ChexSystems, Inc. is a consumer reporting agency that provides deposit account verification services to participating financial institutions. These reports assist financial institutions in identifying potential customers who have a history of improper account handling, such as monies owed, excessive NSF activity, ATM abuse, and suspected or confirmed fraud. Institutions are allowed to develop their own ChexSystems policies, determining which records are acceptable for new customers. Participating ChexSystems institutions also report negative customer information to the agency for use by other institutions. Each report submitted to ChexSystems remains on the consumer’s record for five years. Records are only removed if the institution that filed the report requests to have it removed, or the information is determined to be inaccurate. If a collection amount is reported, the record must be updated to report a paid status once all monies owed have been paid. However, the history of the collection is still retained on record for five years. ChexSystems is governed by the Fair Credit Reporting Act (FCRA), which was designed to promote accuracy and protect the privacy of consumers. The FCRA also requires agencies to provide consumers with a copy of their record, free under certain conditions.

Complete your profile to continue reading and get FREE access to, part of your ALM digital membership.

Your access to unlimited content isn’t changing.
Once you are an ALM digital member, you’ll receive:

  • Critical information including comprehensive product and service provider listings via the Marketplace Directory, CU Careers, resources from industry leaders, webcasts, and breaking news, analysis and more with our informative Newsletters.
  • Exclusive discounts on ALM and CU Times events.
  • Access to other award-winning ALM websites including and

Already have an account?


© 2023 ALM Global, LLC, All Rights Reserved. Request academic re-use from All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.


Credit Union Times

Join Credit Union Times

Don’t miss crucial strategic and tactical information necessary to run your institution and better serve your members. Join Credit Union Times now!

  • Free unlimited access to Credit Union Times' trusted and independent team of experts for extensive industry news, conference coverage, people features, statistical analysis, and regulation and technology updates.
  • Exclusive discounts on ALM and Credit Union Times events.
  • Access to other award-winning ALM websites including and

Already have an account? Sign In Now
Join Credit Union Times

Copyright © 2023 ALM Global, LLC. All Rights Reserved.