Consumer complaint received 2019-06-24
Company: REGIONS FINANCIAL CORPORATION
State: TN
Product: Checking or savings account
Sub-product: Checking account
Issue: Opening an account
Sub-issue: Unable to open an account

Complaint:
I opened a checking account with Regions bank in XXXX, TN on XX/XX/XXXX for my mother 's Medicaid Qualified Income Trust, as required by the state of Tennessee. I provided the legal documents establishing the trust, again, as required by the state. 

Late on the afternoon of XX/XX/XXXX I received a phone call from the Regions employee that processed my new account paperwork and was told that " we can't open this account per our legal department ... if we make an error and charge a monthly fee we could cause the customer to lose their Medicaid benefits. We don't want that risk. '' I asked for more clarification, and was told I could come into the bank to discuss it. 

I met with the branch manager on XX/XX/XXXX who told me exactly what I had been told the day prior. I expressed my concern that the trust documentation in Article IV Section F clearly authorized the bank to collect a service charge for the administration of the account. I also pointed out that I, as Trustee, was the liable party for any errors. The branch manager maintained that their position had not changed, they would not open the account, and that the bank had NOT been opening Medicaid Qualified Income Trusts since XXXX. I expressed my concern that this policy discriminated against people receiving public assistance and that I wished to speak to someone in the legal department who could explain the rationale for this policy to me. The branch manager offered to file a complaint on my behalf, and I agreed. 

On XX/XX/XXXX I had heard nothing from Regions about the complaint that was filed and called the branch manager to follow up. 

On XX/XX/XXXX I received a call from a customer service liaison from Regions corporate who relayed to me the exact information I was given on XX/XX/XXXX and XXXX. When I pressed for more information regarding 1 ) how Regions Corporate could deny to open an account that was required by the state of Tennessee, and 2 ) how Region 's policy was not discriminatory to people on public assistance. I was told that I could not speak to the legal department, but that contact would be made with legal again with a note for them to contact me. I was informed that Regions would not open the checking account for the Medicaid Qualified Income Trust. As of this writing ( XX/XX/XXXX ) I have heard nothing from Regions. 

Regions Bank 's reason for not opening this account was that the potential for error if they charged an account fee was a risk they were not willing to take. This is at best a flimsy excuse, mainly because other banks in this area not only DO open Medicaid Qualified Income Trust accounts but they ALSO charge account fees for them. My feeling is that this policy discriminates against people who are eligible for public assistance, a fragile and vulnerable set of people who quite frankly don't deserve this treatment. 

I have asked Regions repeatedly to explain to me how their policy is not discriminatory and to date NO ONE HAS PROVIDED AN EXPLANATION.

Company public response: Company has responded to the consumer and the CFPB and chooses not to provide a public response
Company response to consumer: Closed with explanation