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#1406495 - 06/22/10 01:42 PM Chex Systems help needed
Anonymous
Unregistered

I'm getting confused. A new FSR who came from anotehr bank states that if a customer is denied an account due to a Chex Systems report we CAN'T give the customer information on what bank reported them or what year it's from. We can't give them ANY information, we can just say "you were reported by a bank" and give them the notice and they are on there own.

The reason I'm confused is because we all thought we could tell the customer "I can't open your account at this time. "X" bank reported you to Chex Systems in 2008, here is the information to call ChexSystems to get more info"

We don't always give them all the information, like the year, but we do tell them what bank reported them before sending them off with the notice to call Chex Systems.

Who is right? I'm stepping into a supervisor role soon and don't want to give employees wrong information.

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#1406519 - 06/22/10 02:18 PM Re: Chex Systems help needed Anonymous
Georgia Plum
Unregistered

I would not divulge the specific information. The customer probably already knows who reported them, but if it is an error, they need to deal with Chex Systems and the reporter of the info. You really don't want your bank in the middle of it. If you tell the customer who reported them, and they go down the street to that bank and say HEY - ABC Bank Said ..... it could cause you some reputational risk, especially if it's an error.

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#1406568 - 06/22/10 03:19 PM Re: Chex Systems help needed
Kitty Offline
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Kitty
Joined: Mar 2001
Posts: 236
We do not tell the customer what information was reported to ChexSystems or what bank reported the information. We just give them the form supplied by ChexSystems. If they have any questions they can contact ChexSystems directly.

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#1406712 - 06/22/10 05:38 PM Re: Chex Systems help needed Kitty
Midwest Banker Offline
Gold Star
Joined: Nov 2004
Posts: 349
Cheeseland
Why wouldn't you tell them? It's like denying someone for a loan and telling them you can't tell them why.

If we deny an account for a positive Chex Record, we politely explain why (most people know) they are being denied and why (NSF issues, etc) and who reported them. We then give them the Chex Systems adverse action form and let them know if they feel there are any discrepancies, they should contact Chex directly. If they are aware of the issue, we suggest they contact the bank and make any payments if monies are owed. We also let them know this will not remove them but of course, showing no monies owed is a better thing. We then offer suggestions on institutions that offer second chance checking or will consider opening an account under certain restrictions.

It's all about how you present it.

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#1406725 - 06/22/10 05:55 PM Re: Chex Systems help needed Midwest Banker
Anonymous
Unregistered

You don't want to give out specifics for the same reason you don't give that out when you turn someone down for a credit/loan product.

If you turn someone down because of a collection on their account, do you tell them " Mr. Customer....because of your collection in the amount of $456.32 from Bank of Mars who is now being services by XYZ Collections, we will not be able to extend you credit."

NO you don't include the details. You simply tell them or send them a letter stating due to "outstanding collections" etc... we will not be able to extend you credit.

Chex systems is no different. You give the general reason and let the customer take care of the details. As mentioned before you don't want to get involved in the details.

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#1406734 - 06/22/10 06:10 PM Re: Chex Systems help needed Anonymous
Midwest Banker Offline
Gold Star
Joined: Nov 2004
Posts: 349
Cheeseland
As noted above, no one is saying anything to the customer, just handing them a piece of paper and telling them to contact Chex Systems. Why? This makes no sense.

As a customer, think about what you would want to know and how you want to be told. This is why we disclose the information we have been told (via the system).

It's a back policy how to handle this and I can tell you from working under both "ways," I wouldn't want to go back to all the hush, hush secret stuff.

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#1406758 - 06/22/10 06:24 PM Re: Chex Systems help needed Midwest Banker
Georgia Plum
Unregistered

You are right that it is bank policy, however, I would rather be consistent and tell them they need to contact Chex Systems for further information than to have 50 CSRs out there putting their own spin on things and possibly putting the bank in a libel or litigous position. And no, we also don't tell them specifics when we deny them credit, either. We let them know where we got the information, and how they can get a copy of their credit report to review.

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#1406786 - 06/22/10 06:57 PM Re: Chex Systems help needed
Aggs Offline
Diamond Poster
Aggs
Joined: Nov 2009
Posts: 1,331
Hoosier Country
Interesting. I can see both sides. When I worked in the branches (7-10 years ago), I worked for a very large bank and we were allowed to tell the customers the name of the bank that reported them. I don't see how the bank could be sued for libel for simply telling the customer who reported them, especially if they ask. Maybe I'm missing something?

As far as I know, ChexSystems is separate from the customer's credit report, it reports account issues rather than credit issues. I don't see the harm in telling the customer "1st Bank of Downtown is reporting you for a charged-off account".

And as far as lending goes, I do know that people sometimes are told specific issues with their credit report. They're given a chance to explain, etc. Like "Everything looks pretty good, but do you realize that you have an outstanding collection from Some Utility Company for $87?"

Overall, my answer is - FOLLOW YOUR BANK'S POLICY. Hopefully you have an account opening policy you can refer to.
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#1406893 - 06/22/10 09:08 PM Re: Chex Systems help needed Aggs
BetsyS Offline
Gold Star
Joined: Jun 2009
Posts: 468
I would recommend checking your ChexSystems contract. It's been years since I've dealt with them, and they've gone through a lot of changes since then. But I seem to recall that releasing information on a subject inquiry was addressed. Our standing policy since then has been not to release information on the report and to refer them to ChexSystems.
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#1407080 - 06/23/10 02:43 PM Re: Chex Systems help needed BetsyS
Anonymous
Unregistered

I agree that you should check your contract. My bank's contract says information received in the report cannot be disclosed by the bank but only by Chex Systems. It is similar to making a credit decision when you give the customer a reason but don't discuss the actual credit history with them, instead referring them to the credit bureau.

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#1407086 - 06/23/10 02:49 PM Re: Chex Systems help needed Anonymous
Anonymous
Unregistered

It can only be a bank policy if it is not specified in your contract. If your contract says you can't, then you can't. Check there first.

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#1407128 - 06/23/10 03:30 PM Re: Chex Systems help needed Anonymous
Anonymous
Unregistered

I have not one time in all my years of banking encountered anyone who was unaware of whatever issue got them reported to Chex Systems. Even if they seemed so in the beginning, they "remembered" as soon as Chex Systems provided them information.

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#1407144 - 06/23/10 04:05 PM Re: Chex Systems help needed Anonymous
RBanker Offline
Power Poster
RBanker
Joined: Jul 2003
Posts: 2,675
Austin Texas
While rare, I have run across one new account applicant who was an ID theft victim.....this too can happen -
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