Types

• Some check-related reporting agencies, such as ChexSystems, exist primarily to advise banks of potential financial risks. Others, such as TeleCheck, also work to advise merchants about people with outstanding bad checks.
  
  

Effects

• If you're listed in ChexSystems, you may encounter problems opening a bank account. People listed in databases such as TeleCheck won't be able to write checks at most stores or open bank accounts at member banks until the bad check debt is cleared.
  
  

Time Frame

• ChexSystems records information for five years, even if you pay the bad check debt. TeleCheck removes the report from its databases once the check or overdrawn bank account is fully paid.
  
  

Warning

• Writing bad checks can lead to criminal prosecution, especially for people who habitually bounce checks.
  
  

Widespread Use

• More than 80 percent of banks in the United States use ChexSystems when deciding whether to allow a new customer to open a savings or checking account, according to Bankrate.com.