ChexSystems: Difference between revisions
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== Criticism == |
== Criticism == |
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ChexSystems has been criticized by many bank and credit union customers for unfair reporting. Many of these complaints are documented and reported on by various web sites and internet forums, including ChexVictims.com. |
ChexSystems has been criticized by many bank and credit union customers for unfair reporting. Many of these complaints are documented and reported on by various web sites and internet forums, including [http://www.ChexVictims.com ChexVictims.com]. |
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== External links == |
== External links == |
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* [https://www.consumerdebit.com/consumerinfo/us/en/chexsystems/faqs.htm ChexSystems Official Consumer website] |
* [https://www.consumerdebit.com/consumerinfo/us/en/chexsystems/faqs.htm ChexSystems Official Consumer website] |
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Revision as of 03:20, 19 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.
Criticism
ChexSystems has been criticized by many bank and credit union customers for unfair reporting. Many of these complaints are documented and reported on by various web sites and internet forums, including ChexVictims.com.
External links
Free ChexSystems resource sites:
Site critical of ChexSystems: