ChexSystems Reports and Information
ChexSystems, Inc. is a Consumer Reporting Agency that maintains a database of mishandled checking and savings accounts. This information is shared among a network of member banks, credit unions, and financial institutions to assess the level of risk of opening new accounts. ChexSystems does not approve nor decline new account openings, instead, it only acts as a flatform under which the subscribing member bases their decision.
They are also licensed to do business as ChexSystems Collection Agency providing debt collection services to participant merchants. ChexSystems, Inc and ChexSystems Collection Agency are owned by eFunds. eFunds Corporation is the nation's leader in electronic payments and risk management. eFunds is also the parent company of Connex, SCAN, and NCPS. They acquired National Check Protection Services (NCPS) back in May 2005. Today, ChexSystems dominates the consumer banking industry as the primary check verifications and risk management company. Other smaller banks use companies such as TeleCheck and Colorado Cheque Connection (CCC). The rest either use credit reports or develop their own proprietary risk assessment system.
You may be reported to ChexSystems if you have:
- a history of account mishandling or abuse
- an outstanding debt
- been involved in fraudulent activities
ChexSystems Contact Info:
Attn: Consumer Relations
7805 Hudson Road, Suite 100
Woodbury, MN 55125
Phone: (800) 428-9623
Fax: (602) 659-2197
Click Here to order a free copy of your ChexSystems report by mail or fax.
Click Here to order a free report online.
What's the difference between ChexSystems and the credit bureaus?
ChexSystems is a Consumer Reporting Agency that maintains information on mishandled or abused bank accounts. There is no such thing as a positive ChexSystems report. ChexSystems reports are meant for one thing: to warn banks of potential risk.
Credit Bureaus are Credit Reporting Agencies that maintain information on individual credit profiles. Creditors such as credit card providers, department stores, and loan companies submit financial information about you, and the credit bureaus compile all the data to create what is known as the credit report. Unlike a ChexSystems report, a credit report holds both positive and negative information about an individual.
Can you get your name removed from ChexSystems?
Yes, you can have your name removed from the ChexSystems database. However, it may be difficult to do because the only outside entity that can have your name removed from their systems is the bank that reported you in the first place. You can speak to the bank's branch manager, and try to persuade them into removing your name. In most cases, they will not help you if your account has a history of abuse or fraud. This is the bank's answer to keeping "bad check-writers" or "account abusers" from obtaining a bank account elsewhere.
ChexSystems is under no obligation to remove your name if the information they hold about you is correct and verifiable. They will, however, clear your name under the condition that the reporting bank requests for its removal.
If your name was reported in error or reported due to a situation beyond your control, we advise you to speak to the branch manager of the bank that reported you. It simply is illegal for ChexSystems to hold any inaccurate information about you.
If you paid off the amount that you owed the bank, will ChexSystems remove your name from their database?
No, they will not remove your name simply because you paid off all debts owed. Your information will remain on ChexSystems, much like the information on a credit report. The reporting bank may, however, add a statement to your ChexSystems report showing that all debts have been paid.
How long will my name be listed in the ChexSystems database?
Five (5) years.