Personal Finance: How Banks Secretly Track Your Bad Behavior
You could be blocked from getting a bank account and have no idea why if your profile in ChexSystems has errors.
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[1].
Were you aware of this database? Do you think it is a good or a bad system?
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[1] http://money.cnn.com/2012/08/16/pf/bank-account-history/index.html?iid=SF_PF_LN
Comments (5)
Category: Real Estate
Bryan E.
IT IS NOT SURPRISING THAT ANOTHER DATABANK “CHEXSYSTEMS” IS ALSO ACCUMULATING DATA ABOUT OUR CITIZENS. WHAT SURPRIZING IS THAT WE DO NOT HAVE ACCESS TO THE INFORMATION LIKE WE DO WITH THE 3 CREDIT BUREAUS…EVERYBODY HAS EVERYTHING THERE IS TO KNOW ABOUT US…..EXCEPT US.
As a real estate investor I have run into this system. I have had a credit repair person trying to get my foreclosure and short sale removed on the basis of privacy. We have not succeeded as yet but I have had to seek private and hard money to get my deals done. I have to charge the end buyer more in order to make my spread. Thee has got to be a way to get things removed from this system. It is very damaging.
Another case of being manipulated by banks….DUMP THEM!! We could be OWNER FINANCING our way OUT of this mess! We don’t need banks and politicians telling us what to do. “Too big to fail” doesn’t seem to apply to anyone but them. Our 11 year business that used to buy & sell over a dozen homes a MONTH is on the ropes because of BAD LAWS!!
REPEAL DODD-FRANK and SAFE ACT (it is just an Act anyway-acting like it IS a good law – WHEN IT IS OPPOSITE). People have the answer not big Buiz or Big GOV!! Not working? FHA about to fail? More bailouts? \
We DESERVE BETTER…if the POLITICIANS CANNOT FIX IT…DUMP THEM!!
As far as private databases….aren’t there rules ALREADY on the books TO PREVENT PRIVATE BLACKLISTING? That is what they are doing, by another name.
AAAAAmen! (to repeal dodd /frank). When will the american people learn that these Idiots Dodd and Frank and the ones who voted this bill in, have caused the U.S. property market to not only not recover but are destroying it before our very eyes with NO END IN SIGHT.
and the values are still falling. We need to find out who voted for Dodd/Frank and vote them OUT.
Welcome to nazi amerika comrades! YOU SHALL COMPLY!