So what is ChexSystems ® and how can being reported effect you?
ChexSystems ®, Chex Systems Inc., or check systems as refereed to by consumers is a consumer credit reporting agency much like Equifax, Experian, and TransUnion. How they differ is that the major 3 credit reporting agencies manage data about how a consumer handles their credit relationships with verious lenders. ChexSystems ® maintains data related to how a consumer has handled their deposit accounts at banking institutions so checking and savings. It is owned by Fidelity Nation Information Services or (FIS).
This means that the more than 80% of banks that report to ChexSystems ® and close an account due to negative activity like overdrafts, NSF, bounced check deposits, and suspected fraud activity will provided the information on the individual who’s account was closed to ChexSystems ®. Now if that individual goes to another bank that uses ChexSystems ® in the approval process for opening an new account. They will see that, that individual has had a previous issue with a different banking institution and this information can weigh on the decisions for that bank to approve or deny the opening of that account. While the final decision to approve or deny an account is ultimately for that bank to make. The information provided by ChexSystems ® can have a major impact on their decision.
With over 9,000 different banking institutions, at over 100,000 different branches updating the information that is reported to ChexSystems ® nearly 350,000 times a day. The options become very limited on the amount of banks that don’t use ChexSystems ® to verify account information. Chex Systems Inc. is located in Woodbury, MN and you can call direct to order a copy of your ChexSystems ® consumer report at 1 (800) 428-9623 which is the ChexSystems phone number or go directly to their website by clicking here and order the report completely free of charge.
Consumer Reporting Agencies like Chex Systems Inc. are governed by the Fair Credit Reporting Act (FCRA) enforced by the Federal Trade Commission (FTC) and as with any other Consumer Credit Reporting Agency, you have the right to dispute negative information contained in your Consumer Reports.