Credit Union ChexSystems
Having Difficulty Opening a Checking Account at a Bank or Credit Union? ChexSystems Might Be the Cause.
You're here because you've been turned down for a checking account at a bank or credit union. ChexSystems was probably never mentioned by the account representative who denied you, though it's likely the cause. ChexSystems was established as a safeguard for financial institutions against fraud and/or habitual check bouncing. It's remarkable how something that was built with the intention of being helpful has turned into something unduly harmful.
A Flawed System
The problem is that a system like ChexSystems is only as good as the people who are using it, and the reality is that this list is fallible because people are making the decisions, and people are fallible. The list is an abuse of power. A financial institution doesn't have to have much of a reason to put someone on it. Should a person be denied a checking account because they allowed their account to overdraft once or twice? Should an honest mistake make the next five years of your life a real pain, because you can't write a check. If you're on the ChexSystems "naughty" list, then you will have difficulty finding any bank that will house your money.
The list of banks and credit unions that use ChexSystems, Inc. is ever expanding. More than 80% of financial institutions use the list when checking the background of a potential client. More and more banks are coming on board with it all the time. There are websites and other companies that claim to have lists of banking institutions that do not use ChexSystems. Beware of these companies, especially if they require you to pay any cost. It's simply impossible to have a comprehensive list of ChexSystems free banks and credit unions, ChexSystems list is changing all the time.
Information is the Bomb
The best way to combat the ChexSystems list is to be armed with information. Here are some of the facts. You can ask your banking institution if you are on the ChexSystems list, and, if so, why. They might not be obliged to simply state that information of their own free will, but they will tell you when you ask. There is usually a note in the system as to why the person has been added to the list. If the information provided is incorrect or you feel that it is an unjust assessment of your financial responsibility, then you can argue with the bank and prove your case to get off ChexSystems list. The bank does have the power to delete your name from the list at any time. Of, course, that doesn't mean that they will. Bank representatives are under no obligation to remove an accurate report of account mishandling even if an account overdraft has been settled and paid in full. However, they are obligated to update the report with a "paid in full" or "settled in full" if that is the case.
Make some Contact
Apparently, you can contact ChexSystems, Inc. as well. The ChexSystems phone number is 800.428.9623. Their address is Chex Systems, Inc. Attn: Consumer Relations, 7805 Hudson Road, Suite 100, Woodbury, MN 55125. Call or send them a letter and ChexSystems will open an investigation of any item listed in your consumer report that is under dispute. They also offer a class that focuses on the responsible management of a checking account. For a fee, an individual can enroll in this class and receive a reprieve from the ChexSystems list. As absurd as all of this is, it is one of the only ways to receive an early dismissal from the ChexSystems list. The other is to talk to the people who put you on the list in the first place, a representative at your bank or credit union, ChexSystems real boss.
