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#1028873 - 08/27/08 01:01 PM ChexSystems disclosure
dzeiler Offline
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Joined: Jun 2008
Posts: 24
Florida
Does anyone know if there is a requirement to disclose to customers that we run ChexSystems when opening an account?

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#1028971 - 08/27/08 02:45 PM Re: ChexSystems disclosure dzeiler
ahanna Offline
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Joined: Aug 2008
Posts: 380
Texas
I have never seen a citation for a requirement as long as you have a legitimate business purpose (i.e. the credit check is on the accountholder). You do have to be careful with authorized signers though and be sure the signature card contains the authorization wording because they do not necessarily qualify as a legitimate business purpose since they will not own the funds. All of our signature cards contain the authorization (in a simple sentence)just to be on the safe side.
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#1041058 - 09/12/08 04:02 PM Re: ChexSystems disclosure ahanna
dzeiler Offline
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Joined: Jun 2008
Posts: 24
Florida
Thank you!

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#1041237 - 09/12/08 06:06 PM Re: ChexSystems disclosure dzeiler
DeeQ Offline
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DeeQ
Joined: Dec 2002
Posts: 40,760
Turnpike Exit 10
Chexsystems is not a CRA, keep that in mind.

Also, my recollection is that Chexsystems has account decline notices for the consumer, so that they can contact the company in the case of discrepancies. These notices should be given out when an account is not opened because of the Chexsystems records.
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#1041513 - 09/12/08 08:45 PM Re: ChexSystems disclosure DeeQ
brainOverload Offline
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brainOverload
Joined: Jul 2008
Posts: 275
DFW, Texas
Sorry DQ, but I have to dissagree with you...

ChexSystems is a Consumer Reporting Agency and is governed by the FCRA.

There is no Federal regulatory requirement to obtain a signature but you must have a permissible purpose to pull a report.

A notice as you described is required if opening an account is declined due to what was found in the report.
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#1042505 - 09/15/08 07:57 PM Re: ChexSystems disclosure brainOverload
ahanna Offline
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Joined: Aug 2008
Posts: 380
Texas
Our auditors have agreed with BO (no pun intended)in classifying a check reporting agency as a CRA.
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