Many have objected to its reporting practices, stating that the system does not report fairly, and unlike credit bureaus, which have both positive and negative information on your credit report. People complain that chexsystems only contains negative information. They claim that this in turn jeopardizes your reputation as a consumer, when those consumers would otherwise be qualified to open checking accounts. I could not agree more!

Once you are in chexsystems, you have several options. You can dispute with chexsystems and the bank that reported you to chexsystems. This is not a guarantee for removal. Everyone has the right to dispute with chexsystems the same as they can any of their credit reports.

Some decide to wait out the 5 years and just let their name drop off after the time has elapsed. This however does not mean that you have to wait 5 years to get a checking account as many banks would want you to believe.

While most banks do use chexsystems, many banks and credit unions do not. Some banks and credit unions use Telecheck instead. Some use neither, and use a credit report as verification when a customer wants to open an account.

I believe that the gripe most people, including myself, have with Chex System is that it works too well. I was in Chex System for exactly the reason they report ISF activity on two bank accounts. I served my five years of not being able to get a mainstream bank account.

Actually, I think that if the credit bureaus system worked as well as Chex System there would be a lot more people that were really careful with credit. You can bet I'll be more careful closing bank accounts.

being in Chex never stopped me from getting a checking account. There are many CUs and Banks where I live that dont use them

Canes, just read your sig about the cancer, hope you're on the mend!




Chex, is there a list of which banks use them?

My experience began with NCPS which was later acquired by eFunds, the parent company of Chex.

I had a checking account with Fleet Bank (later became BOA) which was one of their higher-tier accounts, and after my company failed I fell below the balance thresholds to waive the $25 monthly fee. After about a year of paying the $25/month fee on an account where at the end I was only moving about $100/month in and out, I called them to close the account since I knew I was going to be filing BK and had no need for such a high cost account.

When I called them, they said that they would waive the $25/month fee for a year since I had been such a good customer for many years, and that I could just let the account lie dormant with a zero balance rather than close it.

So, I left exactly $11.31 in the account to cover one last automated debit that was scheduled. Well as you might expect, whomever I spoke with didn't process the waiver of the monthly fee properly so next thing you know I was -$13.69 in the hole and then the automated debit hits and the overdraft fees start piling up and next thing you know they want over $100 from me. I called and called and called and nobody was able to resolve it so I told them they could just go pound sand as I was going to be filing BK and they wouldn't get a penny out of me.

No big deal I thought, I didn't really need a bank account and I would just wait until my BK was all over with.

Well, once the BK was over I went to open a new checking account, and the first time I tried I was declined for a negative NCPS report, and of course nobody would tell me what was in it. So, I did some research on NCPS and got hold of them to request a copy of my report (at the time NCPS was just being acquired by eFunds/Chex). Came to find out that most banks in New England were using NCPS for new account screening, etc. When I got the report, sure enough, there was the $101.69 Fleet/BOA said I owed them. I went to visit the local branch and spoke to the branch manager who told me I had to pay the $101.69 in order for them to remove the item from my report. I carefully explained to her that by simply asking me to pay that amount she was in violation of the permanent injunction established by my BK discharge, and she agreed to have the item removed. She faxed something over to them and said I should be okay to open a new account at another bank within a few days.

I waited a few weeks and called NCPS again to order another copy of my report to verify that the entry was removed. I got it and was relieved to find that the report was clean.

Stupid me was in no rush to open a bank account at that time since everything I was doing was either in cash or via a prepaid debit card. So, about 6 months later, I went into a local bank to open an account and got another "sorry, you've been declined due to a negative Chexsystems report." I'm like, who? Again, had to do the research and find out who they were, and get a copy of my report. Once again, there's the entry from BOA saying I owe them $145.69 for an overdraft. The problem this time was my old branch was closed and the manager gone, and I had no way to prove that she had authorized the item to be removed. I went round-and-round for over a year trying to dispute the item off and got nowhere. Finally it took a letter from my attorney to both BOA and Chex threatening to sue them for violating my BK discharge to get the item removed.

Since then, I've gotten two copies of my Chex report and they are clean except for having my name, address, DOB, and SSN. With Mary's help on the old forum I opened up an account at a local CU that doesn't use Chex, as I really have no interest in doing business with banks that support their inaccurate system.

I fully understand and respect the need for banks to protect themselves from serial check-bouncers, fraud, etc., but just like the conventional credit bureaus Chex seems to have no interest in maintaining accurate records or properly investigating disputed items.

hey eiui.. im doing good right now..

mca has a decent list on her website of non chex banks

The problem that I have with them is that their customers can get a copy of my report within seconds, but I have to wait a week to get a copy mailed to me. That to me is unfair.

-Mike

Now with that one Combat Medic you may have a point. Maybe, Chex will take heed and set up a web report for consumers.