ChexSystems can cause immeasurable havoc on everyday life, causing you to be turned down for a checking account over and over again without you even being fully aware of the reason why. Many people are unaware that they are in the ChexSystems database until they find themselves denied bank account access, and then must go through the laborious process of finding a bank or credit union that doesn’t use ChexSystems and paying extra fees for a second chance checking account.
The first step to getting off ChexSystems’ database is finding out what information is present in the system. This can be accomplished by obtaining a copy of the report they have been supplying to financial institutions when your name comes up. Once you have the report, you can use CFS to dispute any inaccuracies, potentially restoring your banking privileges and possibly even removing your name from ChexSystems completely.
What Kind of Information does ChexSystems Have?
In most cases, the kind of negative reporting sent to ChexSystems by banks and credit unions falls into one or more of the following categories:
- Multiple, unsettled overdrafts
- Unpaid overdraft fees for check writing, ATM transactions or Electronic Payments
- Saving or checking account abuse (bounced checks and unpaid NSF fees)
- Debit card or ATM abuse (deliberately over-drafting your account)
- Fraud (can include many different kinds of activities)
Of course, if you have committed fraud, you’re probably on more than just the ChexSystems database. However, for many other infractions, reporting by banks can be unnecessarily harsh and you may not be notified there is a problem until you apply for a new account.
Obtaining a ChexSystems Report
Since ChexSystems is a consumer reporting agency similar to Experian, or Equifax (although it tracks bank activity instead of credit card or loan activity), you are entitled to a free copy of their report once every 12 months. You have the right to see what information exists about your banking habits free of charge.
You can obtain your free ChexSystems report in any of the following ways:
- Order it online using ChexSystems Consumer Assistance
- Request it by mail at ChexSystems, Attn: Consumer Relations, 7805 Hudson Road, Suite 100, Woodbury, MN, 55125
- Order it by phone at (800)513-7125. (When ordering by phone you may be asked to provide basic identifying information: name, address, SSN, and date of birth)
There is a $9 fee to obtain another ChexSystems report if you’d like access to it more than once every 12 months. You may also qualify for a free report if any of the following apply:
- You have been denied a bank account in the last 60 days
- If you have been denied credit insurance or employment based off your Chexsystems report within the past 60 days
- If you are unemployed and/or intend to apply for unemployment within 60 days
- If you are on public welfare assistance
- If you think your file contains inaccurate information due to fraud or identity theft
Negative information in ChexSystems can remain in your report up to 7 years, which is a long time. Wouldn’t it be smarter to see if you can shorten that time period and regain your banking privileges sooner? CFS can help you dispute inaccuracies in your report and restore check-writing privileges.
If you have been denied bank account access or check writing privileges recently, you may also wish to order a TeleCheck report from TeleCheck Services, Inc. Attention: Consumer Resolutions-FA P.O. Box 4514 Houston, TX 77210-4514. In many cases, if a ChexSystems report exists, a TeleCheck report does, too! Contact: TeleCheck Services, Inc. Attention: Consumer Resolutions-FA, P.O. Box 4514, Houston, TX 77210-4514.