3 On Your Side: Secret Reports Tracking Your Financial Life
By Jim Donovan
PHILADELPHIA (CBS) -- We've all pretty much heard of credit reports, but did you know that there are dozens of other secret reports tracking your every move? With lenders, utilities, and other businesses monitoring your financial life. 3 On Your Side Consumer Reporter Jim Donovan has a glimpse into who's watching you and why you need to be concerned.
He's got thousands of dollars in his credit union account but when Johnny Smith tried to get $20 bucks out of an ATM, he was rejected. He says, "it's very, very frustrating." The ATM screen said his card wasn't valid. His wife Stephanie was also rejected when she tried to use her card at a store. She says, "you are totally embarrassed, you start looking at all these people around you and you think oh my God."
The Smiths' say their credit union de-activated their cards over what popped up on their ChexSystems report. ChexSystems tracks checking and banking account histories. 80 percent of banks and credit unions use it, sharing information including if you've over-drafted, bounced a check, have unpaid debts, or suspected fraud with your account.
Johnny Smith says, "It's certainly pretty scary. It makes me feel like big brother has arrived." He was reported after he forgot about an account he shared with his elderly mom at a different credit union. Monthly fees had drained the account, putting it $52 in the red.
ChexSystems is just one of dozens of companies that may have reports on you. The various companies are tracking your habits: including your banking history, how many insurance claims you've filed, your rental record, even how often you return things to stores.
Stephanie Smith says, "I want to know what these people are saying about us," and Consumer Action's Joe Ridout says, all of us should too. According to Ridout, "You absolutely have a right to request the information they have on the report."
That's because these reports could be riddled with errors: which may cause a rental application to be denied, keep you from opening a bank account, it could even drive up your insurance rates costing you thousands of dollars.
Johnny Smith cleared up that $52 debt tied to the account he shares with his mom. Eventually the information reported to ChexSystems was pulled and his and wife's debit cards are working again. Stephanie Smith says, "I think we should've been able to resolve this without having to go through all the rigmarole."
These reports are often referred to as specialty reports. To see how you can obtain your reports, and to check out what information that has been collected, who can see it, and to correct any mistakes, visit this link:
http://www.consumer-action.org/downloads/english/specialty_report_guide.pdf