ChexSystems

If you recently applied for a checking account and were denied because of a negative banking history, you’re not alone. Approximately 85% of banks use a company called Chexsystems when you apply for a new checking account. Chexsystems is the safety net for bank institutions to weed out people who have committed fraud or identity theft, but if you get caught in the net it can be crippling. And most of us absolutely require the use of a bank checking account to manage our money, pay bills, and receive direct deposits from an employer or government agency. Here’s everything you need to know about Chexsystems and how to get your name removed from their database.

What is ChexSystems?

Most consumers aren’t familiar with ChexSystems until they’re denied a new bank account or a merchant declines to accept their check. Briefly, ChexSystems is a consumer reporting agency (CRA) that tracks your checking and savings account activity. It’s similar to credit reporting agencies Equifax, Experian and TransUnion, which collect data …

Read More »