First World Kvetch!

As I said, I still feel this one. Every day ... and I've never been able to put it right. I even have house-plan sketches, downloaded on my computer, for a house almost identical to the one I sold. No lie - I even had a dream a few years ago. In it, my old house had travelled 45 miles down the highway, on a couple of big flatbed trucks, to see me.

House: "Hey John, I came to see how you're doing. You sold me and that's fine - I did OK and I don't think you ever liked me. I was worried about you, though. I heard you had to spend all that money..."

Me: "Oh, that's OK. I've got it all back now, and then some."

House: "Glad to hear it. So we're good, then?"

Me: "For sure. More than good. Forever. You were a great house - and I'm sorry I failed to appreciate you."

House: "Don't give it another thought. It's OK. Now I should get back. Otherwise, they'll be missing me in Welland."

Me: "Thanks for coming down. And I'm glad things worked out for you."

 

In the USA, many businesses with nothing to do with credit will link your FICO score to the price you pay for their services--or whether they do business with you at all. Rates paid for auto insurance in some states, for example will vary based on the FICO score. Banks can use it to decide whether to allow you to have a checking or savings account with them, and if you borrow from them, your FICO score will be a major determinant of the interest rates you pay. Miscellaneous corporations can use it as part of their hiring decision.

So in the USA, if you have no, or a low, FICO score, you're already at an economic disadvantage. That's why there's an obsession in the States with that 3-digit number that just doesn't exist elsewhere.

 

In Canada, banks must have a reason to refuse a person outright.
From Canada.ca

"A bank may refuse to open a personal bank account for you if:

• they have reasonable grounds to believe you plan to use the account for illegal or fraudulent purposes
• you’ve had a history of illegal or fraudulent activity with financial service providers in the last 7 years
• they have reasonable grounds to believe you knowingly made false statements in the information you gave
• they have reasonable grounds to believe it’s necessary to protect their customers or employees from physical harm, harassment, or other abuse
• the branch or point of service only offers accounts linked to an existing account with another financial institution and you don’t have one
• you don’t allow them to take steps to verify that the identification you presented is valid

If a bank refuses to open a personal bank account for you, they must inform you in writing.

They must also disclose to you:

• their procedure for dealing with complaints
• the name of the external complaints body (ECB) of which they’re a member and how to contact that ECB
• the Financial Consumer Agency of Canada’s mailing address, website address and telephone number"

I'm pretty sure the bank can also refuse to open a chequing account if they feel someone is high risk - bad credit etc. and offer a non-chequing instead. Many working people - and others dependent on Government support, welfare, pensions etc. need a bank account of some sort for their income cheques. Pretty few cheques are mailed now and I'm sure the Government and Canadian businesses would like to stop that process completely. I don't blame them. The Post Office is one of our National Nightmares.

 

State Bar Examiners want a credit check these days too.

 

I went to law school in 2001 and we were told back then that state bar examiners considered credit history as a way to determine if a new lawyer would be susceptible to bribery.

 

We have the same or similar bank rules in the USA, including the requirement to provide a reason in writing why an account was refused.

A person with no FICO score can be turned away by banks--which is one reason there are so many unbanked people in the USA. They are typically employed, but have to use expensive check-cashing services (that may charge a fee of up to 10 to 20 percent for the check) to get access to their cash--and the check-cashing service tacks on another charge to accept payments for utility bills in cash. Such individuals may be completely responsible when it comes to how they handle their finances, but with many banks, the rule is, no FICO, no go. (Some banks participate in programs to construct a FICO score using evidence of bill payment history, using utility bill receipts and rental receipts in lieu of credit card and mortgage reporting.)

 

Wish I'd bought some FICO stock back in the day. Current quote $1,235. The company I worked for had recently implemented FICO behavioral scoring, when I retired in the early 90s. I have no excuse. I can't say I didn't know about them....

 

Bribery? Hunh. No one ever offered!