Why are employers checking applicant credit files as contingent upon?

Opening A New Checking Account -- Bank s' Credit Checking Companies?

• This is a rush question... I have a client who currently has a checking account, however, she is moving to the New England area and needs to open a new checking account there. We have found that, due to a past relationship, two "credit history" reporting agencies that do background checks for banks have provided information which make it impossible for her to open a new checking account with the banks that use them. However, there are other agencies employed by banks in New England that do not report the same information. I would like to find out which banks in MA or NH do not use "ChexSystems" or "NCPS" for new account verification purposes. Some banks use "Telecheck" and some banks, especially smaller ones, may not use such a service at all. I would like to obtain a list of 20 banks that do not use these two previously mentioned services, along with their locations and phone numbers. If MA and NH seem to be difficult, other New England states can be researched (RI, CT, VT, ME, in descending order of interest). I routinely obtain this information when conducting background checks on new/potential employees for businesses. You can call these banks (costs for long distance calls will be reimbursed within tip) and directly ask the customer service department what company(ies) they use to determine whether or not to open a new checking account for an individual. (Banks for each state are listed in yellow pages on internet--for listing purposes, "MapQuest" distance from Boston could be used to rank them; the closer to Boston, the better.) This is public information and if you tell them you are conducting a background check for employment purposes, and that knowledge of what company they use for this will indicate how creditworthy/bondable a person might be, they should not have any problem with telling you (they do not need or request a name). They probably won't even require any reason for the question. Secondly, please find out how many business days it will take to clear an initial deposit made by check from Citizens Bank in MA for the purpose of opening a new checking account, if possible. Email can be used to obtain all of this information as well. Please provide a list of 20 banks. You do not need to contact Fleet Bank, Citizens Bank, Granite Bank, Wainwright Bank, or Peoples Federal Savings Bank as they have already been contacted. A tip, commensurate with effort, will be provided (in addition to covering phone call costs, if any since some banks do not have toll free numbers). If you begin this research and feel that it will involve more time than expected, please inform me and I will increase the price or promise to pay a certain additional amount in the tip. Thank you!

• Answer:

  Hello again, Henry! I was wondering if maybe you might be a lawyer! (The other guesses were P.I. or writer.) You seem to be an awfully busy one! Why don't I leave a few tips for whatever Researcher picks up the new question? --"Rural" banks often aren't listed in online yellow page directories. The main branch of your public library should have paper telephone directories for most major metropolitan areas. Even so, be careful - it's hard to decipher what constitutes "rural". Keep MapQuest or MapsOnUs handy. --Not every listing under "Banks" is a bank. Some are brokerages or consulting firms. Check for a web page first - if you call to ask about a checking account, and it turns out to be a brokerage, you're going to feel silly and the person you talk to might be annoyed. --As noted previously, 80% of banks nationwide use ChexSystems to verify new account holders. Most of the rest use some other system. Be certain to ask "What do you use to verify new account holders?", not "Do you use ChexSystems?" --Be prepared to use the telephone to investigate this query. I sent e-mail to a total of 27 banks over the weekend, and *not one* has responded to e-mail. --Be honest when you call. Tell the representative that you're researching the methods banks use to verify new customers. You're more likely to get accurate information if you don't fib. --Be prepared to be told "You can't have that information". Often. Banks do not have to reveal the methods by which they verify new customers, and some simply won't. They will cite security concerns and close the subject. Ask to be referred to someone who can help you get the information you require. --You may want to ask branch managers what their policy is, regarding people who have ChexSystems entries. Some banks are allowing customers with CS entries that are a year or more old to open new checking accounts. I didn't encounter any in the calls I made, but my own banker said that this is being put into practice by some banks. It never hurts to ask. --Chat up your local banker or credit union manager. S/he can be a wealth of knowledge and insight, and s/he will know other bankers with even more information. Thank you for your questions, Henry. I do hope that the next time we connect, I'll be able to locate exactly what you require. --Missy