U.S. banks and credit unions report “mis-handled accounts” to ChexSystems to protect themselves and other banks in the future. Some of these incidents include:
- Account closed “for cause”.
- Banks differ greatly between them as to what valid reasons are for closing an account.
Bank was unable to collect for an overdraft, ATM transaction, or automatic payment that they honored on insufficient funds. Banks report this to ChexSystems regardless of amount and often without waiting more than a few days after mailing a notice!
- Multiple overdrafts.
- Savings Account, debit card or ATM abuse.
- Fraud.
- Providing false information in opening account.
To learn if you have any incidents reported, you can contact ChexSystems and order a copy of your report. To see what type of information is in your report, see the Sample Report.
Each incident stays on your record with ChexSystems for FIVE full years from the date the incident was reported.
Getting an incident reported to ChexSystems is the Kiss Of Death for your financial future.
Most banks now say:
“Our bank policy is that we will not open a checking account for you if you have one or more incidents reported to ChexSystems.”
ChexSystems sales staff strongly encourages banks to “not open accounts for anyone with a negative in their ChexSystems record”, and also requests that banks “not delete incidents from the ChexSystems records, even if the incident is resolved amicably.” Of course, ChexSystems denies that this is their position, but we’ve received several tips from bankers and former ChexSystems staff who say this does occur.
ChexSystems performs collections for banks.
A service within ChexSystems called ChexSystems Collections serves banks and attempts to collect their losses on their demand deposit accounts (i.e., checking and savings accounts).
The company that owns ChexSystems, Deluxe Corporation, also owns Current Checks (AKA Checks Unlimited), Designer Checks, EFunds Corporation, SCAN (a.k.a. Shared Check Authorization Network), the Debit Bureau, which tracks your check-writing history, and Deluxe Direct Marketing Services
Did you know?
Every time you order blank checks from Deluxe or one of their subsidiaries, information about you is sent to ChexSystems and their collections agency and direct marketing relationships. This information includes private, personal information such as your bank account number, current addres, and more. This occurs only when you order checks from Deluxe, Current Checks, Checks Unlimited, or Designer checks. They transmit this information to their sister companies ChexSystems, Debit Bureau, EFunds and SCAN.
Along the same lines, did you know that information that you provide to a bank in your bank account application also is given to ChexSystems, Debit Bureau, EFunds and SCAN?
