It’s a topic most people dread. It is even worse when you know your bank
accounts haven’t had the brightest or cleanest history about them. If that
sounds like your bank accounts, then this article is for you.
You may be wondering
why you were denied by a bank while trying to open a new checking account. ChexSystems is likely the culprit of
your poor reputation. But don’t worry, we will walk you through what
ChexSystems is, what it is for, how you can find your report, and even wipe out
your information from their system!
ChexSystems are reports that hold information
about banking mistakes from the past, such as unpaid fees, undisputed checks
and fraudulent activity. Banks will investigate your checking account through
ChexSystems to determine if they want to accept or deny you based on your
financial past. Bad news is that it could raise many red flags for you when
trying to do anything with your current bank or a new one.
is an agency that creates reports for ay unresolved issues that you may have
encountered in the past with your checking accounts. The reports’ information
includes: any unusual or fraudulent activity or any type of account misuse over
a five-year period.
the National Consumer Law Center, about 80% of banks and credit unions
confirmed that they receive reports and information regarding customers from
ChexSystems. By using this method, it helps banks decide whether they want to
continue working with applicants to open new bank accounts with them. The
agency will collect the consumer history reports and develop risk scores.
is owned by FIS. FIS Global provides banking and payment
technology, processing services and information based services to major banks.
Their goal is to help businesses make the complex, clearer. They are headquartering
in Jacksonville, Florida and employ 52,000 people globally. FIS focuses on
retail and investment banking.
ChexSystems is governed by the Fair Credit Reporting Act that:
promotes the accuracy, fairness, and privacy of information in the files of consumer reporting agencies
What a ChexSystems Report Includes
reports act as bank statements and are meant to paint a picture of your
activity. Unlike credit unions where they focus on only your credit history,
they collect information about your checking account.
You or your bank can request a report or risk
from ChexSystems. These reports will provide with all relevant information.
Anyone can request these reports or scores from the agency. The ChexSystem’s
report, however, will give you a better idea as to why you were rejected by a
Risk Score: Risk scores
are scores that show banks you are not a high risk customer. The higher your
score, the better chance you have at opening accounts without problems.
As all of your activity is scored. The Consumer
report draws up a number, that number is considered your score. Scores
range between 100 to 899.
Report: Also known
as the “Consumer Disclosure,” a term coined by ChexSystems, shows items related
to all of your account history. These Consumer Disclosures will show you items
like unpaid fees from overdrafts, bounced checks, and suspected fraudulent
activity. The report will also contain information such as credit inquiries,
consumer initiated freezes, or if you were a victim of identity theft.
You can learn how to Request your Consumer Disclosure Report easily
through the ChexSystems’ website.
If you are having problems with opening a checking account
it is likely that ChexSystems is to blame. For closed accounts, they call them “for cause,” meaning:
there was incorrect on false information regarding the account, several bounced
checks over a short period of time, lack of payment of insufficient funds,
overdrafts, fraud, any abuse of a checking, savings, or any type of
transaction, or any bank rule violations.
What is ChexSystems Used For?
is a reporting agency used by banks and consumers to provide reports on
checking accounts or other information regarding specific and/or suspicious
can be used for “freezing” your banking reports. You have the option to request a
freeze on your report. This will stop the reporting agency from releasing your
reports and confidential information without your authorization. This freezing
action will not stop or prevent any necessary pre-approval screenings for new
credit. No fees are required to be paid for requesting a freeze. Freezing fees
will depend on your residence.
Banks and ChexSystems
Banks, especially, use ChexSystems to
identify whether they would like to pursue a customer and allow them to open a
checking account with them. The ChexSystems report helps banks and lowers their
risks of onboarding a new customer attempting to start a profile with them.
Yes, banks will typically use ChexSystems to identify
if a new customer opening an account with them will result in risk. ChexSystems
are the helping hand to banks where they can carefully screen applicants and
review full financial reports for problems the applicants may have had in the
past such as unpaid debt, past due fees, or any suspicious activity on their
checking accounts from the past 5 years.
You can use ChexSystems, as well. You
can order a report of your financial background. Your report will be mailed and
arrive within five business days. The good news is that the shorter your
ChexSystems report is means that you have the least amount of negative account
activity and history!
Once you are in the ChexSystems, it
will decrease your chances of opening up new accounts at banks.
Yes, you can check ChexSystems online
and request a report from them by visiting their website. Other than gaining
access to your reports, you can learn more about identity theft, freezing reports, disputing information, or simply contacting a representative.
Anyone can use ChexSystems. You can
order a personal report that will give you all of the information about your
The report includes: Check writing history and checking account applications, openings, and closures.
Review your report and if you find that
there are inaccuracies you may dispute them. If there is a case where you have
been a victim of bank fraud or check writing fraud, your report will show all
Every consumer is allowed to order one
free report each year. According to the fair and Accurate Credit Transactions
Act, consumers can now order their free ChexSystems report yearly!
Reading your ChexSystems report goes a little like this.
You will be shown a lot of information including:
- Source of
- Bank / Credit Union with
information about you and your accounts.
- Reported Name
- Date Reported
- Day complaints began
about your referred accounts
- Reported For
- A description of your
account and reported incident that occurred i.e. Fraudulent activity, unpaid
- Reports if the issue was
- Closure date
Yes, both banks and credit unions will
use ChexSystems to reveal your past information to them. Here is a list of
banks and credit unions that do and do not use ChexSystems:
- All America
- Blue Federal
- Bank of
- TD Bank
- U.S. Bank
- Wells Fargo
For the complete list of banks and
credit unions that do and don’t use ChexSystems click here.
Banks That Do Not Use ChexSystems
There are a handful of banks that do
not use ChexSystems. Just to name a few:
- Axiom Bank
- United Bank
Financial Federal Credit Union
- Green Dot
- Wells Fargo
ChexSystems is a commonly used reporting
system by banks. There are however, banks that choose not to use it. It is not
uncommon to find banks that will not take the take to check your records.
There is a term called “second chance banking” if you have had a few
negative incidents on your ChexSystems report.
If you are interested in getting
approved for the second chance banking, you can use overdraft protection, if
this is a common problem you have had in the past.
There are a few reasons why
your report may contain errors. Mistakes happen all the time. No bank is perfect and information
can input incorrectly. It happens. Bank employees may be typing in information
too quickly or end up inputting numbers that don’t match yours. Descriptions
could be poorly written and be misinterpreted. The incident may have been
Another reason for error could be because of fraud and/or identity
theft. IF you have ever beena victim of fraud, you know that identity can
easily happen and become a huge headache to deal with. With technology today,
people can steal information from others and use it to their advantage. There
are people who try to pose as you and try to use your bank accounts.
In the case that you notice missing/incorrect information or
random activity after reviewing your
report, you can legally submit a dispute through the ChexSystems’
website. Under the discretion of the FCRA, the agency and company must
complete an proper investigation
of your dispute, for free. Any errors must be corrected by the company that
provided the false information.
If it so happens that you find incorrect personal information on
your ChexSystems report, such as incorrect addresses, social insurance number,
incidents that may have never occurred, no closure reports for resolved
matters, you can definitely dispute this and ensure that all mistakes be
corrected immediately. If you believe you were falsely accused for fraudulent
acts on your bank account, you can bring it up in the dispute and to your
financial institution for providing false information to ChexSystems. Always
check that your information is correct with all of your banks and credit unions
to ensure that these problems and misinformation does not happen again and save
yourself the trouble.
Here are some steps you can take when filing your
- Mention the error in your report. Circle, underline, or highlight
the error on the physical report. Make sure you photocopy one to send back to
the bank or ChexSystems. Do not send them the original. Instead, keep the
original for yourself.
- Use the right forms to file your dispute. You will need separate
forms to file more than one dispute on different matters. Make sure you prepare
the proper letters and include all of the necessary information.
- After gathering all of your forms, information, and dispute letters,
you cane either dispute your case online, by mail, or by fax.
Completing the online forms requires you to read and review the
directions on how to properly fill out the forms. Agree to the Terms and
Conditions below. You will also be asked if you received your Consumer
Fill in all of the necessary information on the form and follow
the instructions on the page. There will be a section titled “Dispute 1:
Details.” In this section, you can report what the dispute is, the source (Your
bank), and the date of the problem item in your report.
In the section titled “Nature of your dispute,” you can complete
your write-up about your dispute and explain what the issue is in a 2,000-character
limit letter. You also have the option to upload attachments with the supported
file formats being: JPG, BMP, PNG, TIF, TXT, RTF, PDF, DOC, DOCX. Keep in mind
the limit is 25 megabytes. Remember to upload a photocopy of your report with
the circled problem to support your claim.
If you have another item you would like to dispute, remember to
file a new dispute under “Dispute Another Item.” If you have more than one
matter you would like to dispute, you have the ability of disputing up to 50
Once all of your disputes are complete, it is time to send your
documents in. You can either send your documents:
- Online: Enter your security code found at the bottom of the form,
then click “Submit.”
- Mail: Send your dispute directly to ChexSystems, Attn: Consumer
Relations, 7805 Hudson road, suite 100, Woodbury, MN, 55125.
- Fax: Send to 602-659-2197
Don’t forget to contact your bank and credit union and send them
all of the documentation, dispute letter and any other pertinent information in
proving your case.
Waiting for your response from ChexSystems? it could take up to 30
ChexSystems and Your Information
The ChexSystems agency will keep your records on file for
up to five years starting from the closing date of your account. Any money you
owe the bank from overdrafts will stay on your ChexSystems record.
Your account can
and will be removed if t is suspected that it was opened by someone else other than
you or it was a due to identity theft.
Problems like these will limit you when it comes time to open a
new account with a bank, and you will ultimately be denied.
If your ChexSystems report causes a bank to deny you from opening
a bank account, you can order your report within two months (60 days) of
Clearing Your ChexSystems Record
Have you had trouble opening an account at a bank and are
wondering what the problem might be? It is possible that your bank has done
their research and background checks with ChexSystems.
So how can your clear your ChexSystems record and start fresh?
- You can start by Requesting
your ChexSystems report. By reviewing your report, you will be able to
understand why your bank ahs decided to disapprove your new account. You can
request this report once a year. Want to request your report? You can call ChexSystems at 800-428-9623 or
visit the ChexSystems
website. You can fill out the Consumer Disclosure form and submit it
online. If you prefer to send your form
by mail, you can send it to Chex Systems Inc, Attn: Consumer Relations,
7805 Hudson Road, Suite 100, Woodbury, MN, 55125. If you would like to fax your form, the ChexSystems Fax
number is 602-659-2197.
Errors online by visiting the ChexSystems website. You can fill out the
dispute form and upload any files that are necessary to support your claim.
When you have completed the form and have reviewed it, you may click “submit.”
You can send your form via mail or fax, too. Simply print out the dispute form
and fill it out. Include information and copies of documents. Send them to the
Fax or Mailing address previously listed.
- If you prefer to speak with
a representative, you may call the ChexSystems phone line. Note that you
are not allowed to attempt to resolve any disputes that relate to identity
theft or fraud over this phone line.
Sometimes we get caught up in our day to day lives, work, and
family. As busy as life gets, we have to pay off our debts. This is why it is important to pay any kind of debt you may still
be owing. Pay it as soon as you can to clean your record.
Another way to clear your ChexSystems record is to ask creditors
if they would kindly remove your information from the system. Ensure that you
pay your debts proper to asking. Once this is complete, you can then request
for your information to be deleted. Remember to keep any receipts or documents
that have to do with paying your debts so that you have a paper trail in case
they ask for verification.
Lastly, if you do not mind waiting, you can leave it until the 5-year
mark for your information and records to be completely removed from
ChexSystems will not close your bank account. However,
they can prevent you from opening new bank accounts. The only time ChexSystems
will close your account with them is if you request it and request it by your
Opening a New Account
If you have had previous problems with your ChexSystems account,
then you will surely have difficulty with opening a new account. Check bank policies to ensure you are able to open a new
account. Order and review your ChexSystems personal report before attempting to
open anew account.
How to Keep Yourself Out of
If you have ever had negative activity on your checking accounts,
it is likely those actions have landed you in the ChexSystems records. You may
have not known, but ChexSystems has been keeping an eye on everyone’s checking
accounts for any type of negative activity. Unfortunately, there are many
people who cheat the bank and cannot be found anywhere in ChexSystems.
Something as simple as overdrafts and missing fee payments are of
the most common reasons why ChexSystems would target someone. If you want to learn how to
stay out of ChexSystems, you can do the following:
- Always stay up to date on your bank account balances
- Inquire about the length of time it takes for deposits to be credited
to your bank account
- Ensure you do not choose to write a check if there are
insufficient funds in your account to cover it
- Review your account before closing it by clearing all checks,
stopping all automatic debits, and paying any unpaid fees
By taking these necessary steps, you will be able to have no
problem staying out of ChexSystems.
Maintaining a Positive ChexSystems
It’s important to know the right steps to take in maintaining a
glowing report on ChexSystems. If you recently discovered that ChexSystems has
a profile report on you, you can rest assured that you have the ability to
break the cycle and add some positivity to your report.
Want to learn how you can maintain a
positive ChexSystems report? Here are ways you can do just that:
- Halt automatic payments before you close a checking account: Sometimes it will take the bank more than a week to process any
transaction that needs to be deducted from your account
- Go to your bank or credit union to close your account: do not let your account become a negative balance before closure
- Allow enough time when depositing checks: before writing against the balance
- Be mindful with your joint accounts: If something were to happen to your joint account, both account
holders will be accountable if something happens to it
- Protect your debit cards: Never
share your card or PIN number with anyone. Always keep this information private
and do not write it down anywhere where someone could easily find
- Avoid post dating any checks: Your
account could get closed if you have bounced checks, you can cash them out
- Balance your check book: Avoid
overdrafts and add account protection
- Report stolen or lost checks: When
you notice you have misplaced your checks, notify your bank immediately to
protect yourself from any fraud that could come of the situation
- Contact your bank if you are planning to change your address: Ensure your bank has all up to date and correct address
- Always look at your bank
statements on a regular basis: to make sure there is no unusual activity or an
item that doesn’t seem to coincide with your regular activity
You will never have a negative ChexSystems report if you follow
these steps. The main takeaway here is that you should always be aware of your
bank accounts. Regularly review your statements for any unusual activity. If
you notice something doesn’t look quite right, or see that there is missing or
incorrect information, notify your bank right away.
If you requested a Consumer Disclosure Report from ChexSystems and
notice that they may have incorrect information about you or the numbers do not
add up, submit a dispute as soon as possible. Resolve any issues between you,
ChexSystems, and your financial institution for the least amount of worry.
Review any financial history, and if something looks suspicious,
take action. ChexSystems reports are a great way to investigate your checking
accounts and really get a clearer understanding of your financials.
It doesn’t hurt to order your Consumer Disclosure Report and
review it so that you can stay on the right track.
Now, if you ever get denied by a bank in the future when you try
to open a new account, remember ChexSystems is likely the one behind the
decision banks make about their customers.