ChexSystems
However, for the nearly 8 million people that ChexSystems h as on file, it is a very real problem. Many people feel very calm ChexSystems has become the elder brother of the banking industry. ChexSystems is a much needed service for banks. On average, financial institutions are affected with more than $ 1 billion in losses check fraud each year. And spend more than $ 200 million to prevent, detect and prosecute fraud investigation.
The criticism has been that there are no established guidelines for exactly what was reported to ChexSystems. It is totally individual member banks. There are no procedures to distinguish between the person who may have had one or two incidents of unintentional overdrafts? and the person who actually committed a serious act of fraud and passing numerous checks on a closed account. Depending on the internal policies of a particular bank, a person may have their account closed and reported to ChexSystems for as little as a check. Once on ChexSystems are treated all alike, and the record can remain for five years. Bank executives defend the ChexSystems database as a valuable weapon in the fight against fraud and subprime.
To help prevent fraud and abuse of the account, banks and other financial institutions are based on information from ChexSystems. They say it helps keep banking services accessible and widely available to the general public. ChexSystems is also licensed as a collection agency debt. They have a separate department to help participating members to collect on unpaid accounts. It also makes them subject to the Fair Debt Collection Practices Act (FDCPA) While ChexSystems is the basis of data used by the banking sector, other similar systems, such as TeleCheck, and National Data Protection Check and verification services. If you recently been denied from opening a checking account due to a negative ChexSystems report, you are entitled to a free copy of this report. To contact ChexSystems by mail: ChexSystems, Inc. Attn: Consumer Relations 7805 Hudson Road, Suite 100 Woodbury, MN 55125 Phone: 800-428-9623 or by fax at 602-659-2197 Greg Ford is the owner and webmaster Additional information regarding options for people in ChexSystems can be found there.