The Medical Information Bureau and ChexSystems are two entities you have likely never heard of. These organizations are tracking your banking and medical history, and it is more important than ever that you gain access to your files.

The Medical Information Bureau

Think of the MIB as sort of a credit bureau for your medical history.  The MIB also falls under the Fair Credit Reporting Act and this means that they have the same responsibility as a credit bureau for maintaining accurate information in your file.  The MIB claims to only maintain a file on about 15 to 20 percent of individuals that have applied for insurance coverage.  If you have not applied for insurance during the past 7 years, you may not have a MIB file. 

Rights To Your MIB File Under The Fair Credit Reporting Act

1.  You are entitled to a free copy of your file once each year.

2.  If there is incorrect information in your file you have the right to have it corrected.

3.  You can add a ‘statement of dispute’ to explain any derogatory medical information in your file.

4.  Information can be kept on file by the MIB for up to 7 years.

What Information Does The MIB Keep In Its Files?

Credit information

Medical tests and results

Medical conditions

Motor vehicle reports (poor driving history and accidents)

Habits such as smoking, overeating, gambling, drugs

Hazardous avocations and hobbies

Why Is It Important For You To Obtain Your MIB File?

If you plan to apply for insurance, your approval and what rate you pay may be directly impacted by information in your MIB file.  Prospective employers may also review your file during the interview process.  The video above shares a shocking example of how difficult a job search can be if you have negative information in your MIB report. 

How Can You Get A Free Copy Of Your MIB File?

Details on how to obtain a free copy of your MIB file can be found here.  You have the option to make your request by phone or online.

ChexSystems

Another little known organization is ChexSystems.  More than 80% of U.S. banks use ChexSystems to check on their customers before approving a new bank account.  Just as the MIB, they also fall under the same rules as the credit bureaus.  There are some big differences, however.  One major criticism of the organization is that they don't produce a risk score, since they only maintain negative information on individuals.  This means, in theory, that you could have a great banking history for thirty years and have one problem and end up being blacklisted from having a bank account.

How the system works is that member banks and financial institutions report to ChexSystems about individuals that have so called negative events within the banking industry. This is usually related to unresolved transactions involving insufficient funds.  If you carefully manage your bank account, you might believe that you could never run afoul of ChexSystems. There are many horror stories that are well documented and demonstrate how easily things can get out of hand.

Your Rights In Dealing With ChexSystems

Since ChexSystems is regulated as a credit bureau, you have all the full benefit of the Fair Credit Reporting Act in dealing with them.  Request a copy of consumer report file and carefully review it to determine if their is any inaccurate information in your file.  You can challenge any incorrect information and have it removed or updated.

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