Posted By: TeamComply
Disclosure of Info. within ChexSystems Report - 10/02/19 07:56 PM
We are having a debate at the bank, regarding whether or not bank employees are allowed to discuss with account applicants the information reported in the applicant's ChexSystems report. When something is reported by ChexSystems as part of the new account opening process, how should a bank employee respond??
1) provide details found within the report, such as: "there is account abuse/misuse reported by ABC Bank" or "XYZ bank reported NSF activity or a charge back on your account," etc. OR
2) should it just be broadly stated, such as: "there is information in your ChexSystems report that does not allow us to continue with opening an account." Then inform the applicant that he/she may contact the agency (ChexSystems) directly for information about their report - and provide their contact information to the applicant.
How do most banks handle this or how are banks required to handle this? Thanks!
1) provide details found within the report, such as: "there is account abuse/misuse reported by ABC Bank" or "XYZ bank reported NSF activity or a charge back on your account," etc. OR
2) should it just be broadly stated, such as: "there is information in your ChexSystems report that does not allow us to continue with opening an account." Then inform the applicant that he/she may contact the agency (ChexSystems) directly for information about their report - and provide their contact information to the applicant.
How do most banks handle this or how are banks required to handle this? Thanks!