Chase bank - new questionnaire

Identifyasgrumpy

I have been using Chase for sometime and recently they have been requesting additional information which I do not see as relevant to the products I have taken out with them. Specifically they are demanding salary information. 

Should I be concerned as it appears like I am having an unauthorised credit check performed on me presumably so they can use the information for marketing purposes.

I am also concerned from an ID theft point of view as this information could be used to secure debt against my name.

They are also going to start restricting transactions if I do not comply by day 60...is this legal?

Am I being overly concerned or are Chase taking liberties with their customers?

NorwichMan

I think most or all banks do this to customers as part of KYC (know your customer) regulation, it seems normal these days. You have the choice of giving them your info or having the restrictions. 

Ayr_Rage

Identifyasgrumpy said:

I have been using Chase for sometime and recently they have been requesting additional information which I do not see as relevant to the products I have taken out with them. Specifically they are demanding salary information. 

Should I be concerned as it appears like I am having an unauthorised credit check performed on me presumably so they can use the information for marketing purposes.

I am also concerned from an ID theft point of view as this information could be used to secure debt against my name.

They are also going to start restricting transactions if I do not comply by day 60...is this legal?

Am I being overly concerned or are Chase taking liberties with their customers?

Don't presume anything!

You are being overly concerned, if you don't like it then vote with your digits and click elsewhere.

AML and KYC is becoming more intrusive but should also protect you as a customer.

Identifyasgrumpy

Ayr_Rage, reason for me concerns is they are threatening to restrict all monetary movements on my accounts unless I give the information by a certain date, information which is not requested by any other major banks I use.

Please also explain AML and KYC I'm not familiar with these abbreviations, thanks 

Ayr_Rage

KYC already answered by @NorwichMan above.

AML = anti money laundering

DullGreyGuy

Identifyasgrumpy said:

Ayr_Rage, reason for me concerns is they are threatening to restrict all monetary movements on my accounts unless I give the information by a certain date, information which is not requested by any other major banks I use.

Please also explain AML and KYC I'm not familiar with these abbreviations, thanks 

Banks have been hit by massive fines in recent years for insufficient checks over who customers are, where money is going to/coming from, what customers are doing with their tools. JP Chase Morgan had a $350m fine in the US earlier this year, Natwest was fined £265m for AML failings in 2021, BNP fined $8,793 for AML failings

It's little surprise that we are seeing banks increase their checks... was about 2 years ago that HSBC re did its KYC checks on absolutely every business customer it has. Non-compliance with the process will result in the account being locked and ultimately closed, your not valuable enough as a customer for them to risks millions or billions in fines.

You can vote with your feet and move to another bank but inevitably they are likely to be asking similar things either for your to open an account or at some point in the future. 

born_again

Identifyasgrumpy said:

Ayr_Rage, reason for me concerns is they are threatening to restrict all monetary movements on my accounts unless I give the information by a certain date, information which is not requested by any other major banks I use.nt will be closed.

Please also explain AML and KYC I'm not familiar with these abbreviations, thanks 

If customer are not proving the requested information. Then this is the 1st part of making sure they get it. Next will be a warning that the account will be closed. 

All banks can & will request this info. Just because they have not picked it up on your accounts, does not mean that they will not in the future.

Ballard

Your question has already been amply answered, but KYC is all about banks knowing you, as a customer. Banks sometimes have differing interpretations of the rules but something like getting an update on your salary makes sense as they’ll need to be reasonably confident that funds moving through your account are legitimate.

Jami74

I've had to do this on a few of my accounts now. Did it for Vanguard yesterday. Nothing bad has happened. I rounded figure for salary and picked loosely relevant answers to the other questions. I guess they just add it to the information they already hold like address and date of birth.

Identifyasgrumpy

This is chase response to my indication that I will exit, this was one of my concerns that they will use the information to push products to me.

"I know that it's very concerning for you to provide the details we asks. Please know that I would feel the same in your situation. Once again, my apologies if you're not comfortable providing the information that we need. This is just a clarification, Chase UK asks for your income to assess your financial situation and determine if you're eligible for financial credit. This information is also used to:

Verify your identity Keep your account safe Detect unusual activity on your account Help credit reference agencies (CRAs) build a more complete picture of your finances Help lenders make decisions about whether to lend to you, and how much Evaluate your account for future needs and special offers Help you potentially receive higher credit limits or promotional offer Please know that knowing a customer's income level allows Chase to tailor financial products and promotional offers that are most suitable for their needs."

I understand the need and am happy to provide information when relevant but as I have not applied for any credit with them and have not been asked by the other banks including those which I have applied for savings in the last few weeks.

It seems that they are using this as a vehicle to gain commercially useful information, basically this doesn't pass the sniff test for me.

400ixl

It doesn't pass YOUR sniff test, which is of course your right.

Its a simple choice for you really, comply and have all of the account features, don't and have any restrictions applied or vote with your feet and bank elsewhere.

Nothing they are doing is illegal and you aren't going to change their processes.