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There have been many posts asking what the difference is between Teletrack and Telecheck - I thought it might be helpful to have this information as a sticky to clear up any confusion.

This nationwide database is used solely by payday lenders, some rent-to-own retail stores, and a few other high-risk lenders. If your payday lender uses this database, and you default on their loan (or in some cases, just tick them off by paying late), they will report their experience with you to Teletrac, which will make it difficult to obtain another payday loan. But if you're here, then you're probably looking to get OUT of the payday lending trap, right? So if you never intend to ever take out another payday loan, having your name on Teletrac shouldn't be a problem.
Teletrac does not report to credit bureaus, so this has no effect on your credit report, or your ability to obtain a bank account.

Telecheck or Chexsystems:
These nationwide databases are used by banks to report their experience with their customers. If you have fraudulent activity on a bank account, your account is closed due to NSF checks with a negative balance, and you don't pay it right away, the bank will report this to Telecheck or Chexsystems. Having your name on this database will make it difficult to obtain a checking account in the future, until you pay it off and have your information removed from their records.

Our member, Goudah2424, has compiled a list of banks that do not use Chexsystems to verify new accountholders, and it's been very helpful! However, it would be wise to pay off the debt reported to Chexsystems or Telecheck, to avoid any future difficulty.

Great post Sue! I think it will clear up a lot of confusion.

I know I never even heard of Teletrac until I started with Payday Loans.

Sub: #1 posted on Sat, 08/18/2007 - 07:11

finsfan13 finsfan13
(Posts: 6919 | Credits: )

Thanks, Fins!

I know, many have not heard of these databases until they run into Teletrac on a payday loan, and then it gets confusing because of Telecheck and Chexsystems.

You know the payday lending industry started Teletrac and made the name similar to Telecheck in order to make it sound the people would fear it. :evil:

Sub: #2 posted on Sat, 08/18/2007 - 07:14

(Posts: 4583 | Credits: )

Thanks for the great post, Sue!! I know, not long ago there was a discussion about who did telecheck and who teletrac, this clears that up!! :D Karen

Sub: #3 posted on Sat, 08/18/2007 - 08:50

Bossy4455 Bossy4455
(Posts: 5854 | Credits: )

Great job Sue! This definatly should be a sticky! :D

Sub: #4 posted on Mon, 08/27/2007 - 12:51

goudah2424 goudah2424

(Posts: 7935 | Credits: )

Thanks for the clarification Sue.

Sub: #5 posted on Sat, 09/15/2007 - 14:28

ladybug ladybug

(Posts: 2753 | Credits: )

Thank you for that information!! I have sent a letter to TeleCheck to see if I have any outstanding checks.

Sub: #6 posted on Fri, 09/28/2007 - 08:44

krisT krisT

(Posts: 133 | Credits: )

How do i contact goudah 2424 to get a list of bank s in oklahoma that don't use check systems or teletrack

Sub: #7 posted on Mon, 10/08/2007 - 11:44


You need to register and then pm her or
you can use this link to e mail her

Sub: #8 posted on Mon, 10/08/2007 - 11:49

kashzan kashzan

(Posts: 5401 | Credits: )

Personally I would never pay off chexsystems .. ( maybe Telecheck ) unless you are wanting to do the " moral thing" paying off chexsystems will NOT remove your name from their data base and you will still not be able to open a checking account. Telecheck is a bit different

Big difference is that telecheck will remove you if paid and chexsystems will not unless the bank tells them to. Both are CRA's

According to the Federal Trade Commission they are considered a consumer reporting agency, as specified in the Fair Credit Reporting Act.

They collect, store and report consumer information relating to check transactions and bank accounts.

Also, Telecheck activities are governed by two federal laws because they collect and sell consumer information, and also collect debts.

The Fair Credit Reporting Act - for consumer information reporting.
The Fair Debt Collection Practices Act - for check collection activities.

Here is the list of banks and credit unions that may help you if you find that you are on chexsystems

Sub: #9 posted on Sun, 11/11/2007 - 02:13

Mary Adkins Matthews Mary Adkins Matthews
Moderators Cum Industry Expert
(Posts: 755 | Credits: )

I have been diligently working the past month to get the 2 accts that are listed on chex systems paid off and as of monday next week they will be. I recently got married and cannot get put on my husbands checking account until these are taken care of. My question is, how hard is it to get chex sytems updated to reflect a zero balance.

Sub: #10 posted on Fri, 09/19/2008 - 06:04


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