Running A Chexsystems Inquiry For Each CD Opened... NORMAL?

Intugumbo | Oct 28, 2022 | 41 posts since 2019

I am going to assume you know what Chexsystems is and the ungodly power they have over your financial life. Also, I am going to assume you know why it is in your best interest to minimize the number of inquiries you have with Chexsytems.

For about the past fives months I was buying one CD a month from a FI (financial institution).

To make a long story short I pulled my Chexsystems report to discover each time I opened a CD, this FI made a Chexsytems inquiry. I have no other derogatory info in my Chexsystems report.

Non of the other FI's where I bought CDs have done this. I suspect those inquiries are reeking havoc on my financial life because I was denied two attempts at opening an new bank account at a different FI.

Is it normal for a FI to run a Chexsystems inquiry every time you open a CD?

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Answers

Kaight | Oct 28, 2022 | 1,192 posts since 2011

First, you are spot on regarding Chexsystems. It is one of the most pernicious outfits in existence, a significant enemy for a great many of Ken's honest readers who are aggressively attempting to maximize their returns within a banking context. That said:

It is normal for some financial institutions to persecute their honest customers using Chexsystems, while at the same time not the norm with others. I assume it is a management decision, within each of our potential banking counterparties, whether or not to submit the data of honest customers to Chexsystems. Some do, others do not.

I dearly wish something could be done about Chexsystems' (what is in effect an) attack on honest people. But I'm fearful such a wish is at best Quixotic.

happyharold4 | Dec 11, 2022 | 388 posts since 2022

I just received my CS report and credit score. Their score is 100-899 and mine was 636. The bank that declined me was last entry on the report, so yes CS was the culprit. I had several " no penalties " accounts with Synchrony Bank and every time the rates changed I closed and reopened for the new rate. They made an inquiry at CS every single time. So really Synchrony is the culprit. So be careful with them going forward. Good news was, that Ally Bank did not make any inquiries to CS.

happyharold4 | Dec 16, 2022 | 388 posts since 2022

I also got my experian credit report and it shows 23 soft hits from Synchrony, ( no problem ), but the exact 23 hits are on the CS report. So either Synchrony pulled from both on every account opening or CS copied from Esperian????

rockies | Nov 27, 2022 | 295 posts since 2018

I, too, have my own set of ChexSystems horror stories. So, for what it is worth, I have now taken these actions.

- For multiple reasons, I have shifted shorter term investments to Treasury Bills via a broker. No ChexSystems or credit checks here.

- If I want to pursue a direct CD, my standard process is to state very early up front in the process a version of the following "I manage a significant portion of my retirement funds myself. As a result, I have many bank accounts opened in an effort to take advantage of high rates when they are available. Consequently, my ChexSystems report will reflect multiple inquiries. Is this a disqualification criteria for your bank/credit union? If so, I do not want to waste your time or mine. And, I do not want to add a ChexSystems inquiry to my record if you already know you are going to decline on this basis."

If they indicate they disqualify on this basis, I ask to speak to a manager. Only once have I been told I would be declined after speaking to a manager. So, I canceled my application immediately so no ChexSystems was ever run. In every other case, the manager has stated they are simply looking for bad banking behavior (bounced checks/money owed to other banks/etc). When I assure them this is not an issue, I have proceeded successfully.

- If they indicate that the number of ChexSystems inquiries is not an issue, I ask for this confirmation in writing before submitting my application. And, I proceed only after I have received the confirmation in writing.

ChexSystems is a disaster for those with clean banking records. But, I guess my approach has been to figure out how to work around them.

IGR | Nov 28, 2022 | 580 posts since 2020

For my personal curiosity, why via a broker? for the liquidity? TD isn't using ChexSystems either, it has access to multiple government DBs to rely upon for the Identity Verification, primarily IRS.

1. How do you know that CSR Manager gives you correct answer about FI's underwriting criteria?
I found that most of CSRs are oblivious about ChexSystems, they tend to redirect the conversation into the statement of "soft pull".
I'm currently locked into the argument with Connexus and Ally(where banking/membership relationship had been long in existence and in active use) of why they require me to go through standard verification process that will likely result in ChexSystems inquiry. The problem I try to solve is that their standardized process is the same for "Apply" for Account/Membership and "Open a New Account" under Established Customer Relationship.

2. How your approach ensures you that you will be able to open the Account of your choice in the Institution where underwriting guidelines consider number of Consumer Report Inquiries AND/OR Consumer Score reported by ChexSystems?

My issue with the ChexSystems is that it does not represent New Accounts and it it is not used exclusively to verify identify of NEW Customers.
There every inquiry, resulted or not in New Account or New Customer effectively detrimental to the ability of next successful New Account or New Customer Application.
My issue with the ChexSystems and FI's using it is why I would be solicited, welcomed and allowed to make a deposit into Existing Account, but must be qualified for brining the same Deposit into Additional Account under the same solicitation!

rockies | Nov 28, 2022 | 295 posts since 2018

@IGR
I am acquiring Treasurys via a broker (vs Treasury Direct) for multiple additional reasons - pre-existing brokerage account, no commissions, simplicity, one source for brokered CD's and Treasurys, after-tax account and IRA, liquidity, etc.

1. After going through this process a number of times, my intuition is pretty good at figuring out if the agent I am speaking with knows what I am talking about. If not, I simply ask for a manager. Usually, my request for the answer to be documented in writing will surface a problem if one exists. Note that my approach is not intended to avoid all ChexSystems inquiries; I simply want to avoid the ChexSystems inquiries that result in a denial.

2. My experience is that if I have the commitment in writing, there is not a problem. I have found this criteria is always negotiable....though sometimes not easily negotiable. My most recent disagreement on this topic upon being denied required a letter to the CEO of the credit union.....which, ultimately, led to my membership being approved and the CD opened with the original terms.

I absolutely agree with your observation that the damage from ChexSystems inquiries is additive over time. Five years ago I had absolutely no idea who ChexSystems was or why they were relevant. And, I am angry they are able to wield this much influence on the affairs of responsible depositors. Fundamentally, I view ChexSystems' ability to limit my access to banking offers based on the number of inquiries (and NOT on bad banking behavior) to be anti-competitive. It is intended, by design, to discourage a depositor from shopping for the best deposit rates.....As an analogy, it is very similar in many respects to Best Buy asking if you have been to Wal-Mart, Target, Sam's Club, and Costco before shopping with them and, if so, Best Buy refusing to sell you a well-priced TV. Best Buy would never be permitted to do such a thing....and neither should ChexSystems and the banks/credit unions.

Intugumbo | Dec 1, 2022 | 41 posts since 2019

@rockies

If they indicate they disqualify on this basis, I ask to speak to a manager. Only once have I been told I would be declined after speaking to a manager. So, I canceled my application immediately so no ChexSystems was ever run. In every other case, the manager has stated they are simply looking for bad banking behavior (bounced checks/money owed to other banks/etc). When I assure them this is not an issue, I have proceeded successfully.

According to this Reddit post bankers always had the power to override a chexsytems inquiry:
https://www.reddit.com/r/Banking/comments/z3x01k/could_any_bank_still_approve_a_checking_account/

Also I had one incidence where I was joining a new FI and changed my mind before completing the online application. This FI already ran my Chexsytems report. Fortunately, I was able to get that one removed.

Kaight | Nov 28, 2022 | 1,192 posts since 2011

I don't know when it will happen. But at some point all that dry powder will explode into a bunch of new five year CDs, quite possibly at new (to me) financial institutions. I certainly hope Chexsystems does not separate me from those anticipated opportunities.

I wrote those words here, on this thread, exactly one month ago in response to a post from GH1. Little did I anticipate at the time the high level of prescience therein contained. This just happened to yours truly, and I was shocked. Here is the story in the most condensed form I'm able to provide. I hope this helps someone:

I found what I thought was a good rate on a two year CD. The credit union is not local to me, but there is a local branch. This is not a credit union anyone may join, but I was already a member having joined years ago. While my account there has been inactive most recently, I have had any number of CDs in the past with this CU.

I wired funds into my savings account, a large amount of money. Then I visited that local branch to open the CD. All was going along well as the rep took care of my request. Then, suddenly without warning, she told me she was sorry but my new CD account could not be opened. She handed me a sheet of paper listing the three major credit bureaus and, listed last, ChexSystems. And it was the ChexSystems box which alone was checked. I had failed to pass muster at ChexSystems and the CU was denying me opportunity to open a new CD account at a darn nice rate of interest, telling me I must telephone ChexSystems to learn why. They would not tell me why I was being denied.

I went along for a short while with the telephone call. Have you ever called ChexSystems? The customary drone answered, a fellow with a heavy Indian accent. He was completely unwilling to help in any manner whatsoever.

Fortunately for me the branch manager became involved and even spoke on the call, to no avail at all of course. But she must have done something, perhaps made a command decision, and suddenly the ChexSystems attack on my desire for a new CD was overridden, overcome, however you wish to express it. After much angst and concern I was allowed in the end to open the CD account at a darn good rate.

When I responded to GH1 (see above) I was too limited in my thinking. I was worried about opening accounts at new (to me) financial institutions. I never dreamed ChexSystems represented a threat to the opening of accounts at a CU where I am a long time member with a spotless record. This has been a most edifying experience for me, and it came right out of "left field". I didn't think my hatred for ChexSystems could deepen. But it has. It appears now almost inevitable that ChexSystems is going, at some point, to cost me real money despite my spotless banking record and the fact I have done nothing wrong whatsoever. Heck, it very nearly happened earlier today!

rockies | Nov 28, 2022 | 295 posts since 2018

@Kaight
Congratulations on your ultimate successful outcome! I suspect you are being a bit humble here. If I had to guess, you were prepared, objective, professional and, appropriately, concerned.....as opposed to wildly angry, accusatory, or intimidating. I think when we can reach a decision maker and make a calm, rational point, most will override the ChexSystems negative auto-decision. But, it is a huge waste of time and energy on the part of the depositor.....especially those of us "with a spotless record." As you eloquently put it, I too fear it may "cost me real money" if I run into a decision maker who is unwilling or unable to override ChexSystems.

Choice | Nov 29, 2022 | 937 posts since 2020

Kaight…there are two major issues…what a FI does with the info that that FI (and other FIs) do with the info from ChexSystems AND the knowing result of any FI using the data and impacts on credit score…the former and latter are a material aspect and the failure to disclose is fraud!

GH1 | Oct 28, 2022 | 1,053 posts since 2017

I had same issue. Opening different accounts as the rates rise. Not realizing they run check systems. Then all of a sudden even on a fi that I have a account with. Says denied to many inquiries. I called the bank they said we run everytime u open a account. I said I have a account. They said don't care you can try again in 6 months. I stopped do business with the ones who pull this check systems. Here on the board there are a lot of complaints. Your trying to deposit money not ask them for money. I would call the bank or cu you want to work with ask them if they do that. Checksystem check then look elsewhere. Why do a check system on a cd every month makes no sense and now damaged your credit for a couple months. At a time when rates are going up

Kaight | Oct 28, 2022 | 1,192 posts since 2011

Thank you, GH1, for your thoughtful post. It was a needed dope slap for me, let me tell you. Despite my boundless pre-existing detestation of Chexsystems, I had failed to focus on the even larger threat profile it presents in light of circumstances right now. When that wonderful, but short lived, CD deal becomes manifest within today's rate turbulence, Chexsystems could be the reason we miss out. Of course that is, and always has been, true. But when the rate peak occurs, whenever that is, our need to "strike while the iron is hot" will be particularly acute. And Chexsystems could so easily become the spoiler.

Personally, right or wrong, I'm accumulating rather a lot of "dry powder" at this time. After all, the Fed continues to promise higher rates. And, again right or wrong, I'm not buying talk of just fifty basis points in December.

I'm don't know when it will happen. But at some point all that dry powder will explode into a bunch of new five year CDs, quite possibly at new (to me) financial institutions. I certainly hope Chexsystems does not separate me from those anticipated opportunities. If it does, I cannot tell you (for fear of censorship) how pissed off I will be.

MY2CENTSWORTH | Oct 28, 2022 | 436 posts since 2016

My experience with Chexsystems goes back a few years now and I honestly had never even heard of them before that. I tried to open a CD at Popular Direct and it was denied. Mind you I was already a customer and had 3 or 4 other CD's with them at that time. It was certainly baffling to me for all the various reasons I have read about here on DA as well as other places, but I got Chexsystems to send me the data that they had on me just so I could learn what was on there and check the accuracy of it all. In the meantime I had already called Popular Direct and spoke to them about the reason for rejection, which they didn't know details of, and they immediately opened the CD that I had intended to without any questions or further delay. I think all of us will be plenty PO'd if when the right time and place comes along to open new CD's at existing FI's or a new FI that something like a flag from Chexsystems prevents it. Incidentally, I have some 16 and counting FI's that I currently do business with ranging from a checking account that is under $10 up to almost $500K on deposit and everything in between and have been flagged by just that one Checksystem "check" a few years ago. I better go and find some wood to knock! HAPPY HALLOWEEN Y'all!

CDsuckers | Oct 29, 2022 | 70 posts since 2022

Checksystems doesn't damage your credit.

GH1 | Nov 28, 2022 | 1,053 posts since 2017

Absolutely it does for a minimum of 6 months. You open 3 accounts then 3 fi offers a special you are denied because the system says unopened 2 accounts ,. You miss the special. That is damage plain and simple you have lost earnings damage YES

Choice | Nov 28, 2022 | 937 posts since 2020

It’s the conspiracy leading to/of denial that is the illegal combination/tying arrangement…we need the terms of the operative agreements…anyone?

twinlabs | Dec 3, 2022 | 131 posts since 2022

I used to work for Chex many many (40) years ago. They weren't a very good employer either.....

Choice | Oct 28, 2022 | 937 posts since 2020

And if so…what is the name of this “wonderful” FI?

Intugumbo | Oct 28, 2022 | 41 posts since 2019

I don't feel comfortable in revealing their name right now until I gather more info. Specifically I want to know if it was just me or have they done this to other people.

I wonder what are the FIs' motivation for doing this though? Chexsystems allows you to run inquiries "Inquiries Viewed Only By You". That means only you and the FI see the inquiry. Those type would not harm you when opening other accounts. Maybe Chexsystems charges more for "Inquiries Viewed Only By You". Or maybe "Inquiries Viewed Only By You" does not provide as much detailed info?

Assuming there is no good reason, then any FI that does this is an injurious, slang word for male genitalia, to their customers for absolutely no reason and with nothing to gain.

Infinityy | Oct 28, 2022 | 107 posts since 2020

"Inquiries Viewed Only By You" refers to inquiries not conducted in connection with an account application, such as pre-screening for bank account or credit card offers. Financial institutions can't choose to conduct this type of inquiry for new accounts

Intugumbo | Nov 15, 2022 | 41 posts since 2019

@Infinityy
I am looking at my Chexsystems Disclosure report as I type this. There are two types of Inquiries on the Chexsystems Disclosure report:
1.) "Inquiries Viewed By Others"
2.) "Inquiries Viewed Only By You"

Type 2 don't matter. Type 1 is what screws you over.

Prior to this month, this FI ran a Chexsytems both type 1 and 2 inquiries, for every CD I opened for the five previous months.

I froze my Chexsytems report and opened more CDs, this month, to see what the effects would be. Next I pulled my Chexsytems report again.

There were no type 1 inquiries but more than one type 2 inquiries that were on the day the CD's were opened.

Infinityy | Nov 15, 2022 | 107 posts since 2020

The freeze will block Type #1 inquiries ("viewed by others"), but will generate a flag of its own for the financial institution. How the FI handles that flag is up to them. Some FI's will open CD's with frozen Chex reports for existing customers, but others will require you to unfreeze.

Intugumbo | Nov 15, 2022 | 41 posts since 2019

@Infinityy
Do you know why a FI would run a Type 1 inquiry vs a Type 2 inquiry? What information, if any will be obtained, by a FI for choosing one type or the other?

Infinityy | Nov 27, 2022 | 107 posts since 2020

The FI can't choose what type of inquiry to run. Any user-submitted application will be submitted as a Type #1 inquiry ("viewed by others"). Type #2 inquiries ("viewed only by you") consist of pre-screening offers, automated risk-management systems (Chexsystems has an optional feature that notifies institutions where you recently opened an account, if you apply for another account somewhere else) and Type #1 inquiries that were blocked by a security freeze.

Choice | Nov 27, 2022 | 937 posts since 2020

Infinity…where does this source of knowledge come from? The T&Cs of the agreement between credit reporting agency and user of data? And fee to user is based on level of inquiry? And a user could still label the inquiry anyway it wants, eg dual use? Who regulates that? Thanks

Infinityy | Nov 28, 2022 | 107 posts since 2020

Just from my own personal experience. The fee (for the financial institution) probably depends on the number of inquiries they run. Maybe the fee depends on the type of inquiries as well.

I don't think there is any law regulating manner in which an inquiry is recorded. Chexsystems is considered a specialty consumer reporting agency and subject to the requirements of the Fair Credit Reporting Act.

Choice | Oct 28, 2022 | 937 posts since 2020

Let me try again! “Your” problem is NOT ChexSystems but the entity that turned you down! That FI materially failed to disclose the conditions for opening an account! As a corollary you failed to lock any info from ChexSystems being released! There is no comfort in waiting to see if others come forward…you deserve to know from the get-go!

Intugumbo | Nov 15, 2022 | 41 posts since 2019

@Choice
As you stated if this FI disclosed that they run Chexsytems every time someone opened an CD account I would have never opened any CD's. But, Chexsytems is the one who set this system up. They could change how report Inquiries so that customers with no derogs don't get hurt.

CDsuckers | Oct 29, 2022 | 70 posts since 2022

I was under the impression that financial institutions only ran a Chexsystems inquiry upon opening a new acccount (especially a checking account). So, doing it for opening a new CD when you already have any account just seems strange.

It just comes down to whether or not a financial institution considers you to be a flake if you open too many accounts within a certain period of time. On the other hand, you can consider them to be flakey for having such a policy and not do business with them.

Intugumbo | Nov 15, 2022 | 41 posts since 2019

@CDsuckers
Apparently, there are at least three, that I am a where of that run a Chexsytems Inquiry every time someone opens a CD.
1) The FI I am referencing in this OP
2) The FI GH1 references up thread
3) Hanscom FCU https://www.doctorofcredit.com/hanscom-federal-credit-union-5-apy-on-up-to-6000/#comment-1484542

Kaight | Nov 15, 2022 | 1,192 posts since 2011

Hanscom is a known, horrible, Chexsystems abuser. Or, said another way:

Hanscom has a long record of using Chexsystems data to deny new member wannabes.

I have been aware of this for a while. Guess the word is getting out. I'm not surprised. Hanscom wants stupid sheep as members. Most of Ken's readers, when it comes to banking, are informed and are not stupid sheep. We are not, speaking generally, painting with a broad brush, and acknowledging there might be exceptions, Hanscom material.

Choice | Nov 15, 2022 | 937 posts since 2020

Reading this thread it seems to me that the contractual arrangements for/between the credit agencies/FIs is the driver…pulling a report for “revenue” to the FI, eg a potential loan, is one thing but for merely opening a savings type account is another, eg Patriot compliance. Obviously the credit agency gets paid more for a former pull related to a new loan app.

All of this makes me say that the collusion between those parties and inherent denial to the public of access to FI accounts “if too many accounts opened “ (and future resultant credit opportunities) is a deceptive business practice that needs to be disclosed, stopped and the regulatory authorities can do it, ie not NCUA!

Intugumbo | Nov 15, 2022 | 41 posts since 2019

@Choice
It your interested, The San Francisco Office of Financial Empowerment does a deep dive on the horrors of Chexsytems. Page 11 subheading titled "Ambiguous Impact of Inquiries" is most germane to this discussion. Here is the link:

https://sfgov.org/ofe/sites/default/files/2021-06/Blacklisted-How%20ChexSystems%20Contributes%20to%2...

Choice | Nov 15, 2022 | 937 posts since 2020

Thanks...but if the FI institutions saw no value in having Chex there would be no Chex. FIs are the problem in allowing their "contractors/vendors" do this activity and then the FIs are the ones "blacklisting" (can that word still be used?) the public. CFPB should shut all of this down...those that have been harmed need to consider escalating this!!! I'll repeat from above, "…what is the name of this 'wonderful' FI?"

PS And the Big Three credit agencies have an interest in this too...since they could also be impacted

IGR | Nov 16, 2022 | 580 posts since 2020

It is a systemic issue that lately terns into giant headache.
The issue that can only be addressed Legislatively.
Otherwise, private businesses are free to select their clients in the same way individuals are free to select their vendors, for as long as no discrimination is involved or implied

Ultimately, Deception/Nondisclosure claim may not be made here.
Every FI discloses this practice in boilerplate “Privacy Notice”
Credit report could be frozen, but I don’t believe it is possible to established banking relationship without access to ChexS report.
FIs are using ChexS data to comply with Patriot and FINRA Identity Verification Requirements.
Unfortunately, it impacts even established clients and it interferes with basic banking practices like CD Laddering.
Many FIs have in place single account maintenance system that is unified for all kind of accounts and make nor distinction, between established and new client. And many FIs don’t have a system that allows single request for several new accounts!
The system they have in place just pulls everything that is out there, Credit Report and Score as Chex’s Consumer Report and Score.
We have no way of knowing how Chex’s Score is generated and have limited ability to predict how given FI’s underwriter will evaluate the Reports and Score retrieved.
So it impacts every Depositor, best or worst and every time, approved or denied.
You may shield credit report when opening Deposit account over the phone you deny access to Credit files… you would have make sure to notify of your intent to optout from Overdraft Services.

More often I’m unable to successfully insist that as an established client I don’t need another inquiry against my record… but recent Andrews CD Special was opened without CHexS trace… so far.
I was able to remove several records from my Report when I see multiple inquiries from the same Institution by filling Disputes with ChexSystems and claiming that single interaction with Bank/CU for the purpose of opening multiple accounts should result in single inquiry

IGR | Nov 16, 2022 | 580 posts since 2020

thank you, @Intugumbo for brining to my attention the issues that is important but was not high on my priorities.
I filled with ChexSystems another bunch of the Disputes.
This time about the records where accounts were Denied and no relationship was ever established, but the records of the inquiries are indistinguishable from the records were accounts actually exist currently or existed in the past!
from my experience it takes few weeks for ChexS to complete investigations and reply.
I'll update with the outcome.
Don't yet spin the wheels following, it is cumbersome process.

Kaight | Nov 30, 2022 | 1,192 posts since 2011

Pursuant to my earlier post (28 November) where I reported the account opening problem directly attributable to Chexsystems:

I just received my Chexsystems report. There are no negatives (i.e., fraud, overdraws, returned checks, and so forth) because none exist. I knew that. Only stuff on the report is a detailed history of all my VERY LEGITIMATE AND HONEST banking activity for the last several years. This is nobody's business in my view and should remain private between myself and my bank or CU. Instead some (not all) of my banks and CUs are reporting this honest activity to Chexsystems and they, in turn, make my private banking data available to all of their subscribers. Only dishonest or problematic banking activity should be being reported to Chexsystems. And Chexsystems should not be making my routine, honest, banking activity known to other financial institutions. They are profiting from a gargantuan violation of my privacy!!

BTW, I think someone mentioned a "score". There was no score of any sort mentioned in my Chexsystems report.

Choice | Nov 30, 2022 | 937 posts since 2020

Kaight, and when one takes their auto in for servicing guess who passes along the mileages, etc to those data trackers? I tell them not to input data in their computer

IGR | Nov 30, 2022 | 580 posts since 2020

There is a Consumer Score tabulated by ChexS by some proprietary criteria. It is not available online. you'd have to request it separately and receive by mail

GH1 | Nov 30, 2022 | 1,053 posts since 2017

I agree same here Checksystem report shows only open ing accounts 2 years ago. Why do they care if you have 1 or 20 banks with higher rates

IGR | Nov 30, 2022 | 580 posts since 2020

Unless FIs receive the report in different format to what ChexS shares with Consumer, there is no information whatsoever regarding Accounts.
Unlike Credit Reports Consumer Report only lists the Inquiries. There is no way to see(from the report ChexS sent to me) where those inquiries were resulted in Opened Accounts or Denials. FIs are using ChexS data analytics to predict profitable behavior of Financial Services Consumers, in the same way as in @rockies analogy Best Buy would use Visa's data to decline to Consumer the sale of "well-priced TV" because Visa reports that in the past household electronics were purchased at Walmart

Intugumbo | Nov 30, 2022 | 41 posts since 2019

This link is for Chexsytems Consumer Disclosure report:
https://www.chexsystems.com/request-reports/consumer-disclosure

This link is for the Chexsytems Consumer Score:
https://www.chexsystems.com/request-reports/consumer-score

The Chexsytems Consumer Score arrives by snail mail while the Chexsytems Consumer Disclosure report is online.

Rickny | Nov 30, 2022 | 1,296 posts since 2017

People don't realize how much information is collected by Alphabet and other companies. They monitor and sell information such as
web browsing history.

I was a company that supported IT for a large banks data mining on credit card transactions.

GH1 | Nov 30, 2022 | 1,053 posts since 2017

Ok Ricky. Why do they care if we have 1 or 100 accounts. Except that they want to make money on you. Chase told me. No car loan or house loan with them how can we make money on you

Choice | Nov 30, 2022 | 937 posts since 2020

By borrowing $s from depositors it is able to fund America and its growth (since when is there a need to be a relationship between having CDs and other financial products by one individual?). Oh, I forgot …this is the new Vegas…everything is a profit center …if it doesn’t need any $s, set rates at 0. Finally why should a depositor refer others to that FI…I recall years ago in grad school and ventured down to the main branch of a major bank seeking a “student loan” and sensing a negative environment i opined…“who do you think I’m going to refer future customers/clients to if not a student loan originator?” The loan was funded forthwith…the future is now!

IGR | Dec 1, 2022 | 580 posts since 2020

there is something, I'm not sure how useful...
CSRs consistently ignorant about the difference between Credit Reports and Score from Credit Bureaus trifecta and Consumer Report and Score from ChexS.
Every conversation inevitably shifts into "soft pull" not affecting "credit score".
There is some difference; established membership with Andrews and new CD Account - no Inquiry.
Established membership with Connexus and request for additional Share Certificate Account -
"It is our procedure to pull credit for all of our products. For deposit products, we do a soft pull for a credit check".
I didn't follow up to learn what it means exactly, I let Connexus to lose my business.
SkyOne CU approach seems to be different, more logical and Consumer friendly.
"When applying for the SkyOne primary savings account, SkyOne will pull a soft inquiry one time. Once that is opened and funds have been deposit in the amount you wish to open CD with, SkyOne will not run another soft pull since the membership is already established."
I have no proof yet that this is exactly how it works with SkyOne CU.
To open and fund Share Certificate with the amount I want, I had to do it with two steps.
I'll update on how it works when Secondary Account is opened.
Connexus CU lost my business because its Account application makes no distinction between "Apply for Account" and "Open a New Account".
We need more datapoints on how this issue is approached by different FIs.
I was successful of forcing ChexSystems to remove from my record unnecessary inquiries when "Apply for(Member Share) Account" and "Open a New(Share Certificate) Account" could only be accomplished in two different steps and applications.

Intugumbo | Dec 1, 2022 | 41 posts since 2019

@IGR
Could you elaborate on the following:

I was successful of forcing ChexSystems to remove from my record unnecessary inquiries when "Apply for(Member Share) Account" and "Open a New(Share Certificate) Account" could only be accomplished in two different steps and applications.

IGR | Dec 2, 2022 | 580 posts since 2020

when by "elaborate" you mean to explain how, then I've done it before...
Where multiple inquiries form the same Institution shows up on your record...invariably affecting your Score,
File the complaint with ChexSystems.
Indicate, in your own words, that latest inquiry is related to single engagement to establish the membership and Open and Fund the Deposit Account.
Where desired, you may add the comment about insufficiency and inefficiency of the Inquiring Institution's Application Process.
YMWV!
However, there is no downside of filling the dispute, but as an upside you'll add the datapoint to this forum.
Connexus CSR insists that to Open/Apply for Deposit Account CU inquires
"The credit Bureaus we use are, Transunion and Experian."
I don't give much credit to that notion, Connexus already lost my business, but to create the datapoint I intent to freeze my ChaxSystems Record and then Open/Apply for the Account.

Intugumbo | Dec 2, 2022 | 41 posts since 2019

@IGR
Thanks

planxy | May 3, 2023 | 140 posts since 2013

SkyOne did hard pull on application, requiring me to drive several hundred miles to the "branch" should I dare to try and rise above my caste to join the favored few.

Rickny | Dec 2, 2022 | 1,296 posts since 2017

It all comes down to money. They use information to market products

IGR | Dec 2, 2022 | 580 posts since 2020

@Rickny, don't warry about that...
business is a competition,
they use the information to ensure their profit...
you make sure their profit doesn't come at your cost.
One who knows the game's rules the best, plays the best...
hence, depositaccounts.com

IGR | Dec 5, 2022 | 580 posts since 2020

I have invested insane amount of time dealing with and around CS.
Have learned a lot, but the problem still hasn't solved.
One of problem is inconsistency of CS inquiries and records and another is FI's CSRs lack of understanding and disclosures.
"Soft Inquiry" and "Credit report" is being used interchangeably between Credit Bureaus and CS.
Connexus claims that it ALWAYS does "soft-pull" for new accounts.
SkyOne says that it doesnt run inquiry when New Account gets opened by established Customer.
I put the freeze on my CS Report and applied for both.
Both CUs opened NEW CD Accounts instantly.
Local Bank Branch opened NEW CD Account instantly without any pull - established Customer as well.
My only advise here is that prior to applying for New Account to interrogate CSR and to make them to disclose which exact Report is being pulled.

WARNING - CS allows online freeze of its Report.
The PIN is required to lift the freeze.
CS does NOT allow the PIN to be selected by Customer or generated online!
Unlock PIN would have to arrive via USPS, therefore for the week or so your CS Report remains frozen and you are unable to establish new Banking relationship or perhaps even open New Account!

Choice | Dec 5, 2022 | 937 posts since 2020

I have always frozen my credit reporting agency files by US mail. And I rec'd the pin by US mail. Granted the number of FIs I deal with is small since I've been consolidating accounts/FIs for the last several years "for ease of management." I never use email with them as well as most FIs...why? b/c a lot of them think silence is acceptance and send messages that cannot be responded to, i.e. "do not reply." Hacking of accounts is a non-issue, too.

IGR | Dec 6, 2022 | 580 posts since 2020

it is personal Choice.
Not everyone wants to rush to Postal Office to mail the letter, than wait for 10 days for the mail to be processed. And if you don't know exact agency you would mail 3 letters?

happyharold4 | Dec 11, 2022 | 388 posts since 2022

Choice | Dec 11, 2022 | 937 posts since 2020

Was this when you did or did not have a credit freeze in place…Thanks

happyharold4 | Dec 3, 2022 | 388 posts since 2022

I guess I'm in deep dodo. I've had 7 " no penalty " accounts at Ally and several at Synchrony and have had to close all of them repeatedly over and over as the rates have changed. They both assured me not to worry as their inquiries were, " SOFT HITS " and not affect anything. Well I just got declined from USAlliance for a savings account with no reason yet. After reading this thread, I'm sure Chexsystems is probably the culprit. I have never even heard of Cs before, Living under a rock I guess. I just ordered a copy of my report and score from them. Like many others posting, I have been running a credit score in the 830's range for many years and nothing derogatory and have zero debt and high assets. I'll post up when I receive their report. I wish this site could find a way to post new comments at the top vs the bottom.

Intugumbo | Dec 5, 2022 | 41 posts since 2019

@happyharold4
Call USAlliance and see if they will verify if it is Chex
Run your Chexsytems report for free since you were denied an account.

happyharold4 | Dec 16, 2022 | 388 posts since 2022

Choice | Dec 16, 2022 | 937 posts since 2020

So much for privacy

Rickny | Nov 27, 2022 | 1,296 posts since 2017

I had a problem with a bank that put an incorrect address in my Checksytems account. They then refused to open an account with me. The rep said I had over 30 entries on my Checksytems report. After going to Checksytems who went to the bank who refused to correct the error. I went to the CFPB who went to Checksytems and the bank who wouldn't correct the prior address error. Wrote to the president of the bank. The account opened. The bank went back to Checksytems who still have the incorrect address when you look at the report but supposedly dosen't show up when inquires are made. I just gave up but have had no problems opening new accounts.

I was able to get a copy of my report which looked like it had every bank I did business with. Also mentioned I was a good credit risk.

Kaight | Dec 3, 2022 | 1,192 posts since 2011

Pursuant to a few other comments above:

I was going to post here negatively regarding Ally Bank, a HUGE ChexSystems offender in the past. Glad I didn't.

After receiving my ChexSystems report can tell you Ally Bank appears to have backed off its ChexSystems onslaught. This was good news and came as a surprise to me. I have done a mess of Ally Bank account openings recently. There was not a single mention of any of them on my ChexSystems report.

Good on Ally Bank. Maybe they realized the damage they were doing to their customers in past years and decided to change course. Hope so.

NFO | Dec 18, 2022 | 66 posts since 2022

Agree. I've had multiple Ally accounts over nearly a decade. Just ran my ChexSys report, and there's nothing about it.

GH1 | Dec 19, 2022 | 1,053 posts since 2017

Yes it is hurting you. Why is this legal. If I open 5 small cds I get penalised

JeffinEasternFL | May 2, 2023 | 744 posts since 2020

And if you wanna occasionally "check your Chex" -recommended, just like your credit report(s), etc., CHEX systems will allow you to register as a user but, the system apparently has been down for almost a week so you can't see anything anyway.

OrderlyChaos | May 2, 2023 | 30 posts since 2018

You should see your LexisNexis Consumer Disclosure Report (if you have not had the opportunity) - an eye opener to say the least...:)

Rickny | Nov 16, 2022 | 1,296 posts since 2017

Look what else banks do when opening an account:

How Does the Patriot Act Affect My Bank?
Bank and Patriot Act
The Patriot Act does not require banks to notify you that your account is being investigated for suspicious activity.

What to Expect When You Open a New Bank

?

A banker is also required to check your name against the following lists:

FBI Wanted Fugitives, Most Wanted Fugitives and Most Wanted Terrorists
Specially Designated Nationals and Blocked Persons
Wanted Fugitives of the Naval Criminal Investigative Service
Top 15 Most Wanted and Major Fugitive Cases of the U.S. Marshals Service
Major International Fugitives Wanted by the U.S. Drug Enforcement Administration
Most Wanted by the U.S. Customs Office, U.S. Postal Inspection Service and the U.S. Secret Service.
Most Wanted by the Bureau of Alcohol, Tobacco and Firearms.
Top 10 Fugitives of the Air Force Office of Special Investigations

IGR | Nov 18, 2022 | 580 posts since 2020

That has nothing to do with the issues of ChexSystems.
Compliance and Civil penalties for non-Compliance are the Financial Industry's one of the biggest non-revenue generating cost centers. It only impacts the Depositors across the board through lower Deposit rates.
We will never know what Banks do, no mater of the exact language of the Regulations or the summaries of internet bloggers. if you ask Bank's Chief Compliance or Risk Management Officers or General Legal Councilor they will tell you that the Bank's standard of Compliance is "Due Diligence", which could be interpreted as anything reasonably possible and available, above and beyond minimum requirements.
I am not a Legal Scholar to explain...
The Compliance was Legislated and was supposed to be implemented in the way that it is does not affect law-abiding Customers of Financial Industry.
Until Private enterprises such as ChexSystems get hold of your personal data and on the side of Compliance sell its Private assessment of each potential, or even established Customer as a Revenue generating client( as a report and score)
ChexSystems under pretense of National Security Interest helps Banks, as you said "to check your name"... and your banking activities which Banks use to predict how much Income/Profit any given Account Applicant expected to generate.
After the sale, reporting agencies are free and clear, it is for the Financial Institution to decide independently of who to accept as a Customer
Privacy Protections in the USA are among the weeks in the "Free World" and that helps to make US Financial System to be the strongest on the Planet.
The only way to change it, is to write the letter to your elected representative.
Every time I see the opportunity to open new account, i have to calculate the chance of not only the rejection but also an impact on next opportunity. Many times i decide against and miss the opportunity in favor of avoiding added risk of next opportunity failure.
Any idea how to deal with that?

IGR | Nov 21, 2022 | 580 posts since 2020

Upon checking, my previous round of disputes with ChexSystems resulted in 43 point Consumer score increase. ChexS has not yet investigated to my latest disputes.
stay tuned if interested

Choice | Nov 27, 2022 | 937 posts since 2020

Related thereto is part of a news article today, “Starting Jan. 1, the notice said, a FICO- scored joint (spouses) credit report is rising to $74.53 from $39.01. That’s a 91% price increase or nearly double the price….”

Apparently this is related to loan applications…perhaps across the board increases will slow down requests for some reports

NFO | Dec 18, 2022 | 66 posts since 2022

For me, this is filed under "learn something new"...I'd never heard of this. While I'm probably not as active as some here in terms of chasing yields, I've opened and closed a series of accounts over the last decade at well-known banks and CUs, along with some smaller institutions that probably use this. My credit score is perfect, never bounced a check or overdrawn an account, and on the rare occasion a credit card payment showed up a day or two late, the bank waived any penalty. I requested the ChexSystem consumer disclosure and found...nothing. I can't say exactly what triggers a negative report there, but it's not routine bank business such as opening a CD.

Intugumbo | May 1, 2023 | 41 posts since 2019

@NFO
Three things I want to point out.

1.) Chexsystems inquiries supposedly have a shelf life of three years.... but don't quote me on that! If you closed those accounts over the last decade, like you wrote, then it is quite possible that the Chexsystems inquiries fell off your Chexsystems consumer disclosure by the time you checked it.

2.) What makes hard Chexsystems inquiries so insidious is your impeccable banking records does not matter. THE INQUIRY ITSELF negatively marks you, like the Scarlet Letter, by simply existing in your Chexsystems consumer disclosure. As noted in this thread financial institutions can and have denied people from opening accounts for simply have to many Chexsystems inquiries.

3.) I was like you "For me, this is filed under "learn something new"...I'd never heard of this" until Chexsystems effed me with no Vasoline. Hear is the most frightening aspect. I am an active rate chaser, credit card cash back seeker and the occasional bank account sign up bonus chaser. I regularly lurk and occasionally comment on websites like depositaccounts.com, myfico.com, doctorofcredit.com, flyertalk.com (MS section), etc. Yes I heard about Chexsystems. But did not pay it no mind because I never bounced a check or burned any bank or credit union. That was okay until it was not.

I consider myself and the participants of this website and the others mentioned earlier, in this post "informed". Can you imagine what the uninformed masses, go through that never heard of Chexsystems and unaware how munch power this company has over their lives?

IGR | May 2, 2023 | 580 posts since 2020

1.file complaint with ChexS, FI had no reason inquire Consumer record for each additional account, just indicate in complaint that you were established customer and that the inquiries were redundant.
2. freeze your ChexS file. you should have no problem opening additional Deposit accounts with FIs where personal data is populated from existing FI record.
3. request ChexS score

Intugumbo | May 2, 2023 | 41 posts since 2019

@IGR
I did file a CFPB complaint for these Chexs inquiries but lost. I did freeze Chex and request a score.

IGR | May 2, 2023 | 580 posts since 2020

You didn't lose. CFPB rarely take enforcement action. CFPB forwards the complaint to the vendor, and that forces some response from the people in charge. Vendors don't like it at at all. in essence CFPB runs Vendor Score. More Complains are logged against the Vendor, more attention and scrutiny it gets from the Regulator!

I need to correct myself... what was meant, is not the Complaint, though it helps, but the Dispute with ChexS.
It is laboring and time consuming, but when i got myself persistently invested into the effort I had multiple inquiries moved from "seen by others" to "seen only by you"
That and me posing applications for new accounts at FIs where I am not a Customer, resulted in the increase of Consumer score from 40 to 80 points for different Consumer IDs.

Intugumbo | May 2, 2023 | 41 posts since 2019

@IGR
I myself have been successful in removing Chex inquiries. Just not with the original financial institution that I started this thread about last year.

CuriousDave | May 2, 2023 | 233 posts since 2018

If you have a checking or savings account with that same FI, there is a risk for the FI that you will become overdrawn on one or more of those accounts because of a unlilateral action you take without their knowledge and until it may be too late for them to recover money taken out fraudulenty. There is clearly no such risk on the CD because the investor cannot withdraw money before maturity without going through an FI employee. If all you have is a CD, it’s hard to make sense of their needing to use Chexsystems or if doing any kind of pull.

Intugumbo | Jun 11, 2023 | 41 posts since 2019

@CuriousDave
I keep my Chexsystems frozen and only thaw when needed. As a result the FI in question, from the original post, now does a "soft pull" when I open CD's. That is fine by me. They should of did that from the jump.

This has had real world negative consequences for me. Denied highest rates, and bank account sign up bonuses.

JeffinEasternFL | Jun 11, 2023 | 744 posts since 2020

Yep, very common

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