The ChexSystems provides deposit account verification services to its financial institution members to help them to identify account applicants that may have a history of account mishandling. The service sounds useful, and it is for banks and financial institutions. It helps them be alert cases of fraud and other abuses. Those who routinely and intentionally write bad checks should have their criminal activities recorded in ChexSystems. However, not all negative activities are cases of fraud or intentional misuse. Many consumers have written at least one check that has bounced and if you had a checking account closed in the negative balance and did not pay the negative balance in time, the bank will have reported the consumer to the ChexSystems.
Every report submitted to the ChexSystems remains on the files for five years, unless the bank or credit union that filed the report with them has it removed or the ChexSystems becomes obligated to remove the file under law. However, if a collection amount is reported is paid, they is obligated to mark the account as being paid.
If you are reported to the ChexSystems make sure not to close any other checking accounts you may have. Pay all of the overdraft fees as soon as possible. Make good on the personal check you have written and are out. Once you have paid the overdraft fees and satisfied everyone that had received a bounced check, then make sure to have a explanation of the matter inserted into your ChexSystems file.
Just because you are on the ChexSystems, there are still alternatives to getting a checking account from a bank. Sometimes this can be overlooked by the bank officer so you may be able to open a new account. There are also many banks On-Line that offer second chance checking accounts to people who has been reported to the ChexSystems.