Buzz
While financial trends evolve, the necessity of a bank account remains constant. Life becomes significantly smoother with one. Although paper checks may be a rarity nowadays, a bank account is still a cornerstone of contemporary living. Just 6% of Americans are classified as “unbanked,” indicating they lack any bank account. While a cash-only lifestyle is feasible, the benefits of having a bank account—such as FDIC-insured deposits, interest earnings, and establishing a relationship with a financial institution—are too substantial to overlook, especially when securing a mortgage or depositing paychecks.
This is why it’s alarming when a bank abruptly shuts down your accounts or denies your application to open one. The uncertainty is frustrating—but there’s a way to uncover the reasons behind such decisions. Banks rely on reports akin to credit reports to assess the risk of allowing you to open or maintain an account. Just as you review your credit report annually, these reports should also be checked regularly.
Your bank maintains confidential reports about your financial behavior
Surprised? You shouldn’t be: Banks have every right to refuse you an account or shut down an existing one, and they’ll act swiftly if your risk profile raises red flags. The worst time to discover you’re deemed a risk is after your account has been closed or your application denied. Your best strategy is to review your banking reports annually, just as you do with your credit reports (you do check your credit reports every year, right?).
The good news is that these confidential bank account reports fall under the Fair Credit Reporting Act, just like credit reports, allowing you to request a free copy annually to verify accuracy and dispute errors. The downside? There are six—yes, six—reports you need to scrutinize.
The reports you need to review
Here are the six companies you should contact immediately to request your banking report. The process mirrors requesting a credit report: Provide basic information to verify your identity, download the report, review it, and address any discrepancies as specified by the company.
Early Warning Services. The name might sound like it’s straight out of a Terminator movie, and for good reason—it could signal your financial downfall. You might recognize Early Warning Services as the owner of the banking app Zelle. EWS is co-owned by major banks like Bank of America, PNC Bank, and Wells Fargo, making it a key player in your banking reports. Request your Early Warning report here.
Certegy Payment Solutions. Certegy tracks consumer check-writing histories and offers verification services to merchants, gambling platforms, and banks. Request your Certegy report here.
Chex Systems. Chex Systems alerts banks about unpaid fees, delinquencies, or other issues with past accounts. They provide a risk score ranging from 100 to 899, similar to a credit score. Request your Chex report here.
CrossCheck. CrossCheck specializes in check verification for industries like automotive, construction, retail, and healthcare. If you’ve written checks to a dentist or contractor, review this report annually. Request your CrossCheck report here.
Global Payments Check Services. Global Payments offers verification services to banks and businesses, including debt collection, meaning discharged debts might still appear on their reports. Request your Global Payments report here.
TeleCheck Services. TeleCheck focuses on reducing fraud related to bank accounts. Request your TeleCheck report here.
Although it requires some effort, reviewing each of these reports annually—a right granted to you by law—is the most effective way to safeguard yourself against fraud or errors that could hinder your ability to open or keep a bank account.
