Consumer complaint received 2016-02-23
Company: STATE FARM BANK, FSB
State: MI
Product: Bank account or service
Sub-product: Other bank product/service
Issue: Account opening, closing, or management

Complaint:
On Monday afternoon, XXXX XXXX, 2016, I telephoned State Farm Bank ( FDIC insured ) to open a traditional IRA account over the phone. ( State Farm Bank advertised its rates CD rates on the internet ). I spoke with a customer service rep who said he was an IRA specialist. I explained that I wanted to transfer funds from an already existing traditional IRA at a different bank, and would also be making a 2016 contribution to the new State Farm Bank IRA account. The service rep said that he would help me open the IRA account. He said that he would be filling out the application form on the phone and would be asking me a series of questions. During the next 30 minutes, I was asked the standard questions ( e.g., name, address, ss #, date of birth, type of IRA, dollar amount I would be contributing, tax withholding status, beneficiary info, whether to mail a check or have the current IRA trustee transfer the funds, etc. ). At the very end of the application process, I was told that the State Farm Bank service rep would be choosing a local State Farm insurance agent whose name would be added to my IRA account as my insurance agent contact. I objected to having a stranger 's name listed as part of my IRA account. I said that I did not want any insurance agent 's name noted on my account, my application, my bank records, or my application form. I asked why he wanted to put a local State Farm insurance agent on my bank records, and he said that it was for marketing and sales purposes to advise me of the State Farm 's products. I told him I already had insurance, had my own insurance agent, did n't want any solicitations from State Farm, and said that I was declining have a local State Farm insurance agent 's name listed as contact for my IRA account. The State Farm Bank service rep stated that he could not complete my IRA application form and State Farm Bank, as a matter of policy, could not open a bank account for me without having their insurance agent 's name indicated on the records of my bank account. I said that there were no federal banking laws that required me to have the name of an insurance agent noted on my IRA account. He replied that without a State Farm insurance agent listed on my IRA account records, I would not be allowed to open a bank account at State Farm Bank. He stated that it was bank policy to require this, and that the requirement to have their local insurance agent listed on my IRA account records complied with all federal laws. I asked him to bring his supervisor into the conversation so that I could " opt out '' of this requirement. I explained that a bank account had the customer 's personal and private identifying information along with confidential financial information. I did not want an insurance agent to have access to this information, and I had a right to privacy. The supervisor reiterated to the service rep that unless I allowed the local State Farm insurance agent 's name to be placed on my account as my contact for the account, State Farm Bank would have to refuse to open the bank account for me. 
The service rep promised that he would add the words " no soliciting '' to my record. I told him that this was not acceptable, that I did not want the names of any local insurance agents listed on my bank account records. The State Farm Bank service rep refused to open an IRA account at the bank without my being assigned a local State Farm insurance agent by the bank to be listed on my bank account records. I was told repeatedly that I would not be allowed to open an account at the bank. I did not agree to have a local State Farm insurance agent assigned to my IRA bank account, so I was rejected as a customer - not allowed to open a bank account -- solely for this reason. 

Please continue to the desired resolution and remedies section.

Company response to consumer: Closed with non-monetary relief