ChexSystems, Inc. provides a free annual report to consumers, so consumers can check if they are in the ChexSystems database, as of 2015. A consumer may also get a free report from ChexSystems if the he was denied an account by a bank or credit union based on information provided to the institution by ChexSystems.
ChexSystems is a conglomeration of banks, credit unions and other financial institutions designed to share information about consumers seeking financial and credit services. ChexSystems acts as a clearinghouse for information provided to it by the financial institution members of the network.
When a consumer seeks to open a bank account or credit union account, the institution sends a query ChexSystems to determine if any information about the consumer is available if the financial institution is a member of the ChexSystems network. Whatever information ChexSystems has about the consumer is provided to the financial institution; the institution then makes a decision regarding whether or not to open the account for the consumer.
ChexSystems does not make decisions about whether the consumer is able to open an account; it only provides information to the financial institution. The financial institution makes its own decision regarding doing business with the consumer.