ChexSystems: The banks’ secret watchdog is watching you

re: ChexSystems: The banks’ secret watchdog is watching you

Mike — Thu, 13 Aug 2009 23:32:56 GMT

Essentially ChexSystem is a brotherhood of banks just sharing information about deadbeats so the next one down the line doesnt get stuck for some idiots inability to properly track and account for their spending.

Once a deadbeat, likely to always be a deadbeat.

Pay your bills people and you will stay out of trouble

re: ChexSystems: The banks’ secret watchdog is watching you

GK — Wed, 01 Jul 2009 18:04:14 GMT

mpatton - if you used telephone or Internet banking, you would have caught this immediately. Snail mail is for technologically illiterate people.

re: ChexSystems: The banks’ secret watchdog is watching you

Stop complaining! — Mon, 29 Jun 2009 16:02:21 GMT

It makes me laugh that someone is alarting us that banks are not our friends? Of course they are not. They are in business. I have never worked for any banks, but I appreciate their service. Most likely, these people who are complaining about banks are the people banks don't want anyways. Just use your cash. Don't rely on them. So banks can only provice their service to the people who are worth to them.

re: ChexSystems: The banks’ secret watchdog is watching you

Frank — Sat, 27 Jun 2009 05:38:34 GMT

"So you could shine a light on their shady practices?" It's nothing new and everyone knows the practices, picking a bank and thus it's fees and underhanded B.S. is like choosing to get mauled by a Mountain Lion or to get mauled by a Cougar. Either way you're dealing with bite marks.

It helps to not live paycheck-to-paycheck though. If you have to check your checking book to make sure you have enough to write a small check you're not keeping enough in your account.

re: ChexSystems: The banks’ secret watchdog is watching you

mpatton — Fri, 26 Jun 2009 23:01:03 GMT

I once had a 12 cent overdraft turn into a $600 negative balance.

I bounced a debit card transaction by 12 cents. My Chicago based major bank with branches only in Illinois sent me a notice from Florida. It took 5 days plus a weekend to make the trip. So, I was behind by $100 or so from the start. I called the bank and complained that they were just generating fees by sending notices from Florida, and I would only pay for 1 day. They wouldn't budge so I told them to close the account. They said they couldn't do it over the phone, I said I was too sick to go to the bank, and a stalemate ensued. They let it go for a month or two, until it got to $600. I'm sure that was reported. I kinda wish they had sued me so I could shine a light on they're shady practices.

re: ChexSystems: The banks’ secret watchdog is watching you

MH — Fri, 26 Jun 2009 22:34:24 GMT

The main problem is this. They claim this system is needed due to fraud? Well seeing how the banking industry obviously does nothing to stem bank/check/credit/ fraud then why not just use a stupid simple system to keep track.

I will give you one example of the lack of effort banks have for fraud.

If I have a checking account with $500.00 in it and someone obtains my debit card and pin and starts charging before i notice it: What happens? the bank will allow how much over my 500 to be deducted? 100, 3000, 5000? If they would stop accepting the damn cards at the zero balance then that would stem a lot of fraud ( but its more convenient for me that i'm not embarrassed but then again i guess the bank doesn't mind paying all the NSF/Overdraft associated with a lost/stolen card versus just denying the card!!!!).

Also, with checks yes it's easier to abuse due to float time but thats what i thought checksys did. When i worked at a store in my youth, I thought it made sure the funds were in the account.

BIOMETRICS IS WHAT WE NEED TO STEM ALL FRAUD AND ID THEFT IN THIS COUNTRY. I WOULD RATHER BE IN A DATABASE WITH IDENTIFIERS ENCRYPTED SO THAT MY THUMB PRINT WOULD TELL AN ATM OR BANK OR ANYONE ELSE (LIKE WHEN USING A CREDIT CARD OR APPLYING FOR ANYTHING) THAT I AM WHO I SAY I AM, THEN TO HAVE SOMEONE EASILY STEAL MY INFORMATION WHICH IS OUT THERE ALL OVER THE PLACE FOR ANYONE TO STEAL. THAT TO ME IS NOT AN INVASION OF PRIVACY.

I do think that a national DNA database of everyone is excessive seeing how DNA can easily be planted and you always leave trace DNA wherever you go (think about it, if you have sex in a hotel or masturbate in a place and then a crime is committed there then your DNA will be there innocently), it can be planted despite what people see on tv and think.

Sorry, went off on a tangent there.

re: ChexSystems: The banks’ secret watchdog is watching you

GK — Fri, 26 Jun 2009 22:12:07 GMT

Thanks for your post, A banker. Well-expressed.

Buyer beware applies to all financial institutions, bank or CU. They're not that different. How they're taxed differs - banks pay federal taxes; CU are exempt from federal taxes because they're nonprofits.

No one should fear any type of reporting process IF YOU LIVE YOUR LIFE PRUDENTLY - if anything, reporting HELPS YOU.

If you limit your use of credit and make your loan payments on time, you will get a much lower rate when you borrow.

If you handle your checking account properly, you won't have any problems with places you shop at, you'll be able to get cash at ATMs w/o problems and will be welcome to do business at any financial institution.

If your driving record is clean, your premiums will be lower than someone who is always causing accidents.

If your criminal record is a blank piece of paper, you'll get better jobs than someone who has a record.

Data in reporting systems helps business make OBJECTIVE decisions. An 800 credit score is an 800 credit score, whether you're male or female. Zero points on your license is zero points on your license, whether you're black or white.

Like it or not, when business doesn't discriminate between good and bad, the good end up paying more and the bad paying less. If the answer to the question is "What's in it for me" - is "Nothing" - why bother being good? Why bother cleaning up your act? The result is the same. And that's socialism.

re: ChexSystems: The banks’ secret watchdog is watching you

Lizzette — Fri, 26 Jun 2009 21:37:50 GMT

I have to disagree with your post, Em. I worked in retail banking for a couple years, and was awed by the disrespect and blatant dishonesty of many of my co-workers. My company had daily sales meetings, and the pressure to acquire new accounts lead to what I consider unethical practices. For example, there was a process our customers could go through over the phone to have an overdraft fee reviewed and removed if such charges were infrequent. We were instructed to refer them to this service only if they were angry enough that we were at risk of losing the account. There were a couple instances when employees took advantage of mentally impaired or elderly customers to meet their quota, inadequately explaining the fees or terms; on one occasion causing a mentally disabled man to be unable to pay his rent because his funds were locked up, on another charging an elderly woman with hundreds of dollars of fees in a few months. Whenever someone felt a customer had been to confrontational about our practices they could close the account without their consent and notify them by mail.

I'm sure not every bank runs this way, but I was absolutely disgusted by the practices I was exposed to. I now bank at a credit union as well.

re: ChexSystems: The banks’ secret watchdog is watching you

GK — Fri, 26 Jun 2009 21:33:32 GMT

Bing...if your wish comes true and the system fails, whatever cash assets you have will be worth $0. You'll have nothing. You'll be no better shape than someone with loans. Please please please gain some basic financial literacy.

re: ChexSystems: The banks’ secret watchdog is watching you

Glenn — Fri, 26 Jun 2009 21:15:27 GMT

Bing, I was being a wise acre; I understand what you're saying about gold-backed currency. I'm not necessarily opposed to higher taxes if the funds were better managed/allocated - don't see that happening any time soon, though.

And I'm now clearly off-topic...

Back to this thread - I guess ChexSystems can be a valuable tool to protect against habitual offenders, but I've also heard stories (before the ones here) about the difficulties in fixing an actual error where the customer had no wrongdoing. Nothing is all-reliable (said Mr. Obvious).