Credit Report - Look Out for Your Debit Report, Too
Most consumers are aware that there are companies that keep track of their personal financial transactions - installment loans, mortgages, credit card accounts, bankruptcies and judgements. These items are assembled by the three main credit bureaus into a credit report, which is available upon request by lenders, employers and anyone else with whom a consumer might do business. The credit report tells these people, in a simple, summarized form, whether or not a consumer is worthy of more credit or another loan. What few people realize is that there is another firm that keeps track of the banking transactions by American consumers, and that information is available only to banks in the form of a debit report. You may not have heard of a debit report, but it can affect you in ways you may not even realize and can prevent you from opening a bank account.
The debit reports are compiled and maintained by a company called ChexSystems. ChexSystems maintains a database of banking transactions by consumers, and creates a "debit score" based on deposits, withdrawals, overdrafts, and whether or not an account has been forcibly closed. Generally speaking, you probably won't have an entry in ChexSystems' database unless you have a history of writing bad checks, overdrawing your account too much, or having your account closed by your bank. On the other hand, people sometimes have entries put in the database by error and don't find out about their entries in the database until their request to open a checking account is denied by their bank. Most banks now use this system, and while some provide a little latitude, most will refuse to do business with anyone who has a negative entry in the database.
The system was originally designed simply to keep track of people who wrote bad checks, but over the last three decades it has evolved into something much more elaborate. Consumers are entitled to receive a copy of their report from ChexSystems, but few people request one, as most people have never heard of the company or their product. The debit score for an individual is only available to banks.
Since few people can make do without a bank account these days, it's worthwhile to at least be aware of this system. We couldn't find a Website for ChexSystems, but they can be reached by phone at 800-428-9623. In addition, there are numerous third party Websites devoted to helping people who have had problems establishing bank accounts due to problems with their debit report. Just type "ChexSystems help" into your favorite search engine.
©Copyright 2005 by Retro Marketing.
Charles Essmeier is the owner of Retro Marketing, a firm devoted to informational Websites, including End-Your-Debt.com, a site devoted to personal bankruptcy, debt consolidation and credit counseling, and HomeEquityHelp.com, a site devoted to information regarding mortgages and home equity loans.
MORE RESOURCES:
 China Daily | US August consumer credit falls by $7.88 billion, first decline in ... Forbes, NY - WASHINGTON (Thomson Financial) - Americans unexpectedly decreased their credit borrowing for the first time in more than ten years, mostly cutting back on ... Video: Dow Dips More Than 500 on Worries About Financia Stocks down despite government moves to free up credit Consumers Trim Their Borrowing |
 China Daily | Credit cards next in line for tightening Atlanta Journal Constitution, USA - By MARK GONGLOFF As consumers watch their wealth disappear in the markets, some are also at risk of losing one of their last spending lifelines: credit ... Fear gripping Wall Street Bailout should not include price controls on low-limit credit cards Fed's new arsenal firing blanks |
US consumer credit posts worst drop ever National Post, Canada - US consumer credit plummeted by US$7.9-billion dollars in August - its sharpest drop on record, US Federal Reserve figures showed Tuesday. ... US consumer credit declines for first time in over decade Consumer Credit Drops for First Time in 10 Years US Consumer Credit Dropped by the Most on Record (Update1) |
 Reuters | With Credit Drying Up, Car Buyers Bring Cash New York Times, United States - Tighter credit was a crucial factor in the stunning 26.6-percent drop in September vehicle sales in the United States. In September, sales fell below 1 ... Credit crunch hits auto market's weak link 700 US dealerships could close this year, says head of dealer group Auto dealers looking for the end of the credit crisis tunnel |
 Reuters | Former AIG CEOs back credit default swap regulation Reuters - N: Quote, Profile, Research, Stock Buzz) said they would back regulation of the credit default swaps market in testimony at the US House Oversight and ... Unregulated swaps hastened Wall Street collapse New York insurance regulator calls for regulation of credit ... Greenberg Says Federal Loan to AIG Is Bad Deal |
 Thanh Nien Daily | Libor for Overnight Dollar Loans Jumps as Credit Freeze Deepens Bloomberg - The seizure in global credit markets is deepening on speculation central bank attempts to revive lending between financial institutions won't work, ... Credit gears of commerce are still jammed Credit markets still tight as stocks plunge Credit fears threaten to clobber world economy |
 Boston Globe | Crude Oil Falls as Demand Slumps, Credit Market Turmoil Worsens Bloomberg - Global stock markets have plunged as banks freeze credit lines to investors and companies. ``Demand destruction is prevalent in developed countries with ... Canada energy stocks slump on credit woes, outlook Crude Oil Falls as Worsening Credit Crisis May Curb Fuel Demand |
Corporate America Credit Union and FIMAC Reach Agreement to Offer ... MarketWatch - Based in Birmingham, Alabama, CACU has over $1.4 billion in assets, and serves the financial needs of 174 member credit unions. ... |
 Voice of America | Small US Businesses Feel Pinch of Tightened Credit Voice of America - By Mike O'Sullivan As the US Federal Reserve System announced measures to ease the credit crisis Tuesday, small business owners around the United States say ... |
 New York Times | Federal solar tax credit extended San Antonio Business Journal, TX - The Solar Electric Power Association expects solar generation to expand significantly thanks to the extension of federal solar tax credits to utilities. ... Solar energy gets huge earmark in bailout bill Will Coal Be Cashing In On the New Tax Credit?  Comment by Gregory Wetstone AWEA Sr. Director of Governmental & Public Affairs |
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