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#277373 - 09/19/05 01:55 PM Re: FACT Act Q&A
M&M Offline
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Joined: Nov 2003
Posts: 530
Midwest
Sorry to bubble this topic up again, but I'm seeking some clarification. It is our policy to provide a Chex Systems adverse action form to any consumer for whom we refuse to open a deposit account due to negative information provided by Chex Systems. Is this required by any regulation? I've seen a few items that indicate they are not a national credit bureau, and thus not subject to the negative information notice. I've also seen a couple of indefinitive answers. Opinions anyone?

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#277374 - 09/19/05 02:07 PM Re: FACT Act Q&A
rlcarey Online
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rlcarey
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Posts: 83,227
Galveston, TX
They are not considered a national credit bureau and the notice regarding negative information is not required as it relates to reporting negative information to Chex Systems. That is a totally different issue than providing an adverse action notice, which is required when the action you are taking based on a credit report is adverse to the interests of the customer.
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The opinions expressed here should not be construed to be those of my employer: PPDocs.com

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#277375 - 09/19/05 02:15 PM Re: FACT Act Q&A
M&M Offline
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Posts: 530
Midwest
Ok, Randy, I'm confused. If we use info from Chex Systems to deny a customer who is attempting to open an account, do we need to provide them an adverse action notice?

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#277376 - 09/19/05 03:17 PM Re: FACT Act Q&A
Lost in a sea of Regs Offline
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Kansas
Not to speak for Randy, but yes you need to provide an adverse action notice because you are denying them an account.

A seperate issue is the notice of negative information. This notice is not required as in this case YOU are not reporting information. Even if you were reporting info to Chex Systems you would not need the notice of negative information as it is not a NCRA.

Notice of negative information is only required if you are going to, or have, reported negative info to a NCRA.
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#277377 - 09/19/05 03:39 PM Re: FACT Act Q&A
M&M Offline
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Joined: Nov 2003
Posts: 530
Midwest
Thanks "Lost"- I needed that clarification!

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#277378 - 09/19/05 03:40 PM Re: FACT Act Q&A
M&M Offline
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Joined: Nov 2003
Posts: 530
Midwest
One more question- does it have to be in the form a consumer can keep?

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#277379 - 09/19/05 05:41 PM Re: FACT Act Q&A
rlcarey Online
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rlcarey
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Posts: 83,227
Galveston, TX
It can be oral, written or an electronic notice. However, if given orally, you would basically have to read the whole disclosure to them.
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The opinions expressed here should not be construed to be those of my employer: PPDocs.com

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#277380 - 09/19/05 08:22 PM Re: FACT Act Q&A
M&M Offline
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Joined: Nov 2003
Posts: 530
Midwest
Thanks Randy. Then as I read it, if we were providing this information on our website during an online application process, we could pop-up the information on the screen for the consumer, provided it contained all of the information contained in the adverse action notice. I don't see in section 615 where it states it must be in a form the consumer can keep, just needs to be made available if they ask. Am I misinterpreting anything?

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#277381 - 09/20/05 11:42 AM Re: FACT Act Q&A
rlcarey Online
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rlcarey
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Galveston, TX
During the application process? -- or after you have made a decision not to open an account based on information from a credit report? As long as it was a window that could not be by-passed and I would allow for printing, I think it might be workable - but one would have to analyze the whole process.
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The opinions expressed here should not be construed to be those of my employer: PPDocs.com

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#277382 - 10/27/05 10:38 PM Re: FACT Act Q&A
Anonymous
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Last edited by Andy Z; 10/31/05 04:04 PM.
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