U.S. banks and credit unions report "mis-handled
accounts" to ChexSystems to protect themselves
and other banks in the future.
Some of these incidents include:
To learn if you have any incidents reported, you
and order a copy of your report. To see what
type of information is in your report, see the
Account closed "for cause".
Banks differ greatly between them as to what
valid reasons are for closing an account.
Bank was unable to collect for an overdraft,
ATM transaction, or automatic payment that
they honored on insufficient funds.
Banks report this to ChexSystems regardless
of amount and often without waiting more
than a few days after mailing a notice!
- Savings Account, debit card or ATM abuse.
- Providing false information in opening account.
Each incident stays on your record with
ChexSystems for FIVE full years from the
date the incident was reported.
Getting an incident reported to ChexSystems is the
Kiss Of Death for your financial future.
Most banks now say:
"Our bank policy is that we will not
open a checking account for you if you
have one or more incidents reported to
ChexSystems sales staff strongly encourages banks to
"not open accounts for anyone with a negative in
their ChexSystems record",
and also requests that banks "not delete incidents
from the ChexSystems records, even if the incident
is resolved amicably." Of course, ChexSystems denies
that this is their position, but we've received
several tips from bankers and former ChexSystems
staff who say this does occur.
ChexSystems performs collections for banks.
A service within ChexSystems called ChexSystems Collections
serves banks and attempts to collect their losses on
their demand deposit accounts (i.e., checking and
The company that owns ChexSystems,
Deluxe Corporation, also owns
(AKA Checks Unlimited),
(a.k.a. Shared Check Authorization Network), the
which tracks your check-writing history,
and Deluxe Direct Marketing Services.
For additional information about ChexSystems, see
CardReport.com page for ChexSystems.
Did you know?
Every time you order blank checks from Deluxe
or one of their subsidiaries, information
about you is sent to ChexSystems and their
collections agency and direct marketing
relationships. This information includes
private, personal information such as your bank
account number, current addres, and more.
This occurs only when you order checks from Deluxe,
Current Checks, Checks Unlimited, or Designer checks.
They transmit this information to their sister
If it isn't obvious to you why this is a big
deal, then please read
this article about Deluxe or
this article about invasive banking.
Along the same lines, did you know that information
that you provide to a bank in your bank account
application also is given to
Also, if you are curious as to what the
people on the inside at ChexSystems are
like then please read this
message we received.