I have recently learned the bank has hired a person on ChexSystems for a teller position. Is it just me or is that not putting the bank at risk? Would you please share your opinion on this matter. I don't know of any regulation that prohibits the hiring of someone on ChexSystems but it would stand to reason that if the bank will not open a deposit account for such a person why would they want them working for them?

It may be that there is more to it than just being on Chexsystems. Hopefully the HR or hiring manager got a reasonable explanation as to the circumstances surrounding the fact that they were reported. They also might have provided HR with additional documenation that never got reflected on Chexsystems.

If not, I agree, I certainly wouldn't have hired them.

At a former bank, when I went to open an account, I was told I was in Chexsystems and they couldn't open an account - imagine my surprise. Inquiries to chexsystems showed a check I had "guaranteed with my drivers license" at an auto parts store, and the person who wrote the bad check was someone i had gone to high school with but had not seen in over a year - the chexsystems notice was from the same tiemframe I had seen them. Apparently he had lifted my DL# at a bar after a soccer game and made a new license with his name and my DL#. Chexsystems was very quick to clear this up, and my honor was quickly restored. Police were not even interested in taking a report.

Right Happy, chex systems is more than just bank relationship history, it gives you red flags to help in the identifying nad prevention of ID theft. Always a good idea to ask questions if you are having a bad feeling from the reported information.

Did your bank pull the report based on the application for employment or because the new employee was opening an account? Since you used Chex Systems, I assume it was the latter and it was done after he or she was hired.

I'm no expert on the use of consumer reports in connection with employment, but I would not assume that a report legally pulled in connection with an application to do business with your bank could also be used for employment purposes. I think there are some extra hoops to jump through. Start here...

A few points:

Did you actually see the ChexSystems report, or was she just declined for a deposit account?

If she was just declined for a deposit account by qualifile, then it could simply be that she has a security freeze on chexsystems, or some other reason other than a derogatory on her report.

If you saw the actual report, I guess it depends on the situation.

There's no way I'd want a teller with multiple reports of fraud, acct abuse, or kiting, on her report. OTOH, I wouldn't be overly worried about a teller who say had a paid NSF closure from 4 years ago, with no other derogs.

Also, does your FI have a policy to address this? If your bank has a policy that chexsystems derogs=no hire, then well, there you have it. Otherwise, why are you even looking...

Are individuals who don't meet your banks underwriting standards for a credit card barred from being tellers?

Are individuals who don't meet your banks underwriting standards for a car loan barred from being tellers?

Are individuals who don't meet your banks underwriting standards for a mortgage barred from being tellers?

See where I'm going with this?

If your bank has a policy that chexsystems derogs=no hire, then well, there you have it.

And you better have your use of credit reports in the employment process policies and procedures in place.