Denied due to Chex inquiries.

[iCarl]

I opened an account at local St. Landry Bank yesterday. The teller commented on my numerous Chex inquiries but opened the account. I received my temporary checks and everything.

 

A few minutes later, I was called back to the bank because the main office decided to close the account due to Chex inquiries.

 

They also said I was banned from ever being a customer of their bank.

 

Maybe they think I launder money? LOL

[mca]

When a person applies for an account at a bank that uses Chexsystems and is denied, it shows up as an inquiry on your report. Too many inquiries on your report can cause Chexsystems to "flag" your account for suspicious activity.

 

http://www.chexsystemsvictims.com/ChexSystems_Inquiries.html

[Pondus.Natrii]

When a person applies for an account at a bank that uses Chexsystems and is denied, it shows up as an inquiry on your report. Too many inquiries on your report can cause Chexsystems to "flag" your account for suspicious activity.

 

http://www.chexsystemsvictims.com/ChexSystems_Inquiries.html

A few minor but possibly important points, with the many bank bonus temptations out there:

 

A Chex inquiry is recorded for merely attempting to open an account with a bank using Chex, regardless of being approved or denied by that bank, correct?

 

What conditions/events related to too many inquiries may result in the flagging for suspicious activity? For example, is that flagging potentially triggered only while trying to open another account, or can it also occur during some "review" not related to an attempt to open yet another account? (If there are such subsequent Chex reviews of existing accounts, then the sheer number of existing accounts would presents another risk.)

 

TIA

[mca]

Yes chexsystems will show each bank that you apply to as an inquiry on the report regardless of approval or denial. The only way to assure this to not be tracked is to NOT apply at banks and credit unions that use chexsystems. Instead find banks that use telecheck or a credit report. Another problem is that they also track accounts through check ordering. So unfortunatelty even if you open an account at a bank that does not use chexsystems, they may still find out about the account when you order checks.

 

Chexsystems has been known in more than one instance to have contacted a bank realizing an account has been opened just from the customer simply ordering checks. There have been times when Chexsystems has even suggested to the bank that they close the account because they felt the customer was a potential risk etc. Here is a sample report from chexsystems that shows the check ordering history on it. So even if you have opened an account at a non-chex bank, it is still very important not to order checks at one of these companies. Sometimes a bank manager will make an exception and open an account but when checks are ordered and chexsystems is alerted to it, they may recommend that it was a mistake.

[Pondus.Natrii]

Thanks, mca. For more on the subject from the bonus chasing perspective, I found the following depositaccounts.com post to be informative:

 

link