'Moral issues' lead banks to refuse porn stars bank accounts and loans

  • Porn stars are being turned away by banks because of 'moral issues'
  • Several  adult entertainment stars have been rejected by major banks
  • Lawsuit will now decide whether such decisions are discriminatory
  • Adult entertainment industry worth $14 billion a year

By James Daniel

PUBLISHED: 10:13 EST, 18 May 2013 | UPDATED: 10:48 EST, 18 May 2013


Being a porn star might not meet the approval of everyone you meet but you might think your bank manager would be one person who wouldn't have cause to complain.

Adult film actress Chanel Preston has starred in close to 150 porn flicks and is well compensated for her time, but now it appears she is having trouble keeping a bank account.

Preston recently opened a business account with City National Bank in Los Angeles, the so-called 'bank to the stars', but when she went to deposit checks into the account days later, she was told it had been shut down, due to 'compliance issues'.

Shutdown: Adult film actress Chanel Preston had her business bank account closed because of 'compliance issues'

Shutdown: Adult film actress Chanel Preston had her business bank account closed because of 'compliance issues'

Bank of the Stars: But not porn stars... City National Bank told Chanel Preston they were concerned about her sexy webcams on her website

Bank of the Stars: But not porn stars... City National Bank told Chanel Preston they were concerned about her sexy webcams on her website

Upon asking the manager who originally helped to open the account she asked what had happened.

He told her that the bank was worried about the raunchy and explicit webcam shows that appeared on her site and had closed the business account.

 

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The actress says she has previously been turned down for loans because of her profession, which may be controversial, but is certainly legal.

Although the bank did not specifically state it was because of Preston's association with pornography it appears she is not the only porn star who is facing difficulties with the banking industry.

Cash in hand: Porn stars might be better off keeping the cash under their mattresses as banks deny them the opportunity to open accounts or apply for loans

Cash in hand: Porn stars might be better off keeping the cash under their mattresses as banks deny them the opportunity to open accounts or apply for loans

A number of popular adult entertainment stars have admitted that they have also been denied the option of opening bank accounts.

Earlier this week, Marc Greenberg, founder of the soft porn studio MRG Entertainment, filed suit against JPMorgan Chase in Los Angeles Superior Court, alleging the bank violated fair lending laws and its own policy for refusing to underwrite a loan for 'moral reasons'.

Greenberg told NBC he was approached by a representative of the bank about refinancing an existing loan but the process was beset with delays.

It wasn't until he reached out to one of JPMorgan Vice-President's before he got an answer.

Greenberg found that his loan application was refused due to 'moral reasons, because of JPMorgan's disapproval of plaintiff's former source of income and occupation as an owner of a television production company that produced television programs that dealt with the subject of human sexuality.'

Singled out: Adult film actresses Chanel Preston, Allie Haze and Selena Rose at an award ceremony - A number of popular adult entertainment stars say they have been denied the option of opening bank accounts

Singled out: Adult film actresses Chanel Preston, Allie Haze and Selena Rose at an award ceremony - A number of popular adult entertainment stars say they have been denied the option of opening bank accounts

Greenberg says the rejection is even more confusing since Chase bank already held the original deed on his home.

Chase declined to comment on the accusations due to the pending litigation.

Chanel Preston has had a similar experience. She was also denied a loan because of her profession.

Rejected: Chanel Preston has been denied a loan and a bank account because of her associations with the porn industry

Rejected: Chanel Preston has been denied a loan and a bank account because of her associations with the porn industry

When filling out an application she was asked by a loan officer: 'are you affiliated with the adult entertainment industry?'

'When I said yes, she said 'We will not give you a loan.' Preston recalled.

The courts will have to decide whether such denials of financing is discriminatory lending.

However, financial institutions are within their rights to decide who they will and won't lend money to and it is not uncommon for many businesses to take a moral stand about who they do business with.

Porn stars and adult entertainment industry insiders say the trouble occurs when dealing with business-based accounts.

Often, personal accounts are opened under their real names don't necessarily raise a red flag.

It's only business that is completed under more well-known pseudonyms, when the problems begin to occur and bank employees take notice.

Instances of banks taking the 'moral high ground' are likely to become more common as more people run business (including porn-related websites) from their own home.

The $14 billion adult entertainment industry is undergoing a transformation and it's a question of whether the banks feel they can afford to go without a slice of the cash.

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Deposits and early withdrawals seem to take a different meaning.

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Banks taking the ¿moral high ground¿? What a cruel joke. These bankers ought to look at their own unethical lending practices before trying to pass any judgment on potential customers. Wake up people, do not patronize corporations that do not appreciate your business. It is their loss.

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What hypocrites, dodgy businessmen. mafiaso members with no visible means of support, late term abortionists, politicians, evangelcal preachers all welcome

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I call BS on this story. My bank hasn't a clue what I do for a living, nor do they care!!

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Moral issues? And Banks? Thats a good one.....Banks wouldn't know a moral issue if one were to bite them in the nose.

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Why are they telling the banks what they do for a living anyway? Why can't they just say Contractor, Policeman, or Politician?

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Really these women (and men) literally earn their pay in their back and a bank is turning away clients due to moral issues, whatever. Banks have no moral issues when they foreclose on a family struggling to pay their mortgage. Are they supposed to hold a part time job at Mc Donalds in order to have a bank account? Are you supposed to cash your checks in a seedy check cashing place that has insane percentage rates on cashing checks. Last time I checked we lived in America, not in a Communist dictatorship.

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It may be better not to put all the money in banks at least not above the levels guaranteed by the government in the event the bank fails. The US banks are heavily in debt due to casino style derivative gambling and details can be found by looking online for: 'demonocracy.info'.

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But if you are a drug dealer we will launder your money and if you are a honest working person we will steal it from you. Banks being moral that's a joke.

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Banks sitting in moral judgement of others is beyond a joke.

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