That is something totally new. I never heard of anyone running a credit report for an account??? Did your nephew sign something first authorizing them to run a credit report? If not, sue the piss out of them.
Credit laws are very specific and strict. No one can run a credit report on you unless you authorize them. Even if you walked into a bank and said "I want to apply for a home equity. But I want to check my credit first to see if I would be approved." Legally, you can't do it unless someone signs a loan app FIRST with the intent on getting a loan. Yes, you can go to free credit report.com and do it, but that's because you're going directly to the credit bureau.
NOW, there is a possibility the bank person had no idea what they were talking about, and ran Chexsystems instead of a credit report. What is ChexSystems you ask? Well, going against everything Benjamin Franklin said when he quoted "Those who give up their liberty for more security neither deserve liberty nor security", Chexsystems does several things. Did you ever write a check out at a store, and the person says "I need to see your drivers license"? And they write your drivers license number on the check? Well, if you've bounced checks before, they submit it to chexsystems, and keep it on record with your drivers license number. Yep, it's true. So if you went to Walmart, and wrote a $500 check out that bounced, I can see that if I run chexsystem on you.
The second thing it does, is it verifies the social security number with the date it was issued. So if you tell me you were born in 1980, and your social security number was issued in 1975, there's a problem!
Third, it tells me if you owe any other banks money. Why is that important? If you owe 3 banks money, all due to NSF activity, chances are if I open your account, we will be the 4th bank.
Fourth, it tells me if you are on an OFAC list (Office of Foreign Assets and Control). After 9/11, when they discovered all these terrorists had accounts in the US, Homeland Security came up with this list to alert banks that the person in front of you might be a terrorist. So before I open an account for "Muhammed Saleek", I need to see if his name matches anyone on the OFAC list. If it does, I won't open the account. Even if the Muhammed Saleek sitting in front of me is not the same one on the OFAC list, I will not do it until it can be verified further.
So, to sum it up, if your nephew had a credit report run on him without signing permission, he should sue the sh*t out of the bank. It's pretty much a win win case for him.
If they ran chexsystems on him, and he was declined, he needs to find out why he was declined. I did a google search for chexsystems, and found this page so you all can see what us bank folk see. Click on the sample box to see what a report looks like.
Hope this helps ya pally.
https://www.consumerdebit.com/consum...port/index.htm