Check Verification
& Banking History Reports
Under the Fair Credit Reporting Act (FCRA), check verification reports fall into the category of “specialty consumer reports.”
Banking history reports are databases used by banks, retailers, and other businesses to assess whether your checks are likely to clear or whether you have a history of bounced checks, fraud, or account closures. Examples of companies in this space include ChexSystems, TeleCheck, and Certegy. Users don’t look at your credit score, as is the case with Experian or TransUnion for instance; instead, they track your check-writing and banking history.
FCRA Coverage
Banking history reports contain information used to evaluate consumers for eligibility in banking, retail transactions, or financial services. As such, these reports are covered by the FCRA and entitle you to the same rights as with traditional credit reports, including:
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one free report every 12 months (and additional free reports in some circumstances, like if you’ve been denied an account or transaction due to the report).
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right to dispute inaccuracies. The agency must investigate and correct errors within 30 days.
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right to notice if information in a check verification report was used to deny you banking services or decline a transaction (called an adverse action notice).
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Right to damages in court if the reporting company or a furnisher willfully or negligently violates the FCRA.​​
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The Importance of the Banking History Report
If you’ve had overdrafts, unpaid fees, or suspected fraud alerts, that information may appear on these reports and affect your ability to:
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Open a new checking account
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Write checks at a store
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Cash checks through certain verification systems
Even a single negative entry can sometimes prevent you from opening an account until resolved.
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If you have adverse information on banking history report that is inaccurate or outdated, connect with Wells Law - Chicago today.​
​​​Be Informed. Be Empowered. Be Protected. Contact us today for a Free Case Review.