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Telechek is same as Telecheck tracks fraudulent check transactions

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 - ...
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Can you find out if you are already in Telechek - (the database banks use to keep you from being allowed to get another checking account)before you apply for new checking account?




Yea, you can go online and search for telechek or telecheck report and you can get a free one. It will take a while you to get it, so if you need to know faster, I would just go and try for an account...

Sub: #1 posted on Wed, 12/20/2006 - 15:52

natdust20 natdust20

(Posts: 1350 | Credits: 164.28)

Telechek works this way: When an application is received by the company, the customer's driver's license number is punched into a secure telephone line processor. If the license has bad unpaid check connected to it, the terminal will read CODE 4 which means that the customer has given a bad check to a Telechek merchant (most grocery stores, department stores, etc) and it has not been paid. This is good information to have because it probably affects the bank account you're ACHing money into. But the most powerful feature of Telechek and SCAN is the bad check (draft, ACH, etc.) negative date feature. If you have a returned ACH or bad check, you can report the NSF to Telechek . When the customer tries to present a check to the grocery store or department store, the register rings up CODE 4 and the merchant won't accept the check. This is a great collection tool. Even if the collection customer changes banks, Telechek uses the drivers' license number to track the NSF.

Sub: #2 posted on Wed, 12/20/2006 - 15:58

mcranberra mcranberra

(Posts: 524 | Credits: 71.94)

Yea, that is good info. I really didn't know what it was until about a year ago. Exactly what is the difference between Telechek and Teletrack?

Sub: #3 posted on Wed, 12/20/2006 - 15:59

natdust20 natdust20

(Posts: 1350 | Credits: 164.28)

TeleTrack is an NSF reporting agency with a sub prime customer base. Deferred deposit customers, rent-to-own, buy here-pay here car dealers, etc. They also log inquiries from deferred deposit lenders so you can see if the customer has done business with one of your competitors in the last ninety days.

Sub: #4 posted on Wed, 12/20/2006 - 16:04

mcranberra mcranberra

(Posts: 524 | Credits: 71.94)

I did have some bad checks that were written in anticipation of a paycheck that got mailed to the wrong address, blah, blah, blah.... Those checks have been going through my account over and over again. I got some payday loans to try to offset these NSF amounts and just got myself totally screwed up! Telechek tracked me.
The bad checks have been paid, but it will take a couple business days to clear it up. I feel like I will never be able to get a checking account again.
How many years does it stay in the database before your name is cleared?

Sub: #5 posted on Wed, 12/20/2006 - 16:52

buster71674 buster71674

(Posts: 8 | Credits: 4.24)

Buster - I actually work at a bank. Are you talking about Chexsystems or telecheck? Chexsystems is what banks use to basically blacklist people that have had account abuse or had their account charged-off. A charged-off account is one that the bank closes either because of it being overdrawn an excessive amount of time or the account holder has really abused the system and done bad things. Telecheck is the one that you get reported to if you write bad checks. If you're on Chexsystems, it stays on there for 7 years, at least. Sometimes 10 years. I'm not sure about Telecheck. I hope this helps.

Sub: #6 posted on Wed, 12/20/2006 - 17:23

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Swedishgirl--

I thought a person would only stay on Chexsystems for 5 years?

Sub: #7 posted on Wed, 12/20/2006 - 17:45

brownsugar brownsugar

(Posts: 1389 | Credits: 149.34)

It depends on how the bank reported it and what message they put in the reporting. The least amount of time I've seen is 7 years. There are lots of different codes banks put on their Chexsystems report. When I run Chexsystems on someone to open a new account, my system tells me what year it was reported and the reasons the bank gave for reporting it. If I then call Chexsystems with my banks code, I can get more info like what name it was reported under and what bank reported them. A lot of people don't realize that, even if you pay back the bank that reported you, you will still have a Chexsystems record. It will be marked as paid, but it will still be there. Lots of banks still won't open an account for you. And, most banks won't remove you from Chexsystems, even if you ask them to after paying. It's usually something you just have to wait out.

Sub: #8 posted on Wed, 12/20/2006 - 17:50

swedishgirl swedishgirl

(Posts: 326 | Credits: 36.32)

My checking account is in the red and I'm afraid to correct that because of the PDL's and their outrageous charges. As an example, I took out a PDL on December 4th for $300, from an online company called USFastcash. I got an email today and they told me IF I pay them $510 by tomorrow, December 21st, they will consider it paid in full. I have 5 more of these stupid PDL's. The bank was very unsympathetic, and I don't blame them because my account looks terrible. I appreciate your information, but I think I'm sunk! Thanks.

Sub: #9 posted on Wed, 12/20/2006 - 17:52

buster71674 buster71674

(Posts: 8 | Credits: 4.24)

I am not sure which system my bank uses. The bad checks have been paid, it is these PDL's that are out of control and I don't think I can fix it in time!

Sub: #10 posted on Wed, 12/20/2006 - 17:54

buster71674 buster71674

(Posts: 8 | Credits: 4.24)

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