ChexSystems is far from infallible – in fact, thousands of people have found inaccuracies in reporting on ChexSystems and try unsuccessfully for years to get a checking account due to records coming back in their name. ChexSystems is allowed to keep reporting on you for 7 years, and that’s a long time to keep having to fight the same battle.
One of the main problems with ChexSystems is that it only stores negative information – and that information is routinely used as the reason people are denied bank accounts at banks and credit unions across the country. Since 80% of financial institutions both report to ChexSystems and retrieve records from the database, there’s plenty of room for error.
False Information on ChexSystems
For example, one consumer reported that a fraudulent eTrade account had been opened using his information. eTrade reported his information even though they knew it wasn’t he who had opened the account. This led to years of trying to get the false information removed.
Another consumer discovered her social security number was in ChexSystems associated with a bank account from a bank she had never had affiliation with. A typo had been responsible, but even though the name didn’t match, it took her years to resolve the issue since her SSN was now compromised.
In some cases, consumers have even reported that their information was given to ChexSystems by someone who wanted to hurt them financially, and who worked in the banking industry.
Since ChexSystems is under no obligation to verify the information they receive is true, many people languish in the database unable to get a bank account or even having their existing bank account closed during a review!
Obviously, just like creditors report inaccurate information to credit bureaus, financial institutions can report inaccurate information to ChexSystems, or ChexSystems may simply have the wrong data attached to your name for some reason.
Removing Information from ChexSystems
Even if you think you have a clean bank record, you should request your free ChexSystems report once every twelve months. If you find errors, it’s time to use CFS to help dispute false information and clear your record. Otherwise you could be battling that record for up to 7 years! (You should also monitor TeleCheck to ensure your check-writing privileges are unaffected.)
9,000 different banking institutions at over 100,000 different branches all contribute to the ChexSystems database. There are almost 350,000 reports sent per day! That’s a lot of reports, and it stands to reason that mistakes are made. If you think you may have been adversely affected by ChexSystems receiving erroneous reports, you should take steps as soon as possible to have them disputed, and your name removed from ChexSystems.
You Deserve Accurate Bank History Reporting
Checking and savings accounts are indeed abused by many people, but that doesn’t mean you deserve to have your right to bank and make money transactions freely. You are not at fault for banks that have harsh reactions to the slightest error and are quick to file reports.
CFS has developed a safe, efficient, legal, and thorough way to improve your chances of successfully disputing inaccurately reported ChexSystems information. We’ll file legal documents, and fight on your behalf to have your record and your name cleared.