How ChexSystems responds to bank inquiries about you

[myscoresawful]

I believe people need to understand how ChexSystems works, including how they affect a bank's decision in denying your application for a checking account.

 

I recently applied for a checking account with a large financial institution (I'm purposely leaving out their name because they were 1) good enough to be honest with me, and 2) Who they are is actually irrelevant with regards to this topic), and was declined.  

 

In the denial email, it has the usual verbiage about how they made their decision based on a number of factors, including information received from ChexSystems, a "Consumer Reporting Agency", "based on your checking activity", etc and that, "while ChexSystems was not involved in our decision, we recommend getting in touch with them within the next 60 days"..  "for a free  copy of your banking history".

 

I immediately went to the ChexSystems website and ordered a copy of the complete report because I KNEW I have NOTHING derogatory going on with ANY bank.  About a week later I received my ChexSystems report that confirmed this.

 

So I contacted the financial institution asking them what was the reason(s) that I was declined since there is NO negative banking history on my CS report and they replied with the following:

 

Dear MyScoresAwful,

 

We understand your disappointment in not receiving a (financial institutions name) Checking account after applying on April 9, 2015.  As we mentioned, during our review of your application, we gathered information about you from a variety of sources, including ChexSystems.

 

ChexSystems is a consumer reporting agency used by a number of banks that looks at information related to your past checking account activity to assign a risk score. The primary reason we declined your application was due to your ChexSystems score of 553 (on a scale from 100 - 899), which we consider to be a higher risk score.   According to ChexSystems, the primary reasons for your current score are:

 

·         TIME SINCE NON-DDA INQUIRY ACTIVITY

·         CURRENT ADDRESS CHANGE HISTORY

·         NO EVIDENCE OF ASSET OWNERSHIP

·         NON-DDA INQUIRY OR RETAIL ITEM HISTORY

 

While we ultimately made the decision to decline your application, ChexSystems produces the score and the reasons above, and we don't get to see how they are determined. It's also possible your score was affected by other reasons in addition to the items above.

 

We recommend that you reach out to ChexSystems, using the above score and reasons, and ask for a more detailed explanation of the score and the factors affecting it. 

 

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

 

Ok, so let me break this down:

* TIME SINCE NON-DDA INQUIRY ACTIVITY

and

* NON-DDA INQUIRY OR RETAIL ITEM HISTORY

 

In case you're wondering, I was told that a NON-DDA INQUIRY is an inquiry for reasons other than opening a Deposit Account.  There is ONE (1) showing on the report and it is by one of the auto loan lenders that the dealership submitted my application to last month.  (THIS is part of my 'banking history, how??  And how does this inquiry deem me a risk for a checking account?)

 

* CURRENT ADDRESS CHANGE HISTORY

It shows reports that I've had 4 different addresses for the past 60 months.  Two of them are the same address, but one has the wrong apartment number.  One of them is also a PO BOX that I have had, and still have, and will continue to keep so that all of my important mail correspondence is more likely to get to me.  I have moved TWICE in the past 5 years.  Again, this makes me a risk or shows anything to do with my 'banking history'?

 

* NO EVIDENCE OF ASSET OWNERSHIP (ok this one really had my neck turning red!)  I found this section on the ChexSystems report and it's titled:

"Additional information may be provided to Chex Systems, Inc. by Lexis-Nexis Risk Solutions Bureau LLC.  The most recent information ChexSystems received fro Lexis-Nexis Risk Solution Bureau LLC relative to you is listed below, .."

 

(and here is the listing under that):

 

Number of address changes reported in the last 12 months: 1

Number of address changes reported in the last 60 months: 4

Total number of properties owned: 0
Wealth Index: 0 (Based on watercraft, aircraft, and property asset records - 0 = no information on file. 1-very low evidence of wealth to 6- very high evidence of wealth)

Total number of non-derogatory records: 5

Total number of derogatory public records (felonies, liens, bankruptcies and evictions): 0

Total number of lien records (both filed and released): 0

Total number of released liens: 0

Total number of bankruptcy filings: 0

Total number of felonies: 0

Total number of evictions: 0

 

 

That's IT!  In other words, it appears that anyone who doesn't own any assets (specifically, a boat, an airplane, or 'property' (property isn't defined, but I do have a home (paid for) in my name that Lexis-Nexis sends me a statement about it's value every year, so not sure why it wasn't 'reported' by them? It's value is only about $60K))... or has moved more than once in the past 5 years (regardless of your reasons why, it clearly shows that it wasn't due to eviction),... or if someone pulls your CS report for any reason other than opening a checking account, then you're seen as high risk with a low score.

 

Someone please help me make sense of this.  It states this report and score is suppose to be based on my "Banking History" but I fail to see where any of these (considered negative) indicators have anything to do with that?

 

The only reason that I applied for a new checking account is because my CU doesn't do VA loans and I am planning to buy a home in the next 2 years and would like to use a lender I'm already established with.  (I did find a well suited national bank for that who opened one without any problems).

 

(As for contacting ChexSystems and 'updating' my information such as the home that is on file with LN, I won't be doing that.  I strongly feel that,  giving these people any more information about me would be like handing them a loaded weapon.  I already have monitoring with the 3 biggies, I am not going to start kneeling to ChexSystems over keeping my information up to date in their incompetent score modelling reports).  

~jumps off my soap box~

[WhoCares1000]

The issue is, these companies have found a way get around the free credit report issue by using other reports and then saying they are not consumer reports. I went to see how to obtain my Lexis Nexus report for free and found they only give you the insurance report, you have to pay for the other ones and I do not have time to fight the issue in federal court (and possibly lose). This is going to get interesting as alternative scoring models come out to deal with those whom the normal FICO score cannot handle.

[refiman1]

Now that sucks. Speak to a lawyer. No way can it be legal to deny you an account for a unspecified reason.

 

Hopefully, you are a minority. Because if you are, I know what my suit would be saying the real reason was.  

[KayLay]

What ever happened? I had the same issue...2 non-derogatory 3 address changes in the last 60 months.

All these consumer reporting agencies need better overseeing. We have to fight too hard to fix others errors. And we the consumers always gets the short stick.

[fisthardcheese]

What ever happened? I had the same issue...2 non-derogatory 3 address changes in the last 60 months.

All these consumer reporting agencies need better overseeing. We have to fight too hard to fix others errors. And we the consumers always gets the short stick.

 

Chexsystems must comply with the FCRA.  You treat them just like any other CRA.  Therefore, I would send in a written dispute asking them to remove incorrect information.  If they do not correct any issues, I would file a suit in small claims against them.

[Lnsky]

Thanks for posting.  I lost my job 8 months ago and have since been doing what I can to scrape enough money together to finish out my lease on my pricey apartment including driving for Uber. 

 

I I wanted to open a seperate account for Uber deposits and debits as it is 1099 pay and the taxes can get complicated so this would simplify things.  I was shocked and appalled when I was denied a checking account by a bank and credit union.  Until my job loss my credit was stellar. 

 

I have been late on a few accounts but none are delinquent and it is a checking account.   You shouldn't have to put up a house to get one. I don't know if it would be easier if o wasn't applying for free checking.  

Ive ce been with the same large bank for ten years.  The account is in good standing.  I think all it comes down to is banks don't make money off of checking accounts.  

Chase openly admitted they are interested in customers who have less than $150,000 they can bring over when opening account.  It doesn't mean they will deny you on that alone but it means you aren't welcome.  

The he reason this is happening is because during all the changes back in the financial crisis one regulation was that banks could no longer change a business a dollar per transaction every time you swipe you debit card.  That's how they were paying for checking accounts and profiting.  Every other part of the Dodd-Frank was shredded so I don't know why this held up.  

I'm utterly shocked.  It used to be illegals were the only ones who could get a checking account and still even some could.  Luckily I have an account but I'm glad to know if I ever had it closed for some reason I'd be screwed.  I can buy a $30,000 car with zero down and low interest but not open a checking account?   Wtf

[stick&rudder]

In the meantime, you should be able to get a savings account that your direct deposit can then be put into each payday.  Also, there is the prepaid card route as well.

Wheels up,

Stick

[Christina Roy]

I’m really P.O. about what I discovered in my report it’s all a bunch of bs for one then to top it of it says my social security number was issued to me in 1991 let’s stop right there bc I was born in 1987 so how is this possible then it states I never moved but they have 3 addresses on file and boy is there so many different accounts that I supposedly inquired about but yet I’ve never even seen or heard of half of these accounts and you know what once was my bank throw me in jail and is going off of this report as evidence that what they are stating is true but I have so much proof that they have lied from the start and they didn’t even turn in the actually report just stated a few things that was  mentioned but I requested a copy and I have received it and does it proof how much of a lair they really are all this bc they forgot to put a hold on a 750 dollar check so they had me arrested for bank fraud where they do that at 

[Harry Seaward]

10 hours ago, Christina Roy said:

it says my social security number was issued to me in 1991 let’s stop right there bc I was born in 1987 so how is this possible

Not everyone gets a SSN the day they are born.  I didn't get mine until I was in my teens.

[BV80]

12 hours ago, Christina Roy said:

I’m really P.O. about what I discovered in my report it’s all a bunch of bs for one then to top it of it says my social security number was issued to me in 1991 let’s stop right there bc I was born in 1987 so how is this possible then it states I never moved but they have 3 addresses on file and boy is there so many different accounts that I supposedly inquired about but yet I’ve never even seen or heard of half of these accounts and you know what once was my bank throw me in jail and is going off of this report as evidence that what they are stating is true but I have so much proof that they have lied from the start and they didn’t even turn in the actually report just stated a few things that was  mentioned but I requested a copy and I have received it and does it proof how much of a lair they really are all this bc they forgot to put a hold on a 750 dollar check so they had me arrested for bank fraud where they do that at 

Please start your own thread.  That will enable us to address your specific concerns.

In addition, please use some punctuation and capital letters where they are appropriate.  Your post is difficult to read because there is no punctuation or capital letters to indicate where one sentence ends and another begins. 

We want to help, but your post is difficult to read.

[Mathura]

What is meant by Non-derogatory.

Recently we found the identity theft of our records. So I have requested statement from chexsystems.

There was I found 

Total number of non-derogatory records:1

I don't have any auto loan.

Please explain in detail

TIA

[Roy G]

On 9/1/2018 at 1:22 AM, Christina Roy said:

I’m really P.O. about what I discovered in my report it’s all a bunch of bs for one then to top it of it says my social security number was issued to me in 1991 let’s stop right there bc I was born in 1987 so how is this possible then it states I never moved but they have 3 addresses on file and boy is there so many different accounts that I supposedly inquired about but yet I’ve never even seen or heard of half of these accounts and you know what once was my bank throw me in jail and is going off of this report as evidence that what they are stating is true but I have so much proof that they have lied from the start and they didn’t even turn in the actually report just stated a few things that was  mentioned but I requested a copy and I have received it and does it proof how much of a lair they really are all this bc they forgot to put a hold on a 750 dollar check so they had me arrested for bank fraud where they do that at 

very interesting. i was born in 1987 also and my first name is Roy. strange. i just confirmed my info with them over the phone now waiting on report. over a year ago i opened a bank account that i didnt end up using no problem at all and now this and nothing on my end has changed. very strange.

[Flyingifr]

Think opening a personal bank account entails jumping through hoops and other BS, try opening a business account. I have a Single Member LLC (meaning one owner) and I moved from AZ to PA recently so I wanted to open a business account in PA. Not so fast, they said, the bankers want to see my Operating Agreement (an agreement between myself and myself detailing what has to be done in order for the business to operate and legal processes to enforce the letter of these provisions that would basically allow me to sue myself to enforce the Operating Agreement) - and it had to be drawn up by a lawyer - all 15 pages single spaced. I refused to pay a lawyer $700 to give me 15 pages of nonsense saying I held a meeting at some time when I did not hold a  meeting, and I agreed with myself, after lengthy debate and hours of discussion, to 15 single spaced pages of nonsense, so I went on line and found a 15 page single spaced template and copied it, but I also decided to see if anyone it the bank would actually read this BS so I added two provisions - the first, under the section titled "Items Requiring Unanimous Consent of Member" to read

(c)  To set the annual date of the Company “Wear Pink Panties To Work Day” which shall be held as soon after the end of the tax filing season as practical.

 

and the other on the last page stating that this Operating Agreement was adopted by a vote of 5 in favor, 3 opposed and 24 abstentions.

 

No one at the bank commented about either of these.

[BackFromTheDebt]

I work in banking these days.  
 

I have had training in money laundering.  One session was a guest speaker who helped take down Pablo Escobar, as well as the US bank that helped him launder money.  This guy went undercover as a rogue accountant.  Actually dangerous.  One of Escobar’s accountants was murdered by orders of Escobar. 
 

Anyway, that bank was shut down.  Other banks which have been sloppy in money laundering have had fines in the hundreds of millions or even billions.  
 

Most banks don’t want to deal with money laundering, so they come up with all sorts of rules.   If the banker you work with follows these rules, he is protected if anything goes wrong.  
 

My guess is the banker you worked with had to make you follow a bank rule.  The fact that you sent in 15 pages allowed him to check it off to cover his posterior.  
 

I won’t tell you which bank I work for, but I deal with regulatory issues at times.  You would be astonished as to how much money the bank has had to eat to avoid dealing with regulators.