The feeling of being on a list for something you’ve done is bad, particularly if that list has the potential to affect all your other activities. Being listed on Chexsystems can inspire feelings of panic. After all, the consumer report that can be obtained from the service could put you in a bad position when you want to open a checking account with a bank. Chexsystems is a serious list you can be on. The main issue here is that you might be spending the next five years without a bank account if your name is on that list.

“Am I on Chexsystems?”

If you’re not sure whether you have been listed on Chexsystem or not, the best way to know is to try applying for a new checking account. If you pass your application successfully, you may be rest assured that you’re not on Chexsystems. If there are problems with your application and your bank refuses to grant your request, you may have been listed without your knowing by some of the other banking institutions you’ve transacted with in the past.

What is Chex Systems?

Chexsystems is an information database meant to provide risk-assessment help to banks and other financial institutions. There are so many reasons why people get listed on Chexsystems. They may have committed bank fraud and credit fraud. Even simple things like overdrafting your checking account several times and refusal to pay the fees could put you on the list.

That most banks use this system to evaluate new checking account applications is bad news if you plan on opening a new checking account. Most banks look for your Chexsystem report before they consider you a good customer.

A company called eFunds founded the Chexsystems service. The main idea behind the service is to help banks avoid doing business with customers from other banks that have tried to game the banking system. Your name will be listed there for five years unless you dispute.

But Chexsystems is hardly perfect. You may have been listed there because of a glitch in your account, and not because of your intentional actions to commit fraud. It’s difficult to get removed from the list if you really have some skeletons in your closet as far as the banking system is concerned. But if you’re convinced that there must be some mistake, you can request a re-investigation of your account.

You can’t just write a letter of protest to Chexsystems. You have to do a certain amount of research to make sure you’re in the right when you air your dispute. Unless you are the victim of identity theft, protesting without solid proof backing you up will get you nowhere.

There is another option for you; you can find a non-Chexsystems bank. Some banks don’t use Chexsystems and so you need to find out which banks these are. A handful of banks also offer second chance checking accounts, which you can apply for. If you don’t want to waste time appealing to Chexsystems to get your name off the list, you can simply go for this option.