Chex Systems, Inc. is a consumer-reporting agency governed by the Fair Credit Reporting Act (FCRA) and other laws. The Federal Trade Commission enforces the FCRA.
When you apply for a checking account at a financial institution, there's a good chance that your name will be run through ChexSystems to see whether you are a check bouncer (writing checks on your account when there is not enough money in it to cover the amount of those checks) or have cheated the financial institution in some way.
Eighty percent of U.S. banks and credit unions belong to the ChexSystems network. Similar to credit bureaus, ChexSystems provides information to financial instutions on individuals who mishandle checking and savings accounts. If you wind up in the ChexSystems' database, you could find it difficult to open a checking account for quite some time. A negative report in their database remains there for five years.
Will bouncing a check or two get you reported to ChexSystems? Probably not. But if your account is closed because it's overdrawn, you're likely to be reported. If you believe you've been reported to ChexSystems in error, contact them directly to dispute the entry.