Ask the average American who or what "ChexSystems" is, and they will have no idea what you are talking about! The people who do know about ChexSystems are usually painfully aware of how severely it can affect their lives. If you are on ChexSystems’ list, you have probably experienced the frustration of not being able to open a new bank account, write checks, or use an ATM card (the core banking conveniences that everyone seems to take for granted). Unfortunately, millions of Americans are on (or have been on) the list, and are unable to enjoy these banking conveniences.
Luckily, there are great second chance bank accounts available to people who are on the list. You just need to know where to look. Even if you find a great second chance bank account, it is still important for you to know about ChexSystems.
ChexSystems is not a bank or a financial institution. Instead, they are a large consumer reporting agency that operates a database of banking customers who have been reported for writing bad checks, defrauding banks, having unpaid bank debts, or having too many "non-sufficient funds" (NSF) items. ChexSystems tries to keep a low public profile. They don't have a company Web site, and it is hard to find information about them.
Like the other large credit bureaus, ChexSystems tries to distance itself from the problems it causes, claiming that it is simply a provider of information, and that it is the banks who use ChexSystems data who are the bad guys for turning customers down for new bank accounts. ChexSystems’ marketing materials claim that the company has no responsibility for the decisions banks make, stating that "ChexSystems neither approves nor declines accounts for banks and credit unions. The decision is entirely up to them."
The fact is that ChexSystems is not perfect. They make mistakes and errors can find their way into consumers records. The problem is that an error in a ChexSystem record has a severe and dramatic impact on a consumer. Even a simple error in a consumer's banking history can prevent that customer from opening a new bank account (or could even result in the customer having their current banking relationship terminated!). That is a LOT of power for a CRA to have.
As a consumer, if you have been informed that you have a bad mark in your ChexSystems file, you need to act quickly to try to resolve it. Unfortunately, ChexSystems doesn't make it easy for you to clear up a bad mark (even if it is clearly in error). Dont let ChexSystems bully you around!
Your best, and quickest, solution to deal with your ChexSystems problems is to open a second chance bank account today.
