I have a question concerning the FCRA & AANs.

Our bank used Chex Systems when denying a consumer a checking account. It was always my understanding that Chex Systems is a CRA but not a national CRA.

From what I have read, Section 615 of the FCRA does not specifically require that it be a national CRA.

However, we do not check the box, “our decision was based, at least in part, on information in a consumer report obtained from the CRA agency listed below." We do not provide any of the required FCRA disclosures. At the bottom of the AAN we check the box, “our decision was based in whole or in part on information obtained from an affiliate or from an outside source other than a CRA….”

I am thinking that this is incorrect and that we should be disclosing that Chex Systems is a CRA…. Am I correct?

Thank you!

You are correct. Your current disclosure process is not.

Randy, thank you!

1 more question....

we do not obtain a qualifile score when we receive the Chex Systems report...

Do we continue to leave the following items blank: (1) score (2) score ranges (3) Key factors but still check the box "Information was obtained in a report from the CRA noted below"???

Thanks!

I have no idea what the form that you are referencing looks like, but if you are not getting a score, then the credit score disclosures are not required to appear on the form at all. If they are there, they should be left blank.

Thank you, I really appreciate your help!

From the FAQ's of ChexSystem's website:

Q: Is ChexSystems a credit bureau?
A: ChexSystems, Inc. is a consumer-reporting agency governed by the federal Fair Credit Reporting Act (FCRA) and other laws.

https://www.consumerdebit.com/consumerinfo/us/en/chexsystems/faqs.htm#FAQ_02

Funky - was that ever in doubt?

Yes, actually it was.

"I am thinking that this is incorrect and that we should be disclosing that Chex Systems is a CRA…. Am I correct?"

I was confirming that by providing a source. When I am reading a thread, I find it helpful to know where information comes from. So to you, that may have been an easy question to answer, but for others who are less experienced (including myself), we may want to know how or where to find the answer.

Well, Chex Systems argued for a long time that their Qualifile product did not produce a score that was subject to the adverse action credit score notice disclosures, so I usually take what ever they have to say with a grain of salt