What requirements do banks have to let you know why your account app was denied?

Applied for a T-Mobile 1% checking account and was denied. Message says, You are currently unable to open a T-Mobile MONEY Checking Account. This was determined based on proprietary information provided from public and private databases. Multiple attempts may not change the outcome. Thank you for your interest in T-Mobile MONEY. Credit is excellent so not that. Don’t they have to let you know why? Doesn’t this cover up all kinds of discrimination?

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Well, if your credit is OK it’s possible ChexSystems took you down. They have messed me up more than once. They are the worst.

Course if your credit were bad then it would be no surprise you ran into a hurdle trying to open a checking account. But based on your post that’s not it.

I don’t think you’re entitled to know why you were rejected. You are entitled to a free copy of your ChexSystems report, upon request.


When I called, they said they have no access to let me know why.

They’re not required to either. Only to provide you with your credit report (for loans, credit card accounts) or ChexSystem or whatever else they check for checking/savings accounts. The idea there was to make you aware of what information it’s based on and give you an opportunity to check that there are no errors on the report, not really explain the decision.

And even if they told you why (which they won’t if only so that people don’t know how to game the system more than they already do), all you could do is pound sand.

I had the same situation with a Capital One credit card application about 5 years ago. 830+ credit score, no card with them, and all they could tell me was ask me whether I wanted to get a copy of the credit report they pulled, not even what on the report made them reject the application. Sometimes it’s just proprietary/arbitrary evaluation that you’re unlikely to be profitable.

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ChexSystem or whatever else they check for checking/savings accounts.

Wouldn’t even give me that. Surprised no discrimination lawyers have taken this on. What’s to prevent them from automatically denying people with names like Tyrone, Jamal, Ebony, Jose, Carlos, Isabella, etc. Nobody would know.

Federally, the civil Rights Act of 1964 prevents them from discriminating against you based on color, race, religion, sex, or country of origin. Barring different state laws, except for sex, I don’t think any of the other protected classes appear on your typical application so it’d be very hard to prove anything.

Since the law does not force them to disclose why you were denied, they’d be idiotic to willingly provide such information and open themselves to both discrimination lawsuits, to people gaming the system by knowing what answers will help them get approved even though the bank may not want them as unprofitable customers, but also give out their secret sauce to other banks on how they select customers for profitability.


That doesn’t sound right. I think they are required to provide you with a free copy of the ChexSystems report. You’re entitled to one once per year and each time you are denied.

Keep in mind that federal law requires banks or credit unions to tell you why you were denied for a bank account, so make sure you get that information.

There’s also this

If your ChexSystems report has been used against you, you have the right to know. For example, if you apply to open a new bank account, and the bank rejects you because of bad information that was listed in your ChexSystems report, the bank is required to inform you

(Chexsys was the subject in that FAQ, but there isnt anything special about them - any report/database that was used must be disclosed)


It says their decision was based on proprietary information, not on a credit report if I understand it correctly.

My advice to you - do business with banks and financial companies that want your business.

I know that often goes against the grain of being a cheapskate or a fragile dealer. However, after dealing with two cases of fraud over the last month, I want a financial institution that has my back first and foremost. Sign up bonuses and credit card perks are nice, but it’s also nice to get fraudulent charges wiped without having to go to a government regulator, or wait 3.5 weeks for a replacement card.


Do you have a T-mobile phone?

Also, have you opened a lot of deposit accounts recently?

I’m curious about why they might have denied you.

And it’s an account worth getting - nothing beats it for FDIC interest bearing checking.


No and no.

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I don’t know that this is a fact.

What he really need to do is look at the arbitration clause in the account terms, and follow the instructions as far as notifying them of his intent to arbitrate. After waiting 30 days, of course, since they have 30 days to provide the reasons for denial.


Just my opinion…

So if a bank uses ChexSystems or credit report and denies you then they have to provide you the information in your file so you can verify its accuracy. This is the law.
But if Tmobile uses “proprietary” information then they dont’ have to do anything or tell you anything…

Sounds like BS to me. Might be a good case for a decent lawyer to challenge Tmobile here.

Is Tmobile collecting files about everyone? If so then why dont’ they also have to provide you a copy of the file?
If they’re not collecting files then how are they denying you?

Companies can’t just say “proprietary” and do whatever they want.

Maybe Tmobiles well in their rights to do this legally but it just smells fishy to me. I don’t see how simply replacing ChexSystems with “proprietary” internal system means they don’t have to do anything should be ok.

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Well, thing is . . .

OP has already stated no problem with credit.

I suspected ChexSystems from the jump. It’s a deplorable outfit that has screwed me over more than once and cost me money. I hate 'em. Nevertheless:

Bad as they are, ChexSystems makes obtaining a copy of your report with them easy as pie. It’s a no brainer. If OP were serious about determining denial cause, OP would already have made that request to ChexSystems. And after you receive your ChexSystems report they even have a toll-free number in case you have questions.

I suspect ChexSystems has harmed many people, not just me. But they do not do so in secret. It’s almost as if ChexSystems enjoys letting people know how they have messed up their lives.


Yeah, when it wasn’t related to a credit report this was my first thought. A fake you has a bad reputation with T-mobile.


But the squeeze is the fact they’re required to tell you if chexsys was used. Its not on OP to chase down where he thinks they might’ve used. Its a pretty open and shut civil rights violation (with statutory damages), assuming it applies to bank accounts like it does to credit accounts (which prior links say it does).


BTW, I should mention that T-Mo isn’t a bank - this account is actually operated by BMT Technologies and accounts are provided by Customers Bank.

This is just a fintech masquerading as the banking arm of a wireless company. If you go ahead and file a complaint, aim it at BMT. Beyond the branding, T-Mobile has little to do with the decision to decline you.


I have empty accounts at Customers bank but this T-Mobile account has double the interest rate.