ChexSystems: Difference between revisions
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== Common ChexSystems Uses == |
== Common ChexSystems Uses == |
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Many commercial [[bank]]s and [[credit unions]] in the United States use ChexSystems as a step in approving the application for a consumer who wishes to open a checking or savings account. Commonly, the database kept by ChexSystems will show whether or not a consumer has had numerous overdrafts or an unsatisifed balance with another bank. The information in this database is often a primary factor in the approval or denial of an application for a checking account. In 1999, ChexSystems was successfully deemed a consumer reporting agency, and therefore, governed by the [[Fair Credit Reporting Act]]. Consumers are now able to retrieve a free annual report from ChexSystems and allowed to dispute transactions and demand proof of any negative information reported. |
Many commercial [[bank]]s and [[credit unions]] in the United States use ChexSystems as a step in approving the application for a consumer who wishes to open a checking or savings account. Commonly, the database kept by ChexSystems will show whether or not a consumer has had numerous overdrafts or an unsatisifed balance with another bank. The information in this database is often a primary factor in the approval or denial of an application for a checking account. In 1999, ChexSystems was successfully deemed a consumer reporting agency, and therefore, governed by the [[Fair Credit Reporting Act]]. Consumers are now able to retrieve a free annual report from ChexSystems and allowed to dispute transactions and demand proof of any negative information reported. |
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== Chexsystems Controversy == |
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Many customers have complained about Chexsystems unfair reporting. |
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Chexsystems does not require any proof of debt and goes by word of mouth of a bank employee. |
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== External links == |
== External links == |
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Revision as of 02:53, 15 January 2007
ChexSystems is a check verification service and consumer credit reporting agency; similar in ways, to Experian, Equifax and TransUnion; but unique in the fact that its main purpose is to provide information related to how a consumer has handled banking relationships (checking, savings, etc) rather than consumer or business credit relationships. ChexSystems is a registered service mark of Chex Systems, Inc, a wholly owned subsidiary of eFunds Corporation.
Common ChexSystems Uses
Many commercial banks and credit unions in the United States use ChexSystems as a step in approving the application for a consumer who wishes to open a checking or savings account. Commonly, the database kept by ChexSystems will show whether or not a consumer has had numerous overdrafts or an unsatisifed balance with another bank. The information in this database is often a primary factor in the approval or denial of an application for a checking account. In 1999, ChexSystems was successfully deemed a consumer reporting agency, and therefore, governed by the Fair Credit Reporting Act. Consumers are now able to retrieve a free annual report from ChexSystems and allowed to dispute transactions and demand proof of any negative information reported.
Chexsystems Controversy
Many customers have complained about Chexsystems unfair reporting.
Chexsystems does not require any proof of debt and goes by word of mouth of a bank employee.
External links
Free ChexSystems resource sites:
Fee-based ChexSystems resource sites: