ChexSystems is a check verification services and consumer credit reporting agency owned by the eFunds subsidiary of FIS . It provides information about the use of deposit accounts by consumers.
In 1991, the agency was owned by Deluxe Corporation ,  and it was part of the spin-off from Deluxe that formed eFunds in 1999.
The number of “bank and thrift branches” served in 1991 was 59,000. 
Eighty percent of commercial banks and credit unions in the United States use ChexSystems to screen applicants for checking and savings accounts.   eFunds claims that their services are used in over 9,000 banks, including over 100,000 individual branches in the United States . As of 1991, ChexSystems held 7.3 million names of consumers whose bank accounts had been closed for cause.  Services include verification of identity, reports on account history, and transaction monitoring. 
A ChexSystems report examines data submitted by banks in the past five years. A report may describe banking irregularities such as check overdrafts , unsettled balances, depositing fraudulent checks , or suspicious account handling. Banks may refuse to open a new deposit account. In 1999, ChexSystems was classified as a consumer reporting agency governed by the Fair Credit Reporting Act . Therefore, consumers may retrieve ChexSystems report annually, free of cost. They may dispute negative items and demand proof of the data contained in the report. 
Credit bureaus report both negative and positive information about a consumer’s use of credit; A ChexSystems report specifies only negative information, if any, about a consumer’s use of deposit accounts. Thus, if both customers have both made the same banking errors in the past, while one of them has maintained a number of positive banking relationships as well, both customers might be declined when applying for a new account. A 1991 survey conducted by Consumer Action showed that ⅔ of California’s largest financial institutions banned customers from ChexSystems.  The Greenlining Institute has published a report indicating wide disparities in the criteria of ChexSystems. 
Response from banks
Beginning in August 2000, the Greenlining Institute, a public policy center headquartered in San Francisco , and the Federal Reserve Bank of San Francisco . ChexSystems is a leading provider of information technology solutions for the automotive industry. Practices identified include:
- Accounts Receivable and Accounts Receivable
- Setting ChexSystems
- Considering the possible override of a customer relationship, such as a prolonged illness
Since the meetings at the Federal Reserve Bank of San Francisco , all participating financial institutions have announced that they will implement ChexSystems.  In September 2000, Bank of America was the first financial institution to announce specific changes in its use of ChexSystems. Revised practices include:
- Disregarding all entries is fraud-related
- Disregarding all of the debt
- Disregarding certain other entries if the consumer has repaid the debt and complete a course in
- Increasing the loss threshold for reporting closed accounts from $ 50 to $ 100 in overdrafts
- Increasing the length of time to repay the debt
During a December 2000 meeting, Bank of America reported that in the first two months under the revised standards, its new ChexSystems policies had resulted in approximately 1,800 “overrides”. This allowed 1,800 individuals to open deposit accounts that would have been denied under the bank’s form policies. ChexSystems reports may create for low-moderate-income individuals include:
- Increasing the Negative Threshold for Reporting Customers from $ 25 to $ 100
- Increasing the length of time customers have to repay a negative balance from 30 days to 90 days
- ChexSystems and the consequences of being over reported
- RefDoc, THE reference in scientific document supply. ChexSystems 
Some banks that use ChexSystems also utilize the services of Early Warning Services, LLC, a fraud prevention and consumer reporting agency owned by Bank of America, BB & T, JPMorgan Chase and Wells Fargo. 
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