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#2246001 - 12/01/20 03:55 PM Reporting to ChexSystems - Required?
CSB98 Offline
Diamond Poster
Joined: Dec 2003
Posts: 1,236
Wisconsin
We utilize ChexSystems when opening deposit accounts. We have been notified by FIS that we are required to report any charged off deposit accounts to them. Is this truly a requirement under FCRA? I thought reporting to them was at the discretion of the financial institution.

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#2246006 - 12/01/20 04:32 PM Re: Reporting to ChexSystems - Required? CSB98
rlcarey Offline
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rlcarey
Joined: Jul 2001
Posts: 77,548
Galveston, TX
Well, you either have a contract with ChexSystems or you do not. Usually, if you have a contract with them, then such requirements are a condition of using their services. They are not going to allow you to use their services and then not report your own accounts to them accurately.
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#2246017 - 12/01/20 06:08 PM Re: Reporting to ChexSystems - Required? CSB98
RockChucker, CAMS Offline
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Joined: Jul 2013
Posts: 1,579
The Country
Besides, what use is the product if the participating banks are not reporting cahrged off accounts? Would you use it if other banks didn't report? I thought not.
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#2246019 - 12/01/20 06:13 PM Re: Reporting to ChexSystems - Required? CSB98
CSB98 Offline
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Joined: Dec 2003
Posts: 1,236
Wisconsin
We don't necessarily use it to determine if we are going to open an account. We mainly use it to verify information and run OFAC checks prior to the account being opened.

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#2246021 - 12/01/20 06:21 PM Re: Reporting to ChexSystems - Required? CSB98
rlcarey Offline
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rlcarey
Joined: Jul 2001
Posts: 77,548
Galveston, TX
I think the point that I was trying to make is that it comes down to the services contract you have with ChexSystems and FIS. You need to start there. If it is not in your contract with them as a requirement for using their services, then ask them point blank as to what the heck are they talking about.
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#2252494 - 04/16/21 05:32 PM Re: Reporting to ChexSystems - Required? CSB98
TryingtoComply Offline
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Joined: Apr 2013
Posts: 1,826
The West
We received a similar notice and explained that we don't close an account for reasons that require reporting very often. As for using ChexSystems for your OFAC verification, your core system or AML software may offer an alternative.
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