Do banks pull a credit report when you open a checking or savings account? Also, if you bounce a check, does it get reported somewhere? I've never seen it on my credit reports.
Banks generally use chexsystems although i'm not exactly sure how to go about getting a chexsystems report. It was my understanding that bounced checks do appear on there report, particularly the unpaid ones. Anyone else know how to go about getting a chexsystems report?
Bank of America pulled both a Checx and a TU report. I have 2 CC with BofA and they turned me down for a checking account based on my TU score. Go figure!
Most of the larger banks run both a ChexSystems and a credit bureau report. I tried to open a business account with Bank of America, but my FICO was a few points too low, according to the bank officer assisting me. A few banks (Compass Bank) for example, run only Telecheck. Credit unions generally run a Telecheck/ChexSystems approval, but not the credit bureau check. Of course, there are always exceptions. You can obtain your ChexSystems report here from their online site: www.chexhelp.com ChexSystems and Telecheck are considered credit reporting agencies, and as such, must adhere to the FCRA. For more information on ChexSystems and combatting checking account problems, I found this helpful site: www.chexvictims.com
Telecheck & ChexSystems (and their like) are both CRAs and CAs, they have both a collections and a reporting division; and in a way they use their reporting division as the billy club for their collections division. The Klayman Opinion is where the FTC states that TeleCheck is a CA in addition to a CRA. http://www.ftc.gov/os/statutes/fdcpa/letters/klayman.htm The Edelman, Combs, & Latturner, LLC law firm has a section about TeleCheck, and their dunning letters which threaten that you have already been reported to our database and will not be able to open a bank account, or cash checks until you pay up, without explaining (or the original ones didn't explain) that if you dispute the alleged check they have to provide validation, and can't do anything adverse against you while it is in dispute. I.E. "Pay now even though you have 30 days to request validation, because you are already being harmed by this alleged bad check." III. VIOLATIONS 47 B. VALIDATION OR VERIFICATION NOTICE 50 2. OVERSHADOWING 53 Fair Debts Collection Practices Update http://www.edcombs.com/CM/News/news7.asp
Don't be too concerned about Chexsystems unless you have had some serious problems with returned checks. Banks generally do not report you unless you have a very high frequency of bounced checks or have a negative balance in your account and do not pay up. The average person who accidentally bounces the grocery check or two is not reported. They also keep track of very serious problems such as check kiting or fraud. They report you for five years and it is very difficult to get a new checking account during that period, but it can be done.
The web site for information regarding checking accounts, chexsystems etc is : http://www.chexvictims.com
THEY CAN---THEY DON'T HAVE TO...THERE IS NO LAW THAT MAKES THEM GET A CREDIT REPORT!!! **CHECKSYSTEMS type inquires don't hurt your F.I.C.O. score so that is different... Ask in advance...if they do a credit report...TAKE YOUR MONEY AND RUN!!! It is as STUPID as a credit report for INSURANCE!!! CREDIT REPORTS DO NOT CAUSE ACCIDENTS, CLAIMS AND TICKETS!!!!!!!!!!!!!
My sister opened up a BofA checking account recently with scores around 430. I doubt they pulled a credit report on her otherwise I'm sure they would've said no way Jose.
I have had an account w/Citizen's Bank for about ten years. I opened a second account to give my daughter (17) a debit card to use for college apps, test score fees, travel, etc. They pulled EQ and I blew my stack. I was told by the branch manager they did a soft inquiry and since I had an existing account w/them, it made perfect sense. To make matters worse, they sent some BS form letter stating how they always do that, I had signed permission for them to do so (on a new, blank form that I KNOW I have never signed since their name has changed since I opened my account). I would have preferred a Chexsystems inquiry, since I have no problems there and it doesn't hurt my credit. Also, I had no line of credit or real credit card associated w/the account - just a debit card.
Can anyone explain why a given bank would pull a credit report for a check card as opposed to a credit card? I've heard that some banks do this and some don't. Thanks.
I'm not too clear on the how's and why's of the banking world, but I DO know that I opened an E*TRADE checking account w/ some really poor scores.. I don't recall who they pulled, but it seemed as though as long as I had an existing account from which I could EFT money into their new one, it didn't matter. (kinda like hey, his scores suck, but he's already given us money,...so let's open it) DB
I had a personal cking accnt with Wells Fargo of Texas and I wanted to open a biz account. They pulled an EQ CR, and I was declined due to my BK7 from 9 mos prior to that! And I was an already established customer with Wells Fargo for almost 3 yrs prior to this as well!! They pissed me off so I closed the account that open, sent them a nasty, nasty hate letter, called EQ and had the inq removed. I had not signed anything at the bank prior to the credit pull so EQ just said, "ok...POOF and it was gone. Lucked out on that one. Just an FYI, I am still planning on sending them a follow-up nasty, nasty hate letter as soon as my business sales hit 100k/yr to rub in their face what they are missing! (i am sure they will care less but it'll make me feel better
