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.
I know I never even heard of Teletrac until I started with Payday Loans.
Sub: #1 posted on Sat, 08/18/2007 - 07:11finsfan13
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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 same...so people would fear it. :evil:
Sub: #2 posted on Sat, 08/18/2007 - 07:14SUEBEEHONEY70
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Sub: #3 posted on Sat, 08/18/2007 - 08:50Bossy4455
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Sub: #4 posted on Mon, 08/27/2007 - 12:51goudah2424
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Sub: #5 posted on Sat, 09/15/2007 - 14:28ladybug
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Sub: #6 posted on Fri, 09/28/2007 - 08:44krisT
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Sub: #7 posted on Mon, 10/08/2007 - 11:44Unregistered
you can use this link to e mail her
Sub: #8 posted on Mon, 10/08/2007 - 11:49kashzan
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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 - 02:13Mary Adkins Matthews
Moderators Cum Industry Expert
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Sub: #10 posted on Fri, 09/19/2008 - 06:04Unregistered