If your account has consistently been running low on funds or if you’ve bounced one-too-many checks, chances are you have been flagged in the ChexSystems. This database is used by banks to track customers who have mismanaged or are delinquent with their accounts. The consequence of this is that if you’ve had an issue at one bank, starting a new account with another bank isn’t a simple fix. They’ll consult the ChexSystems and spot your past indiscretions. While some banks offer ‘second chance’ checking accounts, many prefer you to have cleared up any outstanding issues flagged on the ChexSystems.
This system documents issues like repeated low balances and fraudulent deposits. Once your account is reported, it goes onto your ChexSystems record for five years. Thankfully, you can request your ChexSystems report for free once a year and dispute any incorrect information or errors.
Clearing an Error From Your ChexSystems Report
To rectify an error on your report, follow these steps:
1. Request your report from the ChexSystems website. Be ready to provide detailed information, including your full name, any former names, and your social security number. They may also ask for your driver’s license number for added verification, but this is optional.
2. If you find a mistake, fill out a ‘Consumer Request for Reinvestigation’ form. This straightforward form will require your personal details as well as particulars about the transactions you’re disputing and an explanation of the mistake. Mail this form to the ChexSystems office in Minnesota. You can find their address on their website.
Clearing Your ChexSystems Report If You Are Delinquent:
Before you try opening a new checking or savings account, ensure your ChexSystems report is accurate and all accounts have been settled. Banks offering second chance accounts may be willing to give you another go, but ideally, your report should show your accounts as being well-handled.
1. Settle your balance and obtain proof of payment.
2. Ask your bank to document your payment. Request a letter from the bank manager stating that your account is settled, paid in full, and that you are eligible for removal from ChexSystems.
3. Forward the letter and proof of payment to ChexSystems. Even after fully paying your account, you’ll remain on ChexSystems for five years unless the bank specifically requests your removal.
Running into financial issues and getting reported to ChexSystems is a challenge many face. However, errors can be rectified if you have been wrongly reported, or your name can be removed if your account issues are settled. Having your record cleared from ChexSystems is an optimal way to progress with your financial journey.
