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I'm not sure I know exactly what ChexSystems is (or is it Chex System?). Is it like a credit reporting agency for bounced checks? Will I always get reported if I write a bad check? Any information you can offer will be appreciated.

Editor's Response

Yes, it is a private organization that provides data to banks and other financial institutions to help them estimate the risk of doing business with potential customers.  I do not believe you always get reported to Chex Systems if you right a bad check, especially if you correct the problem quickly.  But customers who write bad checks (or commit other acts that call their integrity or money management skills into question) and do not correct the problem will have those incidents recorded on their Chex Systems report.  Those reported incidents will stay on your report for five years and may make it difficult for you open new accounts at other banks. If you do write a bad check, the best thing to do is to correct the problem as soon as you are notified.
 
To order a copy of your ChexSystems report (if one exists) you can go to the ChexSystem's website at www.consumerdebit.com/consumerinfo/us/en/index.htm.  At that site, you will also find some helpful information about ChexSystems, including FAQs.

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