Looking for feedback -dealing with Chex Systems

#1 - Should you pull a Chex Systems on a infant/minor - in my opinion I feel this is not necessary. We do run an OFAC, which I feel covers any information that we need to review. Not to mention that we are charged a fee per Chex Systems that is run.

#2 - Should we be pulling a Chex Systems on a Revocable Trust - I can see pulling it for the actual Grantor - but I'm referring to the Trust agreement itself-

Thanks for any feedback!

What and when you pull is up to you. What do you ever expect to get back from pulling them in the scenarios that you have outlined?? You might also want to check your services agreement. Last I checked, Chexsystems was a specialized consumer credit reporting agency and it does not technically support non-consumer inquiries.

We do not run ChexSystems (QualiFile) on either of the customer types you mentioned. The only benefit I could see to doing so (since one would not expect a chex record on a child or a rev trust) is verification of information given (i.e. address, TIN/SSN, etc.). Aside from that, probably not worth the additional cost.

We do run QualiFile on business customers, as they do provide chex records for them.

Taking a break from serious -- Why is it that, every time I see "Chex Systems" I think of party mix and get a case of the munchies?

Ahhhhhh.......chex mix......thanks John, now I've got the munchies too!

If I remember correctly, you put in a birth date and for a minor it would come back with no information. I think it tells you it is a minor. Unless things have changed, it was a waste of time trying. Run it on the parent or guardian and be done. Once the child is of an age and able to make withdrawals, then you will have a school ID and be able to identify them.

We wrote in our CIP procedures that we exempt a minor from Photo ID and Chexsystem verification, but we CIP the adult that is required to be on the account.

We use the legal document for verifying a trust, Business account, etc.

Lizz, FWIW, I agree with you. Consulting a negative data base on individuals and entities on which there is not going to be any information is a simple waste of time and effort.

Banks are entitled to spell out differing CIP processes for different classes or types of customers; e.g. minors or people who do not have identification due to age (including youth) or disability.