Many people aren’t aware that Chexsystems exists, until Chexsystems has taken away their ability to have a checking account. Chexsystems is a consumer reporting agency that banks use to see if you have ever bounced checks or had to have a bank account closed due to your mishandling funds or not paying fees.
It only takes one small report from a bank for Chexsystems to prevent you from being able to get a checking account, or maybe even having your existing account closed on you. Reports to Chexsystems can be the result of identity theft, unpaid overdraft fees, or simply not understanding your account balance. Knowing how to get removal of bad or incorrect information from your Chexsystems report can be critical for your basic financial needs. Information reported to Chexsystems stays on your report for 5 years.
Here is an action plan for you to get any false or incomplete information about your name removed from Chexsystems:
Get a copy of your Chexsystems report: As a credit-reporting agency, Chexsystems is covered under the FCRA, the Federal fair Credit Reporting Act. This means that you are legally entitled to get a free annual credit report Chexsystems for free, just like you are from the major credit reporting agencies like Experian and Equifax. If you were declined an account or had your account closed by a bank within the last 60 days because of negative information from Chexsystems, you are again entitled to a free report. You can get your free report at https://www.consumerdebit.com/consumerinfo/us/en/chexsystems/report/index.htm.
When you review your report, you want dispute any bad or false information by writing a letter to Chexsystems and whoever made the report to Chexsystems (the bank that says you made the error). Include any documentation you have to back up your claim. Mail all of this information to Chexsystems and the reporting group via certified mail; return receipt, to keep your proof of disputing this negative information
Once a dispute is started, the burden of proof shifts to the credit reporting bureaus to prove that the information you are disputing is right, and the credit bureau usually has only 30 days to prove it. A large exception is any dispute that seems clearly frivolous, which is why you included documentation to support your claim.
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If the credit bureau or reporting agency cannot prove that your dispute is untrue, misleading, or clearly inaccurate, then the information you are disputing must be removed from your report. If they cannot prove you wrong, the information must be corrected or deleted from your report.
There is one more step to getting yoru removal from Chexsystems. If Chexsystems or the reporting agency does not prove you wrong in 30-45 days, you need to send a letter to Chexsystems demanding the removal or correction of the information you are disputing. No response is often an indication that no investigation was done about your dispute, and that the information must be removed from your Chexssytems report.