Can a bank ask citizenship status?

[Trompe le Monde 1,107]

It's relevant because they can't chase you for the money if you leave the country.

incidentally the US is unique in asking this - my visa/citizenship status was asked when I applied for a mortgage in the UK when I lived there and I was asked to provide proof

[Mommy2ZaidnSalma 11]

Aidan, I understand, Ill let u know that the bank I work for actually gave the government (TARP) money back, we didnt want it.

[I AM NOT THAT GUY 5,715]

Don't worry, or maybe you should. Even when you become a citizen, the banks can be buggers to deak with. Wait until you have the pleasure of buying a home someday.

[rebeccajo 14]

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.

Not knocking you or the institution you work for, but there are about a zillion documented cases of banks misinterpreting the Patriot Act.

[zqt3344 21]

Yes they can ask your resident status or citizenship status before granting a loan, why not? Perfectly legal and smart sound business lending. Expect it, due to the Patriot Act.

[zqt3344 21]

You do not get it, The PATRIOT ACT exempted a lot of this stuff that you liberals so dearly cling to and it is a law now for these lending institutions or any financial institution to verify citizenship information now before conducting a financial transaction, and yes we have to verify citizenship by law now.

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.

[G&R 0]

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.

WORD!

[Jamaican JNR 2]

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!

Yes, they can ask that question to determine appropriate actions to take. They can not deny you however because of your country of birth, color of skin etc.

[Nizzy 1]

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

The reason for that is: if the canadian money were to turn out to be counterfeit than they have no way to get their money back. If the individual had an account, there would be a way to track them down.

[Brother Hesekiel 2,236]

One quick piece of advice: even if you don't like their question whether or not you are a US citizen: never, ever tell anybody you are. A loan paper with your statement of being a USC can do you much harm.

[aidan80 9]

To be honest here I detest banks, it makes me sick having to deal with these people. I understand the people working there are doing a job and everything else and I've nothing against them at all.. it's the people further up the latter. The faceless halfwits that drive these organizations into the ground then walk away with millions that put the knife into the back of the average man/woman on the street that actually work for their money. Right now I'd like to buy a car which someday will lead me to buy a house and to do that it's an unfortunate truth that I'll have to deal with these leaches. The best I can do is try to keep them from sucking too much blood out of me while I'm doing business with them.

Edited October 1, 2009 by aidan80

[luckytxn 2,264]

Guess some think they shouldn't ask relevant questions at all and just give a loan to anyone.