If you frequently find your bank account running low or have bounced a few checks, you might be flagged in the ChexSystems database. This system helps banks keep track of customers who have had trouble managing their accounts. If you had issues at one bank, it’s not easy to just open a new account at another bank because they will check ChexSystems and see your past problems. Although some banks provide ‘second chance’ checking accounts, most want you to resolve any issues flagged by ChexSystems first.
ChexSystems records things like repeated low balances and fraudulent deposits. Once reported, the information stays on your ChexSystems record for five years. Thankfully, you can request a free copy of your report once a year to check for and dispute any mistakes.
Fixing an Error on Your ChexSystems Report:
To correct a mistake on your ChexSystems report, follow these steps:
1. Request your report from the ChexSystems website. You will need to provide detailed information, including your full name, any previous names, and your social security number. They might also ask for your driver’s license number, but this part is optional.
2. If you find an error, fill out a ‘Consumer Request for Reinvestigation’ form. You’ll need to provide your personal details, information about the transactions in question, and an explanation of the mistake. Mail this form to the ChexSystems office in Minnesota, and you can find their address on their website.
Fixing Your ChexSystems Report If You’re Delinquent:
Before trying to open a new checking or savings account, make sure your ChexSystems report is accurate and that any outstanding accounts are settled. Some banks offer second chance accounts, but ideally, your report should reflect well-managed accounts.
1. Pay off any balances and get proof of payment.
2. Ask your bank to document your payment. Request a letter from the bank manager that states your account is settled, paid in full, and that you qualify for removal from ChexSystems.
3. Send the letter and proof of payment to ChexSystems. Even after settling your account, you’ll stay on ChexSystems for five years unless the bank requests your removal specifically.
Dealing with financial problems and getting reported to ChexSystems is something many people face. However, if you’ve been incorrectly reported, you can correct the mistakes, or get your name removed if you’ve settled your account issues. Clearing your ChexSystems record is a great step toward improving your financial health.