ChexSystems: Who Are They And what do They Do?

August 9, 2011
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ChexSystems is a company that maintains a paid membership service used in the banking industry. The members consist mainly of banks and credit unions, but may include other types of financial institutions. Provides its members with what he calls the deposit account verification services. The members use the information provided by ChexSystems to identify applicants who have been classified as a suspected history of banking. ChexSystems maintains a central database that contains all information reported to them. This information is shared among members of the network of banks and credit unions to assess the level of risk in opening new accounts. When someone applies to open a new checking account at a member bank ChexSystems, ChexSystems research is done. If the research which states that the person has had previous problems with another bank, that person is often denied the opening of the account based on the ChexSystems report.

For this ChexSystems is rightly considered a consumer reporting agency of consumers. It makes ChexSystems subject to the same laws that credit agencies are all familiar with: Experian, Equifax and Trans Union. And as the credit bureaus? ChexSystems neither approves nor the decline in new accounts. Only maintained, and reports the information in your database that bank members have submitted to them. Individual who is a bank based on the ChexSystems report, you decide whether to approve the new account. It is understandable? most people in America who have common current account, and never had problems, have never heard of ChexSystems.

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