ChexSystems compiles information about unpaid balances and other negativity activity, such as frequent overdraft and excessive savings withdrawals, on consumer checking and savings accounts, according to U.S. News. The agency may also report ATM abuse, bounced checks, finance-related public records and suspicious activity consistent with fraud. ChexSystems doesn't keep an ongoing record of transactions in accounts that are in good standing.Continue Reading
ChexSystems reports typically show what institutions previously requested information about a consumer, U.S. News explains. Many banking institutions use reports from ChexSystems to approve or reject applications for accounts, but individual banks determine the criteria for weighing different violations. However, banks may not always report violations when the account holder immediately takes corrective action, such as paying an overdraft. Generally, the agency retains account information for five years, but information may be updated or removed at the banking institution's request, according to ChexSystems.
ChexSystems, Inc., is a niche consumer reporting agency that is subject to the rules of the Federal Fair Credit Reporting Act, ChexSystems explains. Similar to credit bureaus, the agency generates its own consumer banking scores, which range from 100 to 899. ChexSystems is only authorized to disclose banking information under specific conditions, such as when the consumer requests a report in writing, initiates a relevant business transaction, or applies for federal licenses or benefits. Other scenarios include child support proceedings, court orders or subpoenas.Learn more about Credit & Lending