We are a small bank, just started using ChexSystems (!) and now we are beginning to report to ChexSystems of accounts we closed with overdrafts. I know we are reporting the Notice of Negative Information to our customers on the lending side, but on the deposit side, what must I do to be in compliance??

Any help is appreciated!

It only applies to credit accounts:

623(a)(7) Negative Information

(A) Notice to Consumer Required

(i) In general. If any financial institution that extends credit and regularly and in the ordinary course of business furnishes information to a consumer reporting agency described in section 603(p) furnishes negative information to such an agency regarding credit extended to a customer, the financial institution shall provide a notice of such furnishing of negative information, in writing, to the customer.

Thanks rlcarey!