Just a Case Number
More and more people each year have their salaries paid by check. To convert the check into money you need a bank account. Banking works partly on trust and partly on the self information furnished by you. The bank lets you open an account and keeps your money. Withdraw through a check are made when payments are to be made. Banks helps to make payments on your behalf for say insurance, hire-purchase and your other buying spree through credit card.
Banks are bound my rules, when you sign at the time of opening an account you too agree to the terms. If you for whatever reason spend more than the money you possess in your account; in the banking definition you are a defaulter. As the number of defaulters increased the bank felt a need to resolve the issue through a policy. Thus Chexsystems and Telecheck were introduced as legitimate banking credit bureaus for a second check checking account.
These credit bureaus maintain history of adverse consumer previous banking history. It helps the bank to segregate offenders from genuine customers. The bank transaction operations are suspended for offenders for seven years. A second check checking account listing makes another checking account in insured bank inaccessible. Your life may turn topsy-turvy but in the listing you are just another case number!