No negative record with Chex but still being declined

[crushd]

Recently, Ive been declined at a few banks due to ChexSystems. However, I do not have a negative record with Chex, only inquiries. I recently moved, so suspect the real reason is because of an address mismatch. Chex, upon calling them, insist they dont tell a bank to approve or decline anyone. However, on the printout at the bank, the report from Chex said "decline". Accordingly, Chex is lying when they claim they dont tell a bank to approve or decline someone for an account. The banks point the finger at Chex, only telling me that Chex declined me without being more specific, telling me I need to order my report from Chex. Chex says I have no negative record, blaming the bank.

 

At any rate, what should I do? I have clean credit with a 790 credit score. I dont owe any banks any money, so there is nothing to pay off. Do I have to wait a month or so for my addresses with the credit card companies sync up so that when a bank puts my name through Chex the next time, the addresses match, and thus dont get a decline?

 

Anyone else have this problem of being denied by a bank because of Chex, EVEN THOUGH YOU DONT OWE ANY BANKS MONEY, NEVER BOUNCED A CHECK, DONT HAVE A NEGATIVE RECORD W CHEX - ONLY INQUIRIES?

[mca]

Recently, Ive been declined at a few banks due to ChexSystems. However, I do not have a negative record with Chex, only inquiries. I recently moved, so suspect the real reason is because of an address mismatch. Chex, upon calling them, insist they dont tell a bank to approve or decline anyone. However, on the printout at the bank, the report from Chex said "decline". Accordingly, Chex is lying when they claim they dont tell a bank to approve or decline someone for an account. The banks point the finger at Chex, only telling me that Chex declined me without being more specific, telling me I need to order my report from Chex. Chex says I have no negative record, blaming the bank.

 

At any rate, what should I do? I have clean credit with a 790 credit score. I dont owe any banks any money, so there is nothing to pay off. Do I have to wait a month or so for my addresses with the credit card companies sync up so that when a bank puts my name through Chex the next time, the addresses match, and thus dont get a decline?

 

Anyone else have this problem of being denied by a bank because of Chex, EVEN THOUGH YOU DONT OWE ANY BANKS MONEY, NEVER BOUNCED A CHECK, DONT HAVE A NEGATIVE RECORD W CHEX - ONLY INQUIRIES?

 

Too many inquiries can cause a fraud alert on your chexsystems report and yes many banks will deny you for that reason. Chexsystems is a credit reporting agency and banks technically do not tell them or can determine for them if they are able to open an account or not. The bank could have easily decided to approve you regardless of the recommendation by chexsystems. Many banks will not open an account unless chexsystems says approve.

 

Depending on where you live, I can make a suggestion of a bank that will open an account for you.

[Burgerwars]

I suggest waiting three full calendar months before applying for anything. Those Chex inquiries can stop you in your tracks.

[hrguy]

yup! I keep getting denied by JFCU because of too many chex inquiries. Is there a way to have these inquiries deleted?

[crushd]

Thanks but I already have a great many bank accounts. I want some that I dont already have, to add to my collection. In fact, I probably have more than anyone else on this board, since Ive been collecting them for over 10 years.

 

Im an old-timer, that knows when NCPS and CO Cheque Connection were in existence.

 

As far as your statement that Chex does not tell the bank or determine for them if the bank can open my account or not, I disagree. Maybe you meant in terms of ordering them what to do, instead of recommending? While my consumer report lists only inquiries, with no money owed, I still get denied BECAUSE Chex tells the bank to decline me, after the bank runs my name. I have some of the reports from the banks, that gave me a copy, that said "DECLINE" as the recommended action. When I call Chex, they lie, falsely claiming they dont tell the bank to deny me. Of course, some banks will override the recommendation and open my account anyway, because they see there is no negative record, despite being slammed with a decline.

 

Aside from that, is it legal for the CRA, like Chex, to be reporting everything fine in the report to me, but saying my SSN has a discrepancy or that I should be declined?

 

What about showing inquiries from ABC Bank on the report they give to the bank that runs my name, while ABC Bank is not on my own report? If an inquiry from ABC Bank shows up on the new bank acct Im trying to open, that inquiry should also be showing up on my own report, shouldnt it?

 

Too many inquiries can cause a fraud alert on your chexsystems report and yes many banks will deny you for that reason. Chexsystems is a credit reporting agency and banks technically do not tell them or can determine for them if they are able to open an account or not. The bank could have easily decided to approve you regardless of the recommendation by chexsystems. Many banks will not open an account unless chexsystems says approve.

 

Depending on where you live, I can make a suggestion of a bank that will open an account for you.

Edited December 16, 2012 by crushd

[crushd]

I suggest waiting three full calendar months before applying for anything. Those Chex inquiries can stop you in your tracks.

 

In some cases that is true for the 90 day rule. However, in others, they even look back more than 90 days, reciting back that I have 100+ inquiries. I dont have 100+ inquiries in the last 90 days, but do have that many if looking back longer.

[crushd]

I suggest waiting three full calendar months before applying for anything. Those Chex inquiries can stop you in your tracks.

 

Ive always had a large # of inquiries because I open many accounts all the time for the account opening bonuses, for example. It seems that the problem is that because I moved to a new state, and changed the address on my old accounts out of state into my new state, SOME of those re-run my name through Chex, using my original DL I gave them months or years ago. That DL # seems to be causing a problem with my NEW DL # in my new state, because, and Im speculating, that Chex thinks perhaps there is ID theft or something, since the old accounts are inputting my old DL and the new accounts for which I apply are using my NEW and current DL. So, of course the DL # and states are in conflict. I think this is what is causing Chex to decline me, even though I dont have any negative record or any negative marks on my Chex report and no negatives on any of my other credit reports. If I go in person, they usually approve me for my new accounts, even though the written Chex printout says the bank should "decline" me. However, if I try to open online, because Chex is reporting to decline me, and the bank doesnt have me in front of them in person, they usually decline me, even on one where Ive been an existing bank customer in always in good standing for over 5 years.

 

One of my old bank accounts, where Ive had a savings account for 5 years, rejected me for trying to open a new checking account with them. They report that they cannot open my checking acct due to info reported by Chex. I ask them what info. They said they cant tell me, and that I need to order my report from Chex to find out. However, when I get my Chex report, as I suspected, there is NO negative info. So why am I being denied when I do not have anything negative? What can I do about this, other than, as you suggest, waiting for 3 months? And why do you suggest 3 months and not a different length of time?

Edited December 30, 2012 by crushd

[KYBOSH]

Wow i never knew chex made a recommendatio to banks to approve or decline. Thats pretty worrisome.

[Burgerwars]

I suggest waiting three full calendar months before applying for anything. Those Chex inquiries can stop you in your tracks.

 

Ive always had a large # of inquiries because I open many accounts all the time for the account opening bonuses, for example. It seems that the problem is that because I moved to a new state, and changed the address on my old accounts out of state into my new state, SOME of those re-run my name through Chex, using my original DL I gave them months or years ago. That DL # seems to be causing a problem with my NEW DL # in my new state, because, and Im speculating, that Chex thinks perhaps there is ID theft or something, since the old accounts are inputting my old DL and the new accounts for which I apply are using my NEW and current DL. So, of course the DL # and states are in conflict. I think this is what is causing Chex to decline me, even though I dont have any negative record or any negative marks on my Chex report and no negatives on any of my other credit reports. If I go in person, they usually approve me for my new accounts, even though the written Chex printout says the bank should "decline" me. However, if I try to open online, because Chex is reporting to decline me, and the bank doesnt have me in front of them in person, they usually decline me, even on one where Ive been an existing bank customer in always in good standing for over 5 years.

 

One of my old bank accounts, where Ive had a savings account for 5 years, rejected me for trying to open a new checking account with them. They report that they cannot open my checking acct due to info reported by Chex. I ask them what info. They said they cant tell me, and that I need to order my report from Chex to find out. However, when I get my Chex report, as I suspected, there is NO negative info. So why am I being denied when I do not have anything negative? What can I do about this, other than, as you suggest, waiting for 3 months? And why do you suggest 3 months and not a different length of time?

 

It may be something other than Chex that got you declined. I remember reading about some aggregater service (not EWS) out there causing people issues. The name slips my mind. I still suggest not opening accounts close to each other. Especially with you moving around.

I also had a checking account immediately closed on me that I opened online (US Bank). They refused to tell me why they closed it. They later said I needed to apply at a branch. I then did with no problem.

[crushd]

Wow i never knew chex made a recommendatio to banks to approve or decline. Thats pretty worrisome.

 

If you ask Chex on the phone or read their website they will LIE and tell you they do not tell a bank to approve or decline. However, Ive SEEN the report printouts in the bank, when attempting to open a new account. The bank can still open your account anyway, but its an extra hurdle to overcome when Chex IS TELLING THE BANK to decline you in opening a new account The report the bank showed me says "Recommended action: Decline, give adverse action notice to consumer, and check the box next to ChexSystems as being the source of the information."

 

When you get declined, ASK the bank for a copy of the report and if they wont give you a copy ask them to at least let you see it.

[ArchonInitiative]

Look at it this way: Chexsystems charges the financial institutions fees for their services. Their services include keeping records of deposit account activity, and making "recommendations." They can be legal nits if they want, but constructively, they are giving the institutions their recommended course of action every time they send their response. They try to protect themselves from any legal repercussions by making their blanket statement of not actually making the determination.

 

I don't go back and forth with them over those interpretations of what constitutes "instructions" or whatever. I simply make sure that they have up-to-date information on me. Also, I keep track of which banks will forgive a Chexsystems entry or two.

Edited December 31, 2012 by ArchonInitiative

[mca]

Chexsystems is a credit reporting agency.. technically they do not make the decision for the banks but most banks will use their reporting to make that determination. There are some banks that use chexsystems that will make exceptions depending on what the report actually says: fraud, account abuse, amount of money showing as owed etc

 

With that said, there are some banks that will not open an account for a person reported to chexsystems regardless of what the report shows. If you are reported, you are denied

[crushd]

Archon,

 

"They try to protect themselves from any legal repercussions by making their blanket statement of not actually making the determination."

 

How does that protect themselves, because Chex IS in fact making the determination. Chex is lying to consumers and thats what is wrong. Chex is making the determination and recommendation by telling banks to DECLINE, then lying about that by claiming they dont tell a bank to approve or decline. Of course, the bank can accept the recommendation to deny or instead override the recommendation/determine and open the account anyway, even though Chex recommends the account be DECLINED.

Arent the CRAs, like Chex, supposed to be only reporting the factual information in your file, and giving the complete information? Why are they advising a bank to decline you, yet not include that same info in your report to you that they are telling banks to decline you?

 

 

 

MCA, I understand, SOME banks will still open your account even if you have some negatives on your report. However, I am not talking about being denied when you have negatives on your Chex report. If you have a negative record, and they dont open your account, I think thats fair. If you DONT have any negatives, the bank or credit union shouldnt be denying the opening of your account. Im strictly talking about being denied when you DONT have any negatives and instead only have inquiries, is unfair. Id like to keep THIS discussing thread strictly about being denied even though you dont have ANY negatives on your Chex report and the focus on that.

Edited January 2, 2013 by crushd

[mca]

Archon,

 

"They try to protect themselves from any legal repercussions by making their blanket statement of not actually making the determination."

 

How does that protect themselves, because Chex IS in fact making the determination. Chex is lying to consumers and thats what is wrong. Chex is making the determination and recommendation by telling banks to DECLINE, then lying about that by claiming they dont tell a bank to approve or decline. Of course, the bank can accept the recommendation to deny or instead override the recommendation/determine and open the account anyway, even though Chex recommends the account be DECLINED.

Arent the CRAs, like Chex, supposed to be only reporting the factual information in your file, and giving the complete information? Why are they advising a bank to decline you, yet not include that same info in your report to you that they are telling banks to decline you?

 

 

 

MCA, I understand, SOME banks will still open your account even if you have some negatives on your report. However, I am not talking about being denied when you have negatives on your Chex report. If you have a negative record, and they dont open your account, I think thats fair. If you DONT have any negatives, the bank or credit union shouldnt be denying the opening of your account. Im strictly talking about being denied when you DONT have any negatives and instead only have inquiries, is unfair. Id like to keep THIS discussing thread strictly about being denied even though you dont have ANY negatives on your Chex report and the focus on that.

 

Yes Chexsystems is UNFAIR.. and yes it is crazy that they send the banks a denial code based on too many inquiries, and even worse, too many inquiries can also set off a fraud alert on your report.

 

We believe Chexsystems is not a fair system.

 

 

Many have objected to its reporting practices.

Positive information is generally not reported to ChexSystems. If you have never had any incidents of mismanagement, you probably do not have a ChexSystems report.

They state the system does not report fairly, and unlike credit bureaus which have both positive and negative information on your credit report;

Chexsystems only contains negative information. This jeopardizes your reputation as a consumer, when you would otherwise be qualified to open checking accounts

 

Some inquiries might be able to be deleted.. depending on how they are reporting.

 

Inquiries Not Initiated By Consumer Action refers to inquiries resulting from transactions you may not have initiated, so you may not recognize the source. Members with permissible purposes include current creditors, pre-approval creditors, and potential investors trying to assess risks. They report these requests only to you as a record of activities, and they do not include any of these requests on credit reports to others.

 

Under the federal Fair Credit Reporting Act (FCRA), consumer credit reporting agencies are permitted to include your name on lists used by creditors or insurers to make "pre-screened" offers of credit or insurance that are not initiated by you. The FCRA also provides you the right to "Opt-Out", which prevents consumer credit reporting agencies from providing your credit file information for "pre-screened" offers. If you choose to opt-out, your name and address will be removed from the lists these offers are based on. You may opt-out with the nationwide credit bureaus at 1-888-5 OPTOUT (1-888-567-8688). You may opt-out with ChexSystems at 1-877-OPTOUT 5 (1-877-678-6885).

 

 

Inquiries Initiated By Consumer Action refers to inquiries resulting from a transaction initiated by you. These include applying for a credit card or completing an application at a financial institution. Please note that the inquiries are part of your credit history and may be included in our reports to others. These inquiries can be viewed for ninety days up to three years.

 

You can not dispute the Inquiries Not Initiated By Consumer Action

 

You can dispute the Inquiries Initiated By Consumer Action

 

If you have an inquiry on your report that shows up under those initiated by a consumer action and you did not authorize the bank or company to do so, you can dispute it and they will have to remove it if they can not prove it was authorized.

Edited January 3, 2013 by mca

[EricPost]

Chex does not tell a bank to approve or decline you. Here's what happens.

 

When a bank signs up for the service, Chex asks them to set a threshold number. This is a figure that Chex computes based on your history with them.

 

To simplify it a bit, let's say it's a scale of 1 to 100.

 

The Acme Bank signs up and says my threshold is 75. This way any report having 75 or less comes back as decline

 

Another bank say Coyote National Bank, may say, make 89 my threshold. This way any report with 89 or less comes back as decline.

 

As always your bank can over ride this. It's up to them. But it's the bank, not Chex that decides at what point to decline you.

[crushd]

EricPost,

 

Thanks for the reply. However, I disagree with something you said, "Chex does not tell a bank to approve or decline you."

 

Bank runs my name through ChexSystems

Bank receives a printed report from Chex while Im at the branch. They show me the report. Chex is making the recommendation to decline me and to provide an adverse action form.

The one telling the bank to decline me is Chex. The bank is not telling themself to decline me - Chex is.

 

How can you say, "Chex does not tell the bank to approve or decline me," when the report the bank receives from Chex tells the bank to decline me?

I have no bankruptcies, no NSF activity, no money owed, no negative record, no fraud alerts. All I have are inquiries.

 

If Chex is not the one behind the report recommending that I be declined, then who is?

[BRBiz]

Ericpost's reply actually makes sense. If Chex uses a scoring a system a lot of inquiries would bring your score down just like your actual credit reports. And at the end of the day it would be the banks decision at what score they want to approve or decline some one based on what they have set up already with Chex. Of course they could override ride if they wanted to. And yes Chex is saying no because that was what that bank wants for a response from them for a certain score.

 

You say you don't have any negatives listed but in fact you kinda do in the eyes of Chex and some banks.. TO MANY INQUIRIES! Just like your normal credit reports to many inquiries hurt your score. As mentioned its not a fair system but it is what it is and having a bank account is a privilege not a right just like a lot of other things in life.

 

I don't know how often your opening new accounts but slow down!

[trancer5007]

Recently, Ive been declined at a few banks due to ChexSystems. However, I do not have a negative record with Chex, only inquiries. I recently moved, so suspect the real reason is because of an address mismatch. Chex, upon calling them, insist they dont tell a bank to approve or decline anyone. However, on the printout at the bank, the report from Chex said "decline". Accordingly, Chex is lying when they claim they dont tell a bank to approve or decline someone for an account. The banks point the finger at Chex, only telling me that Chex declined me without being more specific, telling me I need to order my report from Chex. Chex says I have no negative record, blaming the bank.

 

At any rate, what should I do? I have clean credit with a 790 credit score. I dont owe any banks any money, so there is nothing to pay off. Do I have to wait a month or so for my addresses with the credit card companies sync up so that when a bank puts my name through Chex the next time, the addresses match, and thus dont get a decline?

 

Anyone else have this problem of being denied by a bank because of Chex, EVEN THOUGH YOU DONT OWE ANY BANKS MONEY, NEVER BOUNCED A CHECK, DONT HAVE A NEGATIVE RECORD W CHEX - ONLY INQUIRIES?

 

 

yup! I keep getting denied by JFCU because of too many chex inquiries. Is there a way to have these inquiries deleted?

 

I was recently denied by JFCU. After more digging I found out that they deny membership to those that have more than 3 inquiries over a 180 day time period. (two of them are from the same credit union-AgFed) I have decent credit; 700 range and no real blemishes on ChexSystems other than these inquiries. I think this is ridiculous but this is their game and now we know the rules so we can adapt to it. Not only did they deny me but they also pulled a hard inquiry from Equifax for applying for their savings account. State Federal does not handle business this way nor do some other credible credit unions. I was mostly interested in a credit union that pulled Experian. Now that they place another inquiry on my ChexSystems I'll be sitting it out; credit union wise.

 

 

 

 

 

 

 

Listening to Crumble by Majai

[Burgerwars]

At least if a bank/credit union tells you a figure (over three inquiries in the last 180 days) then you have something to work with. Wait the needed time and reapply. The person who posted he has over 100 inquiries has been busy. But even then, if it's an automated process that just counts the last 90 or 180 days, it probably won't matter if none or just a couple are recent. If someone at the bank actually looks at the report and counts them all, they may wonder what is going on with this person.

Edited July 13, 2013 by Burgerwars

[Burgerwars]

I had a recent experience with a bank in Moorpark, CA. They wouldn't tell me directly I was being declined for too many ChexSystems systems inquiries, but for too many checking accounts elsewhere. I haven't applied for other accounts in the last three months. The last before this was Discover Bank to get a bonus.

 

I didn't want to go too far and discuss all my assets, but did tell them a little as the conversation lead to that. They basically showed me the door. They want to be your primary bank and looked at me as unprofitable.

 

Anyway, it doesn't bother me. I can't win them all.

Edited January 11, 2015 by Burgerwars

[tmcgill]

Ridiculous. If a credit union (or bank) does not want my money, I will most certainly find a good one that does.

Too many other options available.

[Burgerwars]

Ridiculous. If a credit union (or bank) does not want my money, I will most certainly find a good one that does.

Too many other options available.

Yep. I can't win them all. I am a credit card and bank account whore. I know every additional account I mentioned to the manager would make me look more mentally ill in her view. I still wanted the account but knew I had to give up. I cordially shook her hand and left.

 

While I obviously would initially be a small customer, they burned their bridges with me. Let's say I win the lottery next week. Guess which bank I won't be going for advice.

[pwd847]

How does DCU make money off of me?

 

 

I have $500 in a share savings for the 3.04% interest

 

I receive a free FICO every month.

 

That's all and it's going to stay that way.

 

 

I'm not too sure they want customers like me around.

Edited January 20, 2015 by pwd847

[InsultComicDog]

Just want to comment on the idea of opening so many bank accounts... at some point, as we all do, you're going to die, and whoever has to deal with settling your estate is going to have a nightmare of dealing with all of these accounts (or some lawyer is going to charge a fortune for doing it for him/her). Each bank seems to have a special way of being a pain in the flowers about dealing with the paperwork, and it winds up taking a couple of hours per bank, in person. And even more of an annoyance if there are no branches in the area and it has to be handled by snail mail.

[tmcgill]

On the other side of the coin, I have multiple accounts for different purposes.

You should never keep all of your funds in a single banking source.

 

- Primary Household Account - Chase

- Personal Savings - Merrill Lynch

- Personal Long-Term Money Market Account - Ally

- Business Checking Account - Wells Fargo

- Business Money Market - Discover Bank

 

My final directive and will gives specifics on what to do if my children had to access the accounts.

Not to seque off topic, but everyone should have that directive and a will.