How to Utilize ChexSystems
ChexSystems is used by banks, credit unions and other financial institutions to safeguard their assets and sniff out fraudulent activities by consumers. There are a number of steps a bank representative needs to take to determine if someone is in the ChexSystems database. The majority of banks will report you to ChexSystems, which is a database of consumers who may have engaged in practices contrary to the rules and regulations of their financial institution. If you have unpaid insufficient-funds or returned-check fees, you could be reported to ChexSystems.
Other People Are Reading
Instructions
-
-
1
Get all of a consumer's information such as name, Social Security number, date of birth, and all addresses within the past five years, including any other state. This information is recorded on a bank application.
-
2
Call the ChexSystems toll free number, 800-328-5120, and give the representative the security code, which is assigned to each financial institution.
-
-
3
Give the ChexSystems representative all of the information listed in step one.
-
4
Listen for the verbal report from the representative. If the representative says they have no record, this means the customer is not in the ChexSystems database. If the customer is in the ChexSystems database, the representative will give the bank employee the name of the financial institution that placed them in the system and the amount of money owed.
-
5
Give the customer the consumer toll free number, 800-428-9623, so that they can call and resolve the issue. A voice recording will provide the consumer with all of the information needed. Consumers can also send a written inquiry to ChexSystems, Attn: Consumer Relations, 7805 Hudson Road, Suite 100 Woodbury, MN 55125.
-
1
Tips & Warnings
Once you are listed in the ChexSystems database, you will remain in the system for five years. Some banks will allow you to pay off the amount owed, then open a bank account even if the five-year period has not expired, while others require you to wait until the five-year period has expired before you can open a bank account. Not all financial institutions subscribe to ChexSystems.
Always verify your checking account balance, and if you incur fees that put your account into an overdrawn status, make a deposit as soon as possible. Banks will report you to ChexSystems for different amounts of money owed. The time period for reporting someone to ChexSystems can vary from bank to bank.
