| |
| |
|
WebsiteAlways |
|
ChexSystems: Who They Are and How it Affects You
ChexSystems is a company that maintains a subscriber membership service used in the banking industry. The members consist mainly of Banks, and Credit Unions, but can include other types of Financial Institutions. It provides its members with what it calls deposit account verification services. The members use the information that ChexSystems provides to identify applicants that have had what they classify as a suspect banking history. ChexSystems maintains a central database containing all of the information that has been reported to them. This information is shared among the network of member banks and credit unions to assess the level of risk in opening new accounts. When someone applies to open a new checking account at a ChexSystems member bank, a ChexSystems inquiry is made. If the inquiry is returned stating that the person has had previous problems with another bank, that individual will often be denied from opening the account based on that ChexSystems report. For this reason ChexSystems is considered as a Consumer Reporting Agency. This makes ChexSystems subject to the same laws as the Credit Bureaus that we are all familiar with: Experian, Equifax, and Trans Union. And like the Credit Bureaus? ChexSystems does not approve nor decline new accounts. It only maintains, and reports, the information in their database which bank members have submitted to them. It is the individual bank who, based on the ChexSystems report, decides whether or not to approve the new account. Understandably? the majority of people in America who have the very common checking account, and never had a problem, have never heard of ChexSystems. But for the nearly 8 million people that ChexSystems has on file it is a very real problem. Many people feel ChexSystems has very quietly become the big brother of the banking industry. ChexSystems is a very necessary service for banks. On average financial institutions are hit with over $1 billion in check fraud losses a year. And they spend more than $200 million to prevent, detect, and prosecute check fraud. The criticism has been that there are no established guidelines for exactly who gets reported to ChexSystems. It is entirely up to the individual member banks. There are no procedures to distinguish between the person who may have had one or two unintentional incidents of bank overdrafts? and the individual who truly committed a serious act of fraud like passing numerous checks on a closed account. Depending on a particular bank's internal policies, a person could have their account closed and reported to ChexSystems for as little as one bounced check. Once in ChexSystems they are treated all the same, and the record can remain for 5 years. Bank executives defend the ChexSystems database as a valuable weapon in the battle against fraud and high-risk customers. To help prevent fraud and account abuse, banks and other financial institutions rely on the information from ChexSystems. They say it helps to keep banking services affordable and widely available to the general public. ChexSystems is also licensed as a debt collection agency. They have a separate department that assist participating members to collect on outsanding accounts. This also makes them subject to the Fair Debt Collection Practices Act (FDCPA) While ChexSystems is the most widely used database by the banking industry, other similar systems exist, such as TeleCheck, and National Check Protection & Data Verification Services. If you have recently been denied from opening a checking account due to a negative ChexSystems report, you are entitled to a free copy of that report. To contact ChexSystems by mail: ChexSystems, Inc. Attn: Consumer Relations 7805 Hudson Road, Suite 100 Woodbury, MN 55125 Phone: 800-428-9623 or fax at 602-659-2197 Greg Ford is the owner and webmaster of http://www.chexsystemssolutions.com Additional information regarding options for people in ChexSystems can be found there.
MORE RESOURCES:
Credit - Google News |
|
|
|
RELATED ARTICLES
Debit Card vs. Credit Card, What Are The Differences ? Ah, the "good old days". If you are a baby boomer, like me, then you probably remember how important it was to rush to the bank on payday. Dont Fall for Credit Repair Scams We've all seen the ads on television or in magazines, shouting, "Erase bad debt!" or "Remove negative entries from your credit report!" If you're a person suffering from a less-than-stellar credit rating, those headlines may seem like the answer to a prayer.The only problems is, those programs don't work, and to add insult to injury, you'll find yourself paying hefty fees to those companies, only to end up right where you started, or worse. It Is In Your Best Interest To Do The Math On Your Credit Card Interest If you begin foaming at the mouth once a month when you receive your credit card statement, join the millions of Americans that are foaming along with you. There is a growing outrage at the seemingly endless journey towards eliminating the balance on your credit card and that is due primarily to the extravagant interest rates charged by credit card companies. Big Brother Knows Whats in Your Credit Report - How About You? Whether you are aware of it or not, credit bureaus have been keeping tabs on you and how you use credit. When it's time for you to apply for a mortgage, credit card, or personal loan, your credit report is what lenders look at to decide to approve you or not. Understanding Your Rights Under The Equal Credit Opportunity Act It wasn't all that long ago that lenders blatantly discriminated when it came to approving credit for women and minority groups. Women were actually asked personal and demeaning questions like, how many children do you plan to have in the future or are you on birth control?Despite the fact that they were entering the workforce in record numbers, single women were often required to get a cosigner or denied credit altogether. Which Business Credit Cards with Reward are the Best? Thinking of applying for a credit card with a reward program to help you and your business? Here is a brief guide to some of the best programs on the internet.The Platinum Business Credit Card with rewards from American Express is a great offer. Figuring Out the Ever Nebulous Numbers Called Credit Scores Credit Score FactorsThe information contained on our credit reports affect every aspect of our lives; including employment, insurance, and even interest rates (mortgage, credit cards, automobiles, etc.). How To Choose Your Credit Card Application The articles and tips provided on this site are intended to help you access credit card offers that suit your lifestyle. By providing you with some basic information, we are confident that you will be able to easily identify which are the best credit cards for you. How To Eliminate Credit Card Debt There is almost nothing more troublesome than having too much debt to pay each month. Consumers incur debt for many different reasons. Choosing a Credit Counseling Company If you have considered credit counseling as an option to your financial problems, then you are probably wondering how to choose from one of the many credit counseling companies that are popping up left and right these days. There really is not an easy answer to this dilemma but there are some things that you can look for in a credit counseling company that might make the decision a little easier. Bankruptcy Myths Busted The average American knows very little about bankruptcy. Most people probably are aware of bankruptcy's ability to dissolve debt and give the debtor a fresh start. Credit Card Debt: One Way To Avoid It One of the biggest problems people have in these modern times is Credit card debt, and worst is USA. Simply because there have always been so many laws and regulations before you could have a card in the rest of the world, you can't for instance borrow someone elses card and go shopping because you always have to show some ID before they accept cards in Europe. What is Credit Counselling? Ever wondered what is Credit Counselling? There are occasions when you might encounter a financial situation that is beyond your scope which is when a session with a credit counsellor could be beneficial.If you're not disciplined enough to create a workable budget and stick to it, can't work out a repayment plan with your creditors, or can't keep track of mounting bills, consider contacting a credit counselling organisation. Know Your Credit Card Rights When you apply for a credit card, the application that you sign is also a legally binding contract laying out all the termsbetween you and the bank, such as the interest rate and how its calculated, the grace period, whether there's an annual fee, etc.While you have to agree to the terms and sign if you want the credit card and while the lender will certainly hold you to the terms, the lender doesn't feel similarly committed. 7 Consumer Credit Laws You Should Know if You are Trying to Repair Your Credit There are seven consumer credit laws you should be aware when dealing with your credit.1. Are you paying higher interest on your credit cards than you think? Many credit card holders sign up for a credit account with an 8.9% interest rate and then later realize that their interest rate has been bumped to 27. Its Your Credit - Take Care of It! Thanks to the Fair and Accurate Credit Act, American consumers can receive a free annual credit report from each of the three major credit bureaus-Experian, TransUnion and Equifax. You can order your free credit report by visiting www. Beware of Falling Minimum Payments If you opened a credit card statement recently and were pleasantly surprised to find that your minimum payment due was lowered, don't be so quick to "jump for joy". What may appear as a small boost to your monthly budget is actually the rock that can weigh you down in debt for a lifetime. New Law Provides Free Annual Credit Report As of Thursday, December 1, 2004, one-third of Americans will be able to access their credit reports from all three main agencies for free. Passed in late 2003, the Fair & Accurate Credit Transactions Act creates a central source consumers can use to obtain a free annual credit report. What Are the Most Common Ways to Commit Identity Theft or Fraud? It's the number one source of consumer complaints at the Federal Trade Commission (FTC), and unfortunately, it's one of the simplest crimes to commit. Identity theft involves information from your daily life, from shopping, bill-paying, and even applying for a job.
|
| Interesting articles | Home | site map | Link |
| © 2006 |
