What is Chex Systems?

09 Jan What is Chex Systems?

ChexSystems maintains records of consumers who have overdrawn their bank accounts and reports that information to member banks, credit unions and other depository institutions. A bad Chex Systems report can keep you from opening a new savings or checking account.

We all know (or think we know) what a credit bureau is. Experion, Trans Union or Equifax each maintain records of your credit history including payments and applications for credit. Chex Systems does the same for your banking records.

A banking institution joins Chex Systems and then reports to it whenever a customer overdraws that account. Note that it does not maintain a record of your bank account balances, it only reports when you have “abused” your bank account privileges. You can see a sample Chex Systems report here.

“ConnecticutGene Melchionne is a bankruptcy lawyer covering the entire State of Connecticut. He can often be found on Google+ and Twitter, where he shares information about consumer protection issues and personal finance.

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