Is a bank allowed to offer some services to some customers and not to others?
Posted by admin in Finance Friday, 11 November 2011 03:39 6 Comments
My bank offers some services to some customers, but doesn’t make it available for all (we pay the SAME rate). Is this allowed?
It depends, some special services may be offered to customers who keep high balances. Bottom line it’s a private institution and you’re free to take your money elsewhere.
yes
yes
Yes. Unless they’re offering different services based on your race, sex, or other discrimination that is illegal.
All the new customers get a toaster: OK. All the high-balance customers get free checks: OK. All the high credit score customers get special treatment: OK.
All the men get higher interest rates: illegal.
Yes, depending on the services. Students and seniors for instance get some incentives like free checking to have accounts. People that have multiple accounts also get extras.
The rate you pay makes little difference. If they have a different account or different mortgage or different card type, then they can offer different services. They may maintain a higher balance, or have been a customer longer. Or perhaps they enrolled when the special was going on and you didn’t.
There are any number of reasons, most of them legal. The only illegal reason would be if they are offering them different rates because they are a certain race or creed or nationality.