We all know that we need to pay our bills on time and avoid bouncing checks, but did you know that every time you slip in these areas, a secret database in Minnesota is probably taking note? ChexSystems is a 40-year-old data company that holds information on more than 300 million consumers and provides reports on those consumers to about 80 percent of the banks in America. While this might not seem that dissimilar to any other type of credit reporting, ChexSystems flies so far below the radar that most consumers are not even aware that they have a profile, much less that the profile could prevent them from opening a checking account at their local bank. Negative information on banking behavior remains in the system for five years after it is reported, and the information cannot be removed unless consumers dispute it and the bank or credit union that provided that information officially admits that it made an error. ChexSystems also provides information on your use of payday loans, even if you pay them off and reports on any suspected bank fraud that your lending institution may believe you have engaged in.
Were you aware of this database? Do you think it is a good or a bad system?
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Category: Real Estate