ChexSystems is familiar to those who have gotten a call from their bank, informing them that their account has been canceled, or they have been refused a new checking account. If you've ever been denied a checking or savings account, then you've undoubtedly heard of ChexSystems. However, if nothing like this has ever occurred for you, then you may have never heard of ChexSystems before.
ChexSystems is a consumer reporting agency that keeps track of your checking and savings account transactions according to the Fair Credit Reporting Act (FCRA). Banks provide data to the agency. The account holder's Social Security Number and current account health are included in this information. Your ChexSystems report will cover items like account overdrafts, rejected checks, and suspected incidents of fraud. Many of these things will remain on your record for the next five years or more. ChexSystems reports are used by most banks and credit unions when deciding whether to create a new account for you. Thankfully, many banks and credit unions are turning away from using ChexSystems reports these days.
ChexSystems is said to be used by more than 85% of US banks, and they have information on approximately 300M American customers. Every negative listing on a financial activity report is visible to every bank and credit union that subscribes to ChexSystems, thereby making it impossible to open a new account after being barred from your present bank.
If you are one of the millions of people in the United States who have had problems due to banking errors in the past, then rest assured! You can still re-establish yourself in the financial system with the assistance of the above listed financial institutions that are not affiliated with ChexSystems.