

* Know whether your application was accepted or rejected within 30 days of filing a complete application.

* Know why your application was rejected. The creditor must tell you the specific reason for the rejection or that you are entitled to learn the reason if you ask within 60 days. An acceptable reason might be: “your income was too low” or “you haven’t been employed long enough.” An unacceptable reason might be “you didn’t meet our minimum standards.” That information isn’t specific enough.

* Learn the specific reason you were offered less favorable terms than you applied for, but only if you reject these terms. For example, if the lender offers you a smaller loan or a higher interest rate, and you don’t accept the offer, you have the right to know why those terms were offered.

* Find out why your account was closed or why the terms of the account were made less favorable, unless the account was inactive or you failed to make payments as agreed.

[I AM NOT THAT GUY 5,715]

A creditor may consider your immigration status and whether you have the right to stay in the country long enough to repay the debt.

There is your answer, from RebeccaJo.

Edited September 26, 2009 by Lone Ranger

[rebeccajo 14]

A creditor may consider your immigration status and whether you have the right to stay in the country long enough to repay the debt.

There is your answer, from RebeccaJo.

So only citizens have the right to stay in the country long enough to repay the debt?

If a lender is using the optional questions at the bottom of a loan app to deny credit, they are subject to hefty fines.

[Darnell 8,478]

Didn't the Patriot Act 'allow' for this type of question? I know there's some checks at the bank for status when you OPEN a new account (Thank you Patriot Act ! ) but maybe the bank in question has 'expanded' their internal policies a bit?

[I AM NOT THAT GUY 5,715]

Banks are getting very restrictive and requiring full documentation for loans these days. I even had a line of credit "suspended" for no reason other than GMAC wanting to go back, and fully re-document the loan after a few years, despite an 800+ credit score. I think most of us have already seen our credit limits reduced.

[Nessa 23]

A creditor may consider your immigration status and whether you have the right to stay in the country long enough to repay the debt.

There is your answer, from RebeccaJo.

So only citizens have the right to stay in the country long enough to repay the debt?

If a lender is using the optional questions at the bottom of a loan app to deny credit, they are subject to hefty fines.

i think the bank is right in asking for the reasons rebecca mentioned above

[lostinblue 1,989]

I was in a HSBC bank and a person tried to exchange canadian dollars for american. They were asked if they had an account with the bank. They did not and was told to try the airport to exchange their money. Crazy

[aidan80 9]

I was shopping around for a car loan and I was asked at one place my citizenship status and I found that wrong. Ok on one hand I understand, no they wouldn't want to lend to someone on a work visa that will expire in 2 years time. On the other I felt it wrong to basically ask are you a citizen or not? That's no way to ask a question like that it's like an automatic denial for not being a citizen?

Anyway even with a decent credit score I managed to get turned down right left and center! The only place willing to offer me a loan is the place those with really bad credit go or those with no credit.. I suppose I'm one without much of a credit history so no 0% or 1.9% offer's for me. The real world says somewhere between 8% and 9% still not as terrible as it could be, it's not 17%!

[illnevergetthis 5]

If you are not a citizen, the lender will most likely ask for proof of your status. When they pull yor credit report, they will know when your social security card was issued. They need to know this information because they need to know that you will be here long enough to repay the loan.

Try not to be offended or take it personal. The lender is only trying to minimize there risk.

[Mommy2ZaidnSalma 11]

As a Bank Manager I will tell you that According to the US Patriot Act, yes, we do ask these questions when extending any business to customers whether it be a loan, checking account, CD, etc. Also, banks need to comply with Federal Regulations. I know in my location one of the biggest factors is we have a lot of Non USC from Mexico with Matriculas (they have no ss #). If the customer is doing anything regarding interest rates we must follow extra steps so they can be reported to the IRS. There are alot of instances where any financial institution would need to know this.

[aidan80 9]

If you are not a citizen, the lender will most likely ask for proof of your status. When they pull yor credit report, they will know when your social security card was issued. They need to know this information because they need to know that you will be here long enough to repay the loan.

Try not to be offended or take it personal. The lender is only trying to minimize there risk.

I really don't like banks.. I mean the type of organizations they are. Money is king to a bank yet all these banks needed all of our money to get bailed outta the hole they fell into. I understand yes they want to know if you'll be here to repay the loan that is decent enough but still wrong in a way that you're looked at different.

[aidan80 9]

As a Bank Manager I will tell you that According to the US Patriot Act, yes, we do ask these questions when extending any business to customers whether it be a loan, checking account, CD, etc. Also, banks need to comply with Federal Regulations. I know in my location one of the biggest factors is we have a lot of Non USC from Mexico with Matriculas (they have no ss #). If the customer is doing anything regarding interest rates we must follow extra steps so they can be reported to the IRS. There are alot of instances where any financial institution would need to know this.

I know you're just doing your job and following the rules. I'm just kinda annoyed at it but that's life