FAQ

Q What is ChexSystems?

A ChexSystems is a Consumer Credit Reporting Agency for banks (i.e. Bank of America, Wells Fargo, JP Morgan Chase…)

Q How do I know if I am in ChexSystems?

A If you were recently declined a bank account and/or you have money owed to banks, you are most likely in ChexSystems.

Q How long will I remain in ChexSystems?

A 5 years since the posting date. Possibly longer if you still owe money.

Q If I pay the bank in full, will they remove me from ChexSystems?

A NO! Paying the bank WILL NOT get you removed from ChexSystems. You need to get the bank to remove the risk put against you. Only then can you be completely removed.

Q Are my other accounts safe even though I am in ChexSystems?

A NO! If your current bank runs your social security number and discovers you are in ChexSystems, they can close your bank account after providing a 10 day warning. Your recourse is extremely limited.

Q Does ChexSystems affect my Credit Reports?

A It only affects your Credit Reports and scores if you owe money to a bank and they sell/outsource the debt to a collection agency which then reports it to your credit.

Q I can’t write checks; am I in ChexSystems?

A If you have a bank account and cannot write checks, you need to contact SCAN and/or TeleCheck.

Q What are the reasons for being reported to ChexSystems?

A Overdrafts, Non-Sufficient Funds, Account Abuse, ATM Transaction Abuse, Suspected Fraud

QWhat is ChexSystems Overdrafts and Non-Sufficient Funds?

A When an account is past due for a period over 30 days. Account balance is charged over limit fees, closed and reports to ChexSystems.

Q What does ChexSystems Account Abuse mean?

A When transactions involve multiple bounced checks and/or bad checks. Wells Fargo reports account abuse for overdrafts as well.

Q What is ChexSystems Suspected Fraud?

A When you deposit a check that is “bad” (Closed account, falsified bank account) you are fully liable. If not handled properly, the bank will claim that you did this purposely, but without proof, they lable it under ChexSystems as Suspected Fraud.