topic Early Warning System and Chexsystems in Personal Finance

Early Warning System and Chexsystems

ThriftySaver — Mon, 15 Jun 2020 23:37:19 GMT

These reports are used by banks and credit unions when opening accounts. But once the account has aged do the banks still pull these reports from time to time? Or only when new accounts are opened? Also, do banks have hard pull and soft pull on these reports or is it everytime a bank views your report it shows up on these systems?

Re: Early Warning System and Chexsystems

simplynoir — Mon, 15 Jun 2020 23:50:40 GMT

I'm subscribing to this thread because your questions have piqued my interest

Re: Early Warning System and Chexsystems

Brian_Earl_Spilner — Tue, 16 Jun 2020 00:12:31 GMT

According to my latest chexsystems report, they only pulled once for opening.

Re: Early Warning System and Chexsystems

Anonymous — Tue, 16 Jun 2020 00:49:05 GMT

Early Warning Services isn't a traditional CRA with HPs and crap. They receive and report information in real time under the guise of fraud prevention. Participating banks and CUs can and often do report every electronic transaction in and out of your accounts to Early Warning Services, including daily account balances. When I was going over my report, I even noticed that Capital One decided to report some payments I made from my NFCU account. Since NFCU is a member of the EWS network, those payments showed up under the NFCU account as reported by Capital One.

It's actually a terrifying amount of information and it makes me happy that DCU and 1stBank don't use it.

Re: Early Warning System and Chexsystems

M_Smart007 — Tue, 16 Jun 2020 02:48:13 GMT

@Anonymous wrote:
Early Warning Services isn't a traditional CRA with HPs and crap. They receive and report information in real time under the guise of fraud prevention. Participating banks and CUs can and often do report every electronic transaction in and out of your accounts to Early Warning Services, including daily account balances. When I was going over my report, I even noticed that Capital One decided to report some payments I made from my NFCU account. Since NFCU is a member of the EWS network, those payments showed up under the NFCU account as reported by Capital One.

It's actually a terrifying amount of information and it makes me happy that DCU and 1stBank don't use it.

Re: Early Warning System and Chexsystems

DaveInAZ — Tue, 16 Jun 2020 19:10:27 GMT

@ThriftySaver wrote:
These reports are used by banks and credit unions when opening accounts. But once the account has aged do the banks still pull these reports from time to time? Or only when new accounts are opened? Also, do banks have hard pull and soft pull on these reports or is it everytime a bank views your report it shows up on these systems?

Banks/credit unions might "soft pull" Chex from time to time to review, but it won't show up on your Chex report that can be seen by anyone other than you. I pulled my Chex report last January and at the end it lists "Inquiries viewed only by you", it listed 3 "reviews" by a CU I had accounts with.

But many do pull Chex again if you open a new account even if you already have an an account with them, especially credit unions. I had a savings account with OneAZ CU, which allows up to $500 in CC funding for new accounts that codes as a purchase. They have accounts they call "Club Savings Accounts" and you can have up to 10. So I opened 1 per month for 3 months for the rewards on my PayPal MC. When I pulled my Chex I saw I had 4 inquires from them, so I shut everything down. I do bank account bonuses regularly so $10 in CC rewards isn't worth a Chex HP. I also had a checking account with BMO Harris Bank a couple years ago, I opened a savings account a month or so after the checking an saw they pulled Chex again. And as indicated in other posts, EWS reports everything.

Re: Early Warning System and Chexsystems

core — Tue, 30 Jun 2020 23:24:42 GMT

On more than one occasion I have seen banks do a soft pull on Chex just days after the account is opened. Especially if I was on a mini-spree opening bank accounts. I think they wanted to see how many I applied for after the approval, since it looked borderline to begin with. One time I was approved for an account in person and then had my account closed a couple days later because I visited a few other banks in the area that day. Even though I was careful to order my apps by their level of paranoia, there's nothing you can do if they come back and SP you later after the dust settles.

I also heard somewhere that ChexSystems has a service banks can subscribe to which automatically rats on you when you apply for another account. This of course won't even show up as a SP.

Re: Early Warning System and Chexsystems

Anonymous — Wed, 01 Jul 2020 01:11:14 GMT

I don’t doubt ChexSystems snitches on you. So do CRAs with the bustout warnings, although that might be a little bit more sensible.

As for EWS, it’s very scary. Not only does it fall under an exception that prevents you from opting out or freezing your file, but since it’s owned by 5 or 6 banks, they can share information without violating certain privacy laws because they’re sharing it with themselves, all being owners of EWS.

So it’s a type of bureau created by banks for banks and guess who it’s not for and not going to help?

Re: Early Warning System and Chexsystems

Anonymous — Thu, 02 Jul 2020 01:12:24 GMT

@Anonymous wrote:
Early Warning Services isn't a traditional CRA with HPs and crap. They receive and report information in real time under the guise of fraud prevention. Participating banks and CUs can and often do report every electronic transaction in and out of your accounts to Early Warning Services, including daily account balances. When I was going over my report, I even noticed that Capital One decided to report some payments I made from my NFCU account. Since NFCU is a member of the EWS network, those payments showed up under the NFCU account as reported by Capital One.

It's actually a terrifying amount of information and it makes me happy that DCU and 1stBank don't use it.

^^^^^^^^^^^^^^^

This.

EWS has daily balances for several one of my EWS-using banks, a list of every inbound and outbound ACH transfer, ALL of my Chase business accounts (and all the details i just mentioned FOR those accounts) even though they're listed under the business name and tax IDs, every inbound ACH from PAYROLL for my personal accounts, all our transfers between BUSINESS accounts at different banks, etc. Truly - terrifying amount of data. If they ever got compromised, DOOM...... I means seriously... DOOM.

To answer OP's question - Chex only gets queried when you open a new account, occasionally to cash a check, and occasionally when you do some other high-risk check acceptance/deposit/cashing activity. Generally, no - no other queries.

EWS can, and often DOES, get queried every time you transfer money to/from an EWS-enabled account/institution. They use it to determine how fast to post your personal inbound ACH transactions (like when you PULL money from one of your accounts to another at an institution), how risky those transactions are, etc. They have the ability to query it upon check acceptance as well - ie every time you electronically deposit a check - to gauge the RISK of giving you credit for those funds before they have fully collected. They also use it to determine the risk for Zelle payments. Zelle is run by EWS, fyi. methinks it was a good way the EWS folks could entice more banks to join EWS.

Thankfully, those sorts of inquiries are similar to "soft" inquiries on your credit report - ie there is no "official record" of them. The only "hard" record is when you open an account.

Ugh. EWS... <shudder>... DOOM!... <shudder>....

Re: Early Warning System and Chexsystems

core — Fri, 03 Jul 2020 08:59:22 GMT

Yes, EWS has your exact bank account balances for all to see! Going back years. It's truly ridiculous. Fortunately though it is mainly just the megabanks that use EWS, and why would you have an account there when you can get 3.00%+ APR on checking from any number of other places? Needing to receive international wires and the ability to use Zelle would be the only reasons I can think of.

Re: Early Warning System and Chexsystems

kremonis — Tue, 05 Jan 2021 16:31:01 GMT

@DaveInAZ wrote:
@ThriftySaver wrote:
These reports are used by banks and credit unions when opening accounts. But once the account has aged do the banks still pull these reports from time to time? Or only when new accounts are opened? Also, do banks have hard pull and soft pull on these reports or is it everytime a bank views your report it shows up on these systems?
Banks/credit unions might "soft pull" Chex from time to time to review, but it won't show up on your Chex report that can be seen by anyone other than you. I pulled my Chex report last January and at the end it lists "Inquiries viewed only by you", it listed 3 "reviews" by a CU I had accounts with.

But many do pull Chex again if you open a new account even if you already have an an account with them, especially credit unions. I had a savings account with OneAZ CU, which allows up to $500 in CC funding for new accounts that codes as a purchase. They have accounts they call "Club Savings Accounts" and you can have up to 10. So I opened 1 per month for 3 months for the rewards on my PayPal MC. When I pulled my Chex I saw I had 4 inquires from them, so I shut everything down. I do bank account bonuses regularly so $10 in CC rewards isn't worth a Chex HP. I also had a checking account with BMO Harris Bank a couple years ago, I opened a savings account a month or so after the checking an saw they pulled Chex again. And as indicated in other posts, EWS reports everything.

@DaveInAZ

You just did me a solid. I was going to troll for someone here to refer me for memebership in this CU. But like you concluded, it is not worth it if messes up you Chex reports.

I wonder what would happpend if people froze the Chex and EWS reports?

Re: Early Warning System and Chexsystems

Remedios — Tue, 05 Jan 2021 21:42:18 GMT

Thinly vailed discussion of unethical practices is not allowed.

If your post is missing, that's why.

Should anyone require additional clarification, it can be found here

Re: Early Warning System and Chexsystems

Anonymous — Wed, 06 Jan 2021 05:05:27 GMT

@kremonis wrote:
@DaveInAZ wrote:
@ThriftySaver wrote:
These reports are used by banks and credit unions when opening accounts. But once the account has aged do the banks still pull these reports from time to time? Or only when new accounts are opened? Also, do banks have hard pull and soft pull on these reports or is it everytime a bank views your report it shows up on these systems?
Banks/credit unions might "soft pull" Chex from time to time to review, but it won't show up on your Chex report that can be seen by anyone other than you. I pulled my Chex report last January and at the end it lists "Inquiries viewed only by you", it listed 3 "reviews" by a CU I had accounts with.

But many do pull Chex again if you open a new account even if you already have an an account with them, especially credit unions. I had a savings account with OneAZ CU, which allows up to $500 in CC funding for new accounts that codes as a purchase. They have accounts they call "Club Savings Accounts" and you can have up to 10. So I opened 1 per month for 3 months for the rewards on my PayPal MC. When I pulled my Chex I saw I had 4 inquires from them, so I shut everything down. I do bank account bonuses regularly so $10 in CC rewards isn't worth a Chex HP. I also had a checking account with BMO Harris Bank a couple years ago, I opened a savings account a month or so after the checking an saw they pulled Chex again. And as indicated in other posts, EWS reports everything.
@DaveInAZ
You just did me a solid. I was going to troll for someone here to refer me for memebership in this CU. But like you concluded, it is not worth it if messes up you Chex reports.

I wonder what would happpend if people froze the Chex and EWS reports?

Cannot "Freeze" an Early Warning Systems Report. They are not considered in the credit reporting business.

Re: Early Warning System and Chexsystems

Anonymous — Wed, 06 Jan 2021 07:18:58 GMT

If it’s frozen they won’t open the account. And as stated you can’t freeze EWS, it falls under an exclusion.