Chexsystems Does Inquiry On A Beneficiary

DepositGuy835 | Feb 21, 2023 | 21 posts since 2015

I opened an IRA and listed my wife as beneficiary. The bank did a chexsystems inquiry on my wife (and me too) even though she has never initiated any type of business with the bank. Can a bank do a hard chexsytem inquiry on someone who may not even know they are a beneficiary?

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Answers

greenback | Feb 21, 2023 | 55 posts since 2022

That is surprising. Call the bank and ask to speak with a supervisor to see why they would need to do that for adding the beneficiary. Some banks even give an option to not mention the SSN for a beneficiary but looks like you provided the SSN that made their job even easier.

DepositGuy835 | Feb 22, 2023 | 21 posts since 2015

I did call bank and they said they do inquiry because if I die the beneficiary would own the account. I have never seen this before. Anybody could be a beneficiary without even knowing it and then have inquiries.

Infinityy | Feb 22, 2023 | 107 posts since 2020

I think it's illegal, because the bank does not have a permissible purpose under FCRA to obtain a consumer report on a non-customer. You could talk to a FCRA lawyer and see whether they think you have a case.

GH1 | Feb 22, 2023 | 1,053 posts since 2017

Nothing surprises me with that company. So if your wife had bad credit what u would be denied the account?

CuriousDave | Feb 22, 2023 | 233 posts since 2018

For that matter, based on negative information coming from the hard pull on a beneficiary, can the FI then decline to open an IRA account for the applicant?

mffarrell | Feb 22, 2023 | 95 posts since 2018

I still don’t understand why FIs require a credit check when you are lending them your money. chexsystems Is FUBAR, IMO. I have a credit score of 850, and was turned-down when trying to open new accounts because I opened too many, according to chexsystems. This was the last cycle in 2018. This cycle I have stuck with mainly brokered CDs, and using some of my current CUs, like GTE, Navy and so on.

GH1 | Feb 22, 2023 | 1,053 posts since 2017

I agree same thing happened to me. It is so convenient to use the brokered cds at your trading account. No nonsense of these credit checks to deposit money.

MikeQ | Feb 22, 2023 | 7 posts since 2022

An IRA at a bank? ??

choice1 | Feb 22, 2023 | 370 posts since 2023

Perhaps opening an IRA first is a course of action at new FI?

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