Hi, I've been lurking here forever. I have been able to purchase a house - 100% financing, no down payment & seller paid all closing cost. Thanks to the site & all that contribute. + starting a business. ??? Chex Systems said I owed the bank $800.00. I disputed, I had no loans. Just closed my account. Chex systems went back to the back with the dispute. The bank released to them all my records + signature cards. Never anything re: the amount. Is it LEGAL to release bank records ? Thanks Anna-Anna
Chexsystems doesn't deal with loans. They deal with bank account fraud and overdrawn accounts. If you had an account that was overdrawn for a long period of time (45+ days), that bank can report your name & SSN to Chexsystems. Chexsystems is a "credit check" for banks when opening deposit accounts. If you have a record with Chex, you have shown that you haven't handled your accounts satisfactorily in the past. It is then up to the bank to decide to open an account, or decline you. Chex is still a CRA and subject to the FCRA. You can dispute and do the things you can to remove the record. In most cases, the record is there for 5 years and MOST banks will not open an account for you if you have a record.
I was never overdrawn. I just closed my account. I opened another one closer to my home. I did dispute & will dispute again. My concern is that they released my records to chexsystem. I thought that they had to protect your banking records better.
You may pay an overdraft charge or return check charge. You may end up paying a charge to the business you wrote the check out to as well. Shouldn't have any other consequences than that.
Before they send your records to Chexsystems, they should've (must) send you a written notice. This notice will let you know WHY they are contacting you, what you need to do, or they will recourse to sending your info to chex. When accounts become abused, excessively overdrawn, or confirmed fraud, it is the financial institution's responsibility to report it so that other financial institutions have a source to check financial responsibility. This is why information is sent to chexsystems - to ensure that the applicant's past financial responsibility is reported so that other banks will know and protect themselves from potential losses.
Re: Re: Bank Releases Bank Records to Chexs Is that only TRUE FACTS can be reported??? Or also SUSPICION that can be reported???
Re: Re: Re: Bank Releases Bank Records to Chexs It depends on the bank. Wells Fargo will only send TRUE FACTS. However, I've had records for others with Washington Mutual who had reported them for suspected fraud OR NSF (insufficient funds) activity - yet owed no balance to WaMu. Basically, they overdrew their account but paid all their fees and closed the account with a zero balance - yet they are still reported.
Re: Re: Re: Re: Bank Releases Bank Records to Chexs I was asking about SUSPICION because I can and do a lot of BT'S and a lot of it goes into and out of the checking account... SUSPICION can be a loaded word... NEVER HAS BEEN OVERDRAWN...but a lot of money in and out...SUSPICION
Re: Re: Re: Re: Bank Releases Bank Records to Chexs That's usually not a problem (BT into checking and right back out). I wouldn't worry about activity like that.
