What Should I Know About ChexSystems?
If you asked the average person in America about ChexSystems, you’d probably be met with a blank stare. A few people might know about this agency, but they’re the unlucky few who know how much it can affect them. If you’re on ChexSystems’ lists, you’ve probably had to deal with the frustration of being unable to create a new bank account, write checks, or even use an ATM. These are basic banking conveniences that everyone else takes for granted. Millions of Americans have had the experience of being on this list, and this means they can’t take advantage of these banking conveniences.
If you are on this list, it’s vital to learn what ChexSystems is and is not. For one, ChexSystems isn’t a financial institution or a bank they’re a consumer reporting agency that keeps a national database of people who have been reported to them. Reasons for being reported to ChexSystems can include writing bad checks, unpaid bank debt, defrauding banks, or too many items reported for non-sufficient funds (NSF). ChexSystems is owned by eFunds, Inc., a large, publicly traded company. However, ChexSystems keeps a low profile as far as the public is concerned. It’s hard to find information about them, and they don’t maintain a webpage.
Like other CRAs (TransUnion and Experian are examples), ChexSystems distances itself from the problems it creates in people’s lives. As far as ChexSystems is concerned, it is merely a provider of information, and users of its data are responsible for what they do with it, like denying customers bank accounts. Marketing materials from ChexSystems state that the company is in no way responsible for the decisions banks make based on their information.
While this position is convenient and good for ChexSystems’ reputation, it doesn’t take into account that this company and other CRAs routinely make mistakes. Any error on your ChexSystems record can have a serious effect on your life, preventing you from getting a new account, or even causing your bank to terminate your relationship with them. ChexSystems holds a lot of power, but chooses not to be responsible for the effects of that power.
Some consumers have had their banking records destroyed by identity theft. For instance, if an identity thief opens an account under your name, using your social security number, they can take out a few payday loans under your identity. Once the funds are withdrawn, the account will be abandoned, causing either NSFs or an account closure. Of course, this doesn’t end up on the record of the identity thief. It ends up on your record instead. Unless you take steps to remedy the situation, you’ll be on ChexSystems’ list of offenders for five years or more.
What this means for consumers is that if you’ve received notification of a bad mark in your ChexSystems file, it’s vital to act fast and get it resolved. Of course, the company doesn’t make it easy to get things cleared up, even if it’s obviously an error on their part. If you’d like to find out how to get your record clear, get more information about ChexSystems. You don’t have to let ChexSystems tell you what to do.
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