What is ChexSystems?

ChexSystems is a consumer reporting agency that collects and reports information about closed checking and savings accounts, particularly those closed due to unpaid negative balances or suspected fraud. Banks and credit unions use ChexSystems reports to assess the risk of opening new accounts for individuals. If you've had issues such as bounced checks or overdrafts that weren't repaid, they may appear on your ChexSystems report and impact your ability to open new bank accounts. Negative information typically stays on your report for five years, but you have rights to dispute incorrect information. Understanding and managing your ChexSystems record can help you maintain better access to banking services.