Telecheck may stop you from opening a new account in the bank despite the fact that you have maintained a very good banking record in the past. This refusal may come as a surprise but it happens due to a system called Telechecking. This system is mainly used in the banks, in departmental stores as well as in grocery outlets.
Telecheck is a company that tracks fraudulent transactions related to checks. An overview of the company and its working is given below:
Telecheck - At a glance Telecheck is a company that maintains information about checks that have returned or defaulted. Any incident of check related fraud is also traced by Telechek. This has especially helped the merchants to a great extent as they come to know when a check is of "no good" and when it cannot be used. A person whose check has been refused is not allowed to write another check till the time the situation is not sorted out.
How Telecheck works Telecheck is well known for dealing in electronic as well as paper checking services. Whenever a transaction processing request is received by the Telechek company, the driving license of the customer is fed into a telephone line. From the Telechecking system, if it is found that the customer has a defaulted check against his account; his transaction request is simply turned down. Since the customer may change his bank accounts frequently, the Telecheck company makes use of a customer’s driving license.
Difference between Teletrack and Telecheck Often people get confused between Telecheck and Teletrack. The main difference between the two is given below.
While Telechek mainly deals with check guarantee, verification of checks, collection services, electronic check conversions etc, Teletrack, an NSF reporting agency, mainly caters to a subprime client base. Some of the services of this company include - skip tracing, risk assessment, identity verification, fraud alert as well as taking care of credit scores etc.
There is another company, Chexsystem Inc, which operates in the same manner as Telecheck. The role of Chexsystem in brief is given below.
Chexsystem may be referred to as an association of several financial institutions, which works in conjunction to draw up a database of records of those customers who have had a bad credit record earlier. These customers are often considered as "mutually unwanted" by Chexsystem. Such customers having their financial mismanagement activities reported to Chexsystem often find it difficult to open new accounts.
Can you find out if you are already in Telechek - ...
By signing up a debt counseling session, your provided details (Name, Email ID and Phone No.) will be forwarded to the company advertising on the DebtCC. However, you have no obligation to use their services.
Some creditors and collection agencies refuse to lower the payoff amount, interest rate, and fees owed by the consumer.
Creditors/collection agencies can make collection calls and file lawsuits against the consumers represented by the debt relief companies.
Debt relief services may have a negative impact on the consumer's creditworthiness and his overall debt amount may increase due to the accumulation of extra fees.
The amount which the consumer saves with the use of debt relief services can be regarded as taxable income.