Banks and Their New "Fees" on the Poorest Americans

[Nina~ 431]

Your credit was checked when you opened your bank account and you just didn't know it.

There's a 4th and 5th credit bureau that people don't generally know about that deal directly with banks in regards to checking accounts. One is called "ChexSystems" and the other is "Telecheck."

If you've ever worked in any type of retail store you might have seen their cards years ago that are given out to people if a store denies their check, etc. for some reason.

Where a regular creditor reports to Experian, Transunion, and Equifax, banks report to these two. It's the one outlet that many people don't know to check if they've ever been victims of identity theft and getting items removed from ChexSystems is a real pain in the #######. Even having something as small as a $100 mark against on you ChexSystems can get you denied at almost any bank and many credit unions as well.

Since they are technicaly credit bureaus though, you can request a FREE credit report from them just like any of the major 3.

Is this a new thing? Because I opened a bank a/c when I first came to the US (10 years ago) with no SSN or credit history. A couple of year later I opened another a/c with still no credit history.

[skiptex 225]

well.. i guess if you use cash.. it would not be a problem

[Nina~ 431]

well.. i guess if you use cash.. it would not be a problem

I prefer to use my credit card with 5% cash back to pay for things and pay it off at the end of each month. This way I get free $ (upto $300 per year per card) plus I can also dispute charges if a vendor tries to rip me off. You don't get that kind of protection with debit cards or cash.

[Obama 2012 1,714]

Is this a new thing? Because I opened a bank a/c when I first came to the US (10 years ago) with no SSN or credit history. A couple of year later I opened another a/c with still no credit history.

not new at all. They've been around for at least 20-30 years.

The difference with Telecheck/Chexsystems is that they are just for "negative" reports only. Where the major 3 give you positives on your credit report, these two do not.

The difference with Telecheck/Chexsystems as well if they don't necessarily use your SS# either. You might not have a ding on your SS#, but you might on your DL#.

Up until about 10 years ago you could get bank accounts without SS#s and DLs... Now, thanks to the Patriot Act every bank is required to get indentifying information from you. If they don't they are in direct violation of Federal law.... Thanks to this though a lot more people have had to deal with telecheck/Chexsystems.

There are a few banks out there that don't use Chexsystems at all as they feel it's an unfair practice in many cases, but all of your 'major' banks use them: Wells Fargo, Chase, Bank of America, etc..

[DaveE 178]

I only use the credit union. Here, my checking is free, and my personalized checks are free. Cashiers checks are free (one per day), and notary is free. My credit union ID card is a debit card, (no fee). The only fee I ever pay is if I use an ATM outside of their system.

[mawilson 2,133]

well.. i guess if you use cash.. it would not be a problem

Cash has problems too - muggers, inflation, etc.

[skiptex 225]

Cash has problems too - muggers, inflation, etc.

well then $5 a month seems like a good investment for PROTECTION

[sly_wolf 199]

Banks in Canada have been doing this for quite a while. Its called nickel and diming and customers hate it. The bank profits are huge and customers have no choice since all banks eventually jump on the band wagon.

Business know it pisses off customers but they dont care since they also know their customers eventually wont have any choice. No different from airline baggage fees.

Customer service is no longer important for businesses. Its quite evident in many places.

[Captain Oates 911]

I closed my wells fargo account the same day as they introduced fees. Kept one of my credit cards with them. Never paid overdraft interest - never paid credit card interest.

No fees on Chase yet - but if they do I will go to a local bank or credit union

If we think the banks are profiteering, we could buy their stocks and be the owners and share the profits

We don't though do we ?

My English dosh is earning 0.15 % so I moved it to the Bank Of England at 1.75%

You can open an account there too - national savings - direct saver - non residents - ace !

queen money very cheap just now - I am hoping to make 10% exchange rate plus 4% interest in the next 2 years

Edited October 4, 2011 by Austin Devon