How to Use ChexSystems
ChexSystems is a consumer-reporting agency operating under the Fair Credit Reporting Act. Bank employees call ChexSystems when opening an account for a customer. A customer who has abused accounts by not paying bank fees, triggering an excessive number of fees, writing an excessive number of insufficient-funds checks or committing fraud could be reported to ChexSystems. Customers reported to ChexSystems might find it difficult to open a bank account. Banks have differing policies regarding customers flagged by ChexSystems.
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Instructions
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Complete an application when a prospective customer enters the bank. Get the customer's name, address, Social Security number and date of birth. Make sure you get all addresses for the customer covering the past five years--this information will be needed by ChexSystems. The more information you can provide ChexSystems, the more accurate will be a search of the system's database.
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Call ChexSystems and provide the representative with the customer's personal information. The representative will let you know if the customer is listed in the ChexSystems database or has a record of banking abuse. If the customer is listed in the database, the representative will give you details of funds the customer might owe to other banks.
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Instruct the customer to contact ChexSystems if his name turns up in the database search. Tell the customer to resolve issues with ChexSystems before opening an account.
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Wait for the customer to return to the bank with proof that he has resolved issues with ChexSystems. A canceled check or written documentation from ChexSystems will suffice.
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Tips & Warnings
Sometimes there is no need for a bank employee to call ChexSystems after the customer's information is keyed into the bank's system. Some bank's systems access ChexSystems automatically, and a page will print out for the bank representative indicating whether the customer has been flagged by ChexSystems.
