Chex Account

The Chexsystem provides banking information and verification services to its members to help them in identifying applicants who have a history of misusing their bank accounts. The “members” who register to use this system are banks, credit unions and other financial institutions. They essentially check into the banking habits and histories of potential applicants for accounts before they approve them.

Chexsystems can be very useful when it comes to finding perpetrators of fraud, identity theft and other types of account abuses. Individuals who make a habit of writing bad checks can be found easily through this system and their criminal activities reported and caught.

Unfortunately sometimes those who make an occasional banking mishap still end up blacklisted in the Chexsystem. In fact there have been instances where bank customers were reported for amounts of money that were no greater than $50 or $100.

If you have had a banking history that is rife with issues then learning as much as you can about Chexsystems and acquiring a bank account following it is important to know about. Let us look at that now.

What You Need to Know

You may wonder how long your name will have a file in the Chexsystem and how long you will have to cope with being in the bad books of the banks that you wish to do business with. Your report will remain on file with Chexsystems for a period of five years. There are only two exceptions to this rule- if the financial institution that submitted your name to the database requests that it be removed or if the law deems it an obligation that it be removed. You can go through the appeal process if you feel that your name has been unfairly entered into the Chexsystems.

If money is still owing on a former account then this may be considered account mishandling and could lead to a report in the Chexsystem. However if the money owing has been paid to the Chexsystem Collection Agency then the account must be marked as paid.

You are entitled to a free copy of your Chexsystems consumer report once a year. This is mandated as law under the Fair and Accurate Credit Transaction Act (FACTA) which was amended from the Fair Credit Reporting Act (FCRA). If you have been reported to Chexsystems then you should request your copy yearly as it is your right to do so.

What to Do If You End Up in Chexsystems

If you are having trouble opening a new bank account and you find out that you have been reported to the Chexsystems then do not immediately rush out and close any of your checking accounts or saving accounts. What you need to do is your absolute best to keep all of your bank account balances in the positive. Anything you can do to keep your accounts positive as opposed to negative is essential.

If you have any overdraft fees owing then pay them right away without delay. You also need to honor all of the checks that you have recently written. Once all of the overdraft fees have been paid in full and everyone you have written checks to have received the money that you owe them it is important that you ensure that a brief explanation that you have taken positive action is entered into your Chexsystems file. This will work in your favor when banks check your account in the future. They will see that you are making efforts to improve your past mistakes.

Finding a bank that will approve you for an account, be it a checking account, savings account or another type of account while your file is active in the Chexsystems database will be a challenge but there are banks both offline and online that will give you the opportunity to prove your bank worthiness. Turn your attention to accounts known as second chance accounts.

Whatever you do, keep plugging away and don’t give up! The future of your banking needs depends upon your persistence and inner fortitude.