Chex Account

Banks are in business to make money, not lose money which is why they rely heavily on ChexSystems reporting.  That said, if you default on a bank account with overdrafts or other unpaid fees (regardless of the cause or situations that led to this) you will likely wind up on the dreaded list of ChexSystems.

What exactly is ChexSystems?

ChexSystems Inc. is a Consumer Credit Reporting Agency to the banking industry.  Their sole responsibility is to report negative information about a person or company’s banking history.  This data is supplied to banks to help them to gauge your risk level.

ChexSystems is similar to your regular credit report – only it applies to your banking profile.  If you’ve been reported to ChexSystems it can remain on your financial profile for up to 5 years (even if you clear the debt).  And if banks and other financial institutions get a hold of this negative information about you, they have the right to deny you a new bank account.

Now be advised that ChexSystems Inc. doesn’t force banks to do anything.  Their whole job is simply act as a reporter of negative banking information.  Banks can choose to use this information as reason to deny you a bank account — or they can choose to ignore it and go ahead and grant you an account anyway.  But that’s a slim chance they’ll ever do that.  Banks are already in hot water as it is these days; they definitely don’t want to take any more chances of losing money and having another default on their books.

Your Rights

As with any other consumer credit reporting agency, you have the right to dispute negative items reported about you through ChexSystems.  Especially is you’ve been a victim of identity theft or bank reporting errors; unfortunately these things do happen.  This would definitely be grounds for you to file a dispute.  You can learn more about the dispute resolution process by visiting ChexSystems Website at ConsumerDebit.com

What can I do right now for my banking needs?

I do understand that being without a bank account is a frustrating thing.  After all, it is one of the basic necessities of life.  Fortunately, even if you’re dealing with a ChexSystems fight right now, there are some very reliable Second Chance Banking resources on the market you can explore by doing a search.

In fact, many people who were in your exact situation have found that they enjoy these alternative banking solutions even better.  Most second chance banking methods still enable you to have similar features like traditional checking accounts such as: Direct deposit, bill pay options, Visa or MasterCard branded debit cards, etc…  And some even provide additional benefits over & beyond a traditional banking account.  Best of all they don’t use ChexSystems and credit reports to base their approval of you.  Everyone is given a second chance with Second Chance Checking.  So no need to feel hopeless, there are other options available for you to continue functioning comfortably in the financial mainstream.