Consumer complaint received 2025-02-04 00:00:00
Product: Credit card — General-purpose credit card or charge card
Issue: Getting a credit card — Application denied
Company: REGIONS FINANCIAL CORPORATION
State: TX

Complaint narrative:
Complaint Letter to CFPB Against Regions Bank XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXXXXXX XXXX, TX, XXXX XXXX XXXX Consumer Financial Protection Bureau ( CFPB ) XXXX XXXX XXXX XXXX, IA XXXX Subject : Formal Complaint Against Regions Bank for Unlawful Denial of Credit Application To Whom It May Concern, I am filing this formal complaint against Regions Bank for unlawful and deceptive credit practices in violation of the Equal Credit Opportunity Act ( ECOA - 15 U.S.C. 1691 ), the Fair Credit Reporting Act ( FCRA - 15 U.S.C. 1681 ), and the Truth in Lending Act ( TILA - 15 U.S.C. 1631 & Regulation Z ( 12 CFR 1026 ) ). 

XXXX. Background of the Complaint On XXXX, I submitted a credit application to Regions Bank for REGIONS VISA PERSONAL CREDIT CARD LIFE/PRESTIGE/PREMIUM/CASH REWARDS. The application included the stated Annual Percentage Rate ( APR ), fees, and finance charges in accordance with TILA regulations. I reviewed the terms, signed the application, and submitted it for approval. 

Regions Bank then conducted a hard inquiry on my credit report, which constitutes a legally binding step under FCRA and TILA. However, after running my credit, they wrongfully denied my application which is an improper basis for denial at this stage.

2. Legal Violations by Regions Bank a. Unlawful Denial After Pre-Approval Violation of ECOA & TILA Under ECOA ( 15 U.S.C. 1691 ( d ) ), once a creditor issues terms and allows the consumer to sign an application, they have conditionally approved the credit, pending only identity and fraud verification.

If the creditor denies after listing APR, fees, and finance charges, they may only do so for identity mismatches, fraud concerns, or legal ineligibility ( e.g., underage applicants, OFAC watchlist, incorrect SSN ).

Denying me based on my credit score, debt-to-income ratio, or recent inquiries AFTER providing pre-disclosed terms constitutes an unlawful revocation of an approval, violating TILA ( 15 U.S.C. 1631 ) and Regulation Z ( 12 CFR 1026.6 ).

b. Improper Use of Credit Report Violation of FCRA ( 15 U.S.C. 1681b ) Regions Bank accessed my credit report under the pretense of approval, but then used information from the report ( e.g., low credit score or existing debt ) to retroactively deny my application.

FCRA requires that a hard inquiry only be conducted when there is a permissible purpose, such as extending credit. If the application contained pre-disclosed terms and was signed, Regions Bank had already committed to extending credit, meaning they can not legally deny it based on creditworthiness after the fact.

c. Failure to Provide a Proper Adverse Action Notice Violation of ECOA & FCRA ECOA ( 15 U.S.C. 1691 ( d ) ( 2 ) ) requires lenders to provide a specific reason for any denial.

If Regions Bank cited a vague or incorrect reason ( e.g., too many recent inquiries or insufficient credit history ) instead of an actual legal basis ( e.g., identity mismatch or fraud concerns ), this constitutes a failure to comply with federal adverse action notice requirements.

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