What Are ChexSystems Banks?
If you have a history of bank overdrafts, bounced checks, or unpaid balanced to your bank. You may already be very familiar with ChexSystems ® or Chex Systems Inc. a company owned by FIS. If you haven’t heard of ChexSystems ® banks, or perhaps your bank has flagged you for the first time in the ChexSystems ® database. Chex Systems Inc. is an agency that monitors checking and savings accounts to help protect banks. ChexSystems ® banks are banks that use the ChexSystems ® database, and are subscribed to a network that provides negative banking information on customers. Who might have had trouble with bad checks, overdrafts, or outstanding bank balances, and may cause financial trouble to the banks who would set up new checking, and savings accounts for them.
How Can Your Name Get Listed From ChexSystems ® Banks?
There are many ways to wind up on a ChexSystems ® banks list. Most commonly a bank will flag you in the ChexSystems ® database for having an outstanding balance due to an overdraft, bounced checks, or even the deposit of a bad check. In the majority of states, writing bad checks is a crime. The banks who send money based on those bad checks will cause a major financial problem and losses for their bank. This is why they protect themselves by being ChexSystems ® banks which gives them access to the Chex Systems Inc. database. The majority of people who are listed by a ChexSystems ® bank are because of large negative bank balance that goes unpaid for a long period of time and/or results in the closing of your savings or checking account. Not paying your negative checking or savings account balance shows that you are not responsible with your finances, and will label you as a higher risk category than other customers that might try to open an account a ChexSystems ® banks.
The hard part about finding your name in the ChexSystems ® database list is that ChexSystems ® banks normally will not explain why they reject your application for a checking account. Typically banks will use a generic phrasing for your rejection such as “you’re listed in ChexSystems ®” or something to that effect so it isn’t immediately apparent that an existing negative balance or closed account is causing you not to get this new account. The majority people of people who have this happen my or may not know the cause of why they are listed in the ChexSystems ® database or for that matter what ChexSystems ® is? This causes the consumer to usually resort in some kind of second change checking account because they have not gathered all the facts on their file.
Do All ChexSystems ® Banks Not Accept Listed People?
Absolutely not. Just because banks that use the ChexSystems ® database, and have information about your banking history, and may be alerted that you could be a potential risk for the bank. Doesn’t mean that the bank won’t work with you to set up a banking relationship. However this is of the bank branch managers to decide the majority of the time it depends on what you were listed for? If it was an overdraft vs suspected fraud activity they may overlook the overdraft by deny someone with suspected fraud. ChexSystems ® is a reported information system, not a decision making system and each bank will make up their own mind whether or not to allow you to set up new accounts. Some ChexSystems ® banks have special terms for bad banker checking accounts, and will work with you even if you are a moderate risk. Others will ask you to open up a secured checking account where you provide valuable materials as collateral to help reduce the amount of risk that the ChexSystems ® bank has on creating your account.
Are There Banks That Do Not Use ChexSystems ®?
The bad news is that most major banks today use the ChexSystems ® datbase, or something similar. The list of ChexSystems ® banks is growing every year. The good news is that there are banks that do not use the ChexSystems ® database but most are credit unions that require access for example Navy Federal Credit Union requires you to be active duty, served, retired, or family of military to join and they do not use the Chex Systems Inc. database. You are free to call around and ask some of your local banks directly. But don’t expect that bank to answer your question directly, since all banks don’t want to take on more risk than they need to, so be prepared to get the runaround. Also remember that these banks that do not use the ChexSystems ® database can be few and far between causing you to waste money driving out of your way to make deposits. Or the amount of fees you will rack up using atm’s that are not at the bank branch. The best solution is to get removed from the database so you can start using ChexSystems ® banks again for convenience.
How Can I Be Removed From ChexSystems ® Database?
Unfortunately getting your name removed from the Chex Systems database isn’t easy task to take on yourself, and with tons of websites on the internet who claim that you can quickly trick the banks and ChexSystems ® with their free dispute letters. But the truth is there is no fast “free” way out. The first step to getting your name off the list is to sort out all of your financial accounts and make sure that all of them are to date. This means if you have an outstanding balance you know about with a bank contact them and settle that amount. The majority of the time they will settle for much less than what you currently owe. So if you have unpaid balances or outstanding bad bank accounts you need to contact the ChexSystems ® banks, preferably the branch managers, and come up with a settlement to make the account paid in full. That could be paying back bad debts, paying off fees or just making sure your account is current. Remember you can settle these for a lesser amount but you need something stating they are settled accounts.
Chex Systems Inc. themselves won’t take your name off the list at your direction so calling them doesn’t really do a lot of good. They will need information from the bank that reported you that you have settled your accounts with them, and that you are no longer a risk. The problem in this, is that ChexSystems ® banks can’t update the status codes that submitted you under only that you have or have not settled a debt with them and that you are paid in full. So as stated above if you are listed for something like “suspected fraud activity” which can be caused by someone writing you a bad check, you deposit it into your account. The ChexSystems ® bank approves the funds, you spend the money and then weeks later they retract the funds because the check was bad. If this caused you to have a negative balance and you did not pay the bank back immediately you will be listed for “suspected fraud activity” and good luck after that point getting a bank account without that information being removed from your ChexSystems ® file.
If you feel that you have a legitimate case to have your name removed from the Chex Systems Inc. database, and the bank manager won’t work with you. Then it is time to start down the removal process with a quality company like ours to help you get removed from the ChexSystems ® database. You can do so by contacted us at the number above.
ChexSystems ® banks can cause you a lot of financial hardship, but you need to remember that you aren’t on the Chex Systems Inc. database for no reason, and ChexSystems ® banks take their financial risk very seriously. After all if banks take on too much risk they are not going to be around very long. So they are just looking out for the good of the company and their customers. There are ways to find non ChexSystems ® banks however most of those banks will be second chance accounts. An alternative to paying lots of fees with second chance accounts would be to file dispute against the information reported to ChexSystems ® by the bank to have it removed from their database. If this information is removed you will have no issue in restoring your banking privileges at that point in time. Contact us today at 1 (877) 432-4818 to discuss the options you have in resolving this information.