Credit bureau checks for new accounts

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Question:

What types of accounts does a financial institution need prior authorization for from a client before running Chexsystems? How does a financial institution have to notify a client that they are going to run Chexsystems? Regarding business clients - we run biz Chexsystems on the business and the beneficial owner, correct? How do we have to notify them that we are pulling their credit to determine if we can open a new account?

Answer:

You have the right to pull credit on any account applicant without authorization or notification.

On business accounts, unless the individual is going to be personally liable on the account, you would need written permission. Being an owner of a business or an authorized signer on a business account does not automatically make an individual personally liable.