Consumer Credit Counseling

ChexSystems (SM), previously registered to "Chex Systems, Inc", is a deposit account verification service provider and a consumer credit reporting agency. It provides information regarding account mishandling to its members (financial institutions) when someone applies for a new account.

If any of your account was previously closed by a bank for check overdrafts, unsatisfied balances, depositing fraudulent checks or suspicious account handling, ChexSystems will store and will send the information to the members. The report stays there at ChexSystems for five years.

How it works:
U.S. banks and credit unions report incidents to ChexSystems to protect themselves and other banks in the future. You get reported to ChexSystems if your account is closed for "cause." What is "for cause?" Banks differ greatly between them as to what valid reasons are for closing an account.

Here are some examples:
• The bank was unable to collect for an overdraft, ATM transaction, or automatic payment which they honored on insufficient funds.(Regardless of amount, and often without waiting more than a few days!)
• Multiple overdrafts.
• Savings account, debit card or ATM abuse.
• Fraud.
• Providing false information in opening account.

Each incident stays on your record with ChexSystems for FIVE full years from the date the incident was reported. You are entitled to see your Chexsystems Report once a year for FREE, just like you are entitled to a free credit report from Experian, Equifax and Transunion.

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."