What is Chex Systems?

Chex Systems is a nationwide consumer reporting agency used by financial institutions to assess the risk of potential account holders. It is not a credit bureau, but rather it focuses specifically on banking history. Chex Systems maintains a database of individuals who have had problems with their checking or savings accounts, such as unpaid overdrafts or fraudulent activity. When consumers apply for a new account, banks may consult this database to determine if there is a history of mismanagement. This helps financial institutions safeguard against potential losses. It is important for consumers to understand their Chex Systems report, as negative listings can impact their ability to open new bank accounts. Consumers have the right to request a free copy of their report for review and dispute any inaccurate or outdated information.