ChexSystems Removal (How To Actually Get Removed) In 2020

Have you been denied the ability to open a bank account because the credit union or bank tells you that you are in ChexSystems? Maybe you have received this news a few times, and now you’re wondering, “How do I get my name out of ChexSystems?” There are a few ways for removal or by improving your score with ChexSystems. To help you with this, you need to understand how ChexSystems works.

ChexSystems is a nationwide consumer reporting agency under the Fair Credit Reporting Act. They receive information from financial institutions regarding closed checking and savings accounts. This information can include overdrafts, unpaid account balances, bounced checks, and more. Depending on the extent of what is reported, this creates a score. Credit unions and banks use ChexSystems scores to assess the risk they want to take when you open an account.

Why you’re in ChexSystems and How to View your Report

Making mistakes with your money is a way of life; sometimes, mistakes happen during an emergency or as simple as not managing or keeping track of your finances. When you make errors with a bank account, the bank reports the mistakes to ChexSystems and ends up on a consumer report. You have the right to review the information on your report and receive a free copy every 12 months.

A Few Mistakes that Could Be the Reason for Why You Are in ChexSystems:

  • You closed an account and forgot to transfer automatic payments to your new bank account. You may be subject to fees on your closed account due to this.
  • Instead of formally closing your bank account, you left it open, assuming it will automatically close later. Fees could develop on this account if there are requirements of minimum balances or monthly bank fees causing overdrafts. Also, if you are not monitoring this account, it could lead to unexpected fraud.
  • You didn’t wait for a deposited check to clear your account before spending it, causing overdraft fees.
  • You forgot that you wrote a check or wrote one over your current account balance, the check was cashed and caused additional fees on your account.
  • You were a co-signer on an account or gave your PIN to someone who wasn’t financially responsible, causing fees and overdrafts.
  • There were overdrafts and fees because you didn’t monitor or keep track of your account for overspending, fraud, or financial institution errors.
  • You didn’t bring your account balances out of the negative.

How to View Your ChexSystems Consumer Disclosure Report

If you are unsure about what could be listed on your ChexSystems report, you can request a free copy every 12 months to view what is listed on your record. Your free copy will help you determine if there are balances that are unpaid at other banks and if any information is inaccurate that you want to dispute. There are a few ways to do it.

  1. Request your report via the ChexSystems website online
  2. Call customer service at (800) 428-9623
  3. Mail the “Consumer Request for Disclosure Form” to ChexSystems, Inc. Attn: Consumer Relations 7805 Hudson Road, Suite 100 Woodbury MN 55125
  4. Lastly, fax the “Consumer Request for Disclosure Form” to (602) 659-2197

How to Get Removed From ChexSystems

There are a few different ways on how to get out of ChexSystems. If you determine that your ChexSystems report is inaccurate, you can file a dispute. You may also be a victim of identity theft, causing your banking record and other aspects of your financial life to be turned upside down. You can also be removed from ChexSystems by paying back old negative account balances and displaying positive banking history over a period of time. We also recommend you educate yourself on Early Warning Services in order to prevent being denied a checking account from reputable banks.

Dispute Accuracy of Information on File at ChexSystems

If you were denied a bank account and were surprised because you don’t have a record of poor banking history, then you have a right to dispute the claims made on your consumer file at the ChexSystems reporting agency. You can contact the source, a credit union or bank, to resolve the request or ChexSystems can submit a dispute on your behalf. To send a dispute through ChexSystems, you can take the following steps:

  1. The most convenient and timely way to dispute your consumer report credit reporting is to do so online. Make sure to read through the terms and conditions to ensure you understand what is required.
  2. Obtain a copy of your Consumer Disclosure ChexSystems Report, which is not a requirement but helpful when identifying what you are disputing. You can request a free copy.
  3. Verify that you are not a minor, and if you are submitting on behalf of a minor, make sure to follow the additional steps to verify identity.
  4. The ChexSystems Credit Reporting Consumer ID to fill in is located on your Consumer Disclosure Report, and following that, you will need to include your personal information such as; name, address, social security number, and more.
  5. List out the dispute details and attach additional supporting documentation to help you make your case.
  6. After you submit, a full investigation could take up to 30 days to complete. With additional documentation, this may add an additional 15 calendar days.
  7. If you are unable to complete your dispute online, you can do so by certified mail or fax. You will want to include the “Request for Investigation Form” and make sure to include full name, social security number, current mailing address, ChexSystems Consumer ID if available, and all dispute information and details.

Mailing and Faxing Information:

  • Mail to: ChexSystems, Inc. Attn: Consumer Relations 7805 Hudson Road, Suite 100 Woodbury MN 55125
  • Fax to: (602) 659-2197

Following Up on ChexSystems Report Disputes

The Fair Credit Reporting Act states that consumer reporting agencies must investigate disputes within 30 days. If your ChexSystems report dispute comes back within the allotted time without clear information as to why it was denied, then it is your right to request a complete copy of your information via certified mail from your bank and ChexSystems.

If within the 30 days, you don’t hear back from ChexSystems regarding your dispute with your bank, then they are in violation of the Fair Credit Reporting Act. You will need to send both of them certified letters explaining their violation and request proof of a negative mark on the report. You may also like our post on how Bank of America uses ChexSystems here.

If you do not receive proof of claims from your bank on your ChexSystems report copy, you can get a judge involved and take your bank to small claims court. You can clear your report due if they find that they are in violation of the Fair Credit Reporting Act.

Reporting Identity Theft

Identity theft is a significant issue affecting our society today. Maybe you just discovered that your personal information had been stolen because you were denied an account. After reviewing your ChexSystems report, you can see that all of the information is not your fault. According to the ChexSystems website, here is what to do if your identity has been stolen:

  • If you have identity theft protection, contact them immediately.
  • Contact the fraud departments at all three major credit bureaus.
  • Place a security alert on your ChexSystems file.
  • Contact all of the financial institutions where you currently bank or that are listed on your ChexSystems report.
  • Close all accounts you didn’t open and stop payment on outstanding checks.
  • File a police report and ask for a copy
  • Contact the Federal Trade Commission to file.
  • Contact the U.S. post office and the Social Security Administration.
  • Ask your current bank account and credit card companies to freeze your accounts. In some cases, you may need to open new accounts and receive new cards.

Ways to Protect Identity

It is essential to put steps into place to avoid becoming a victim of identity theft. Here are a few ways to do that:

  • Keep your checks in a safe place
  • Don’t put bills in your personal mailbox, take them to a post office box
  • Keep bank account numbers, PIN numbers, and social security cards out of your wallet and in a safe place
  • Properly dispose of personal and financial information by shredding or burning the information
  • Don’t give out personal information over the phone or email if you didn’t prompt the request
  • Monitor your financial accounts to catch fraudulent transactions immediately
  • Act immediately by closing or freezing accounts if you lose your wallet or checkbook
  • Look into identity theft protection to help you monitor your credit and personal information. And if you were to become a victim, they will help you clean up the mess.

ChexSystems Removal with Poor Banking History

At this point, you have learned how to get off ChexSystems and work towards improving your poor banking history by creating new money habits to avoid mistakes that report you to ChexSystems. Even if you are in a better financial state, credit unions and banks still look at your ChexSystems record to review your past mistakes and assess risk. Here is how ChexSystems looks at your record:

  • ChexSystems practice is to retain a mishandled closed account record for 5 years unless requested otherwise from other financial institutions.
  • Even with old account balances paid, the credit union or bank may still decide to keep your record open on ChexSystems as they are under no obligation to remove it. But financial institutions are obligated to update your report as paid in full.
  • If you are submitting a dispute and the investigation did not resolve it, you can request to provide a statement for your file. The statement has to meet requirements such as not including names of individuals or businesses, no profanity, has to pertain to your consumer file, and more. You can submit this statement by either certified mail or fax using the “Request for Consumer Statement Form,” and if you need assistance, ChexSystems will help you.

Mailing and Faxing Information:

  • Mail to: ChexSystems, Inc. Attn: Consumer Relations 7805 Hudson Road, Suite 100 Woodbury MN 55125
  • Fax to: (602) 659-2197

How Long Does it Take to Get Out of ChexSystems?

It is essential to pay off old debts or negative account balances with your bank to show responsibility when it comes to your ChexSystems report. If you have unpaid debts with credit unions or banks, then your ChexSystems report will continue to remain open. If you don’t have enough money to pay off old debt, ask the bank if they will settle for a smaller amount to close your account. If they agree, make sure to get this in writing to avoid a hassle down the road. You will also want to ask the source if they will report to ChexSystems that you paid in full and if they will request to remove it from your report. If you are interested in finding a second chance checking account near you, then visit here.

How Long Does it Take For You Get Out of Check Systems after Paying Off a Debt to the Bank?

Once your balance is paid, if your bank doesn’t remove the information from your ChexSystems report for ChexSystem removal, they will keep it on record for 5 years. If your ChexSystem record is affecting your ability to open a bank account, look for second chance accounts that won’t use your Chex System score. There are even some banks that will give you account as long as your ChexSystems report shows that you have no unpaid debts and no fraud caused by you. You may also find helpful on how to open ChexSystem disputes.

Avoid Building Back your Checks Systems Report

After you clear up old debts on your report to help with qualifying for a checking account and wait out 5 years after your bank has made the report, the last you want to do is add a blemish to your ChexSystems record. Having a poor banking record affects your ability to open a checking account. When you don’t have an account, it makes it difficult and costly to manage your daily financial transactions. Here are some simple ways to help you avoid building back your ChexSystems report:

  • Write down your approximate monthly income and your monthly bills and expenses. Knowing these numbers will help you determine how much extra money you have to spend each month to avoid overdrafts.
  • Put money aside, even if it is only a few dollars a month to save in case of emergencies. Having money set aside will help you cover unexpected expenses and avoid negative account balances.
  • Avoid writing checks to pay bills and people so that if they take a long time to cash it, you won’t forget to have enough funds in your account to cover it.
  • If your living paycheck to paycheck, look for alternatives to build your income. Ideas include; starting a side business, asking for a raise, looking for a higher paying job, and cutting unnecessary expenses.
  • Look for bank accounts that don’t charge monthly fees, don’t require minimum balances, and offer overdraft protection.

To summarize ChexSystems removal, know that if your record is inaccurate, you can have it disputed and have ChexSystems removed. And if your record includes identity theft, act immediately to restore it and clear your history. If you clear up your history by paying past bank debts, then these can also be removed generally after 5 years. If it takes 5 years, then you can apply for a second chance account in the meantime. If you liked this post, then check out our post the Chexsystem customer service guide here and 5 facts about Chexsystems you probably didn’t’ know.

Related Posts: