ChexSystems is a credit reporting agency that collects
and reports consumer banking incidents to member banks and
credit unions. Their purpose is to reduce fraud and account
abuse. Chexsystems also could protect consumers from becoming
victims of identity theft and fraud. Sometimes things happen
beyond a person's control, bad luck or fraud...then that
incident gets reported to ChexSystems, and bang no checking
account. Nice folks get stuck in ChexSystems, too!
For what reason are consumers reported to ChexSystems? Here are
Bank was unable to collect for an overdraft
ATM transaction, or automatic payment which bank honored on
insufficient funds, not repaid.
Multiple overdrafts, not covered.
Savings Account, debit card or ATM abuse.
Providing false information in opening account.