ChexSystems (SM), previously registered to "Chex Systems, Inc", is a deposit account verification service provider and a consumer credit reporting agency. It provides information regarding account mishandling to its members (financial institutions) when someone applies for a new account.
If any of your account was previously closed by a bank for check overdrafts, unsatisfied balances, depositing fraudulent checks or suspicious account handling, ChexSystems will store and will send the information to the members. The report stays there at ChexSystems for five years.
Chexsystems verifies your checking activity and functions as a consumer credit reporting agency. Most banks and credit unions use it when opening a new deposit account. Because Chexsystems is a CRA, it is your right to dispute with chexsystems.
Just as you can ask for one free credit report every year, you can also ask for a Free chexsystems report once a year. As a consumer, you can question any information in Chexsystems, and you can also dispute entries and the evidence that supports the reported activity.
Is Chexsystems a fair system? Many have objected to its reporting practices, stating that the system does not report fairly, and unlike credit bureaus, which have both positive and negative information on your credit report. Many say that chexsystems only contains negative information. They claim that this in turn jeopardizes your reputation as a consumer, when those consumers would otherwise be qualified to open checking accounts.
Another growing problem I am seeing is Early Warning Services (EWS). More and more people are being denied accounts because of EWS. Banks that never used and still do not use Chexsystems are now using EWS. Almost anyone that has been reported to Chexsystems is also reported to EWS.
For a FREE copy of your chexsystems report go to www.chexhelp.com
By signing up a debt counseling session, your provided details (Name, Email ID and Phone No.) will be forwarded to the company advertising on the DebtCC. However, you have no obligation to use their services.
Some creditors and collection agencies refuse to lower the payoff amount, interest rate, and fees owed by the consumer.
Creditors/collection agencies can make collection calls and file lawsuits against the consumers represented by the debt relief companies.
Debt relief services may have a negative impact on the consumer's creditworthiness and his overall debt amount may increase due to the accumulation of extra fees.
The amount which the consumer saves with the use of debt relief services can be regarded as taxable income.