What Is ChexSystems Reporting?
ChexSystems is a banking system used by most financial institutions. This system tracks people's banking history and is used when a person opens a new account at a financial institution. When a bank has a problem with a customer, the bank reports the information to ChexSystems.
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Purpose
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ChexSystems is used by banks to protect themselves against people with derogatory banking history. This system tracks derogatory banking patterns of people. If a person's banking history contains derogatory information, it appears on ChexSystems, and the person may not be able to open a bank account until certain activities are cleared up.
Information
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This system contains information including people who overdraft their accounts often. It also shows if an account was closed with a negative balance. The derogatory information stays in ChexSystems for up to five years.
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Details
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ChexSystems only contains names and information associated with derogatory banking information. If a person's name is not in this system, the person typically opens a new account with no problems. If a person's name is in this system, the bank may or may not approve a new account.
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