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How to Dispute Information in Your ChexSystems Report

Chexsystem is very similar to credit reporting bureaus, but the information is strictly about your banking history.

The information in your Chexsystem report may prevent you from opening a new checking account or debit card.

You may be denied an account because a bank or credit union reported an account abuse for too many overdrafts, non-sufficient funds, or uncollected deposits that left your checking account in the negative.

What’s Chexsystems?

Chexsystems is a consumer reporting agency that collects data from partner financial institutions based on your banking habits. Some financial institutions use Chexsystems to determine your eligibility for an account. Similar to credit bureaus, Chexsystems must follow the Fair Credit Reporting Act (FCRA) to reflect only accurate information and provide a means for disputing errors.

The ChexSystems, Inc. network comprises member financial institutions regularly contributing information on mishandled checking and savings accounts to a central location.

  • ChexSystems shares this information among member institutions to help them assess the risk of opening new accounts.
  • ChexSystems only shares information with the member institutions; it does not decide on new account openings.
  • Chexsystems is a consumer credit reporting agency.
  • Generally, information remains on ChexSystems for five (5) years.

Chexsystem is very similar to credit reporting bureaus, but the information is strictly about your banking history. Banks and credit unions report information about your banking habits, such as opening accounts, NSF (non-sufficient funds), and overdraft activities. If a financial institution has lost money due to bounced checks, unpaid fees, or overdrawn accounts, it reports this and many other types of information to Chexsystems.

Request Your Chexsystems Report

If you’re denied a checking account or debit card, get a copy of your Chexsystems report. You’ll want to dispute any inaccurate information and satisfy any reported amounts due, the latter requiring more work to clean the report.

Just like you have access to free credit reports from credit bureaus. Under the Fair and Accurate Credit Transaction Act (FACTA) amendments to the federal Fair Credit Reporting Act (FCRA), you are entitled to a free copy of your Chexsystems consumer report, at your request, once every 12 months. You can go to Chexsystems to access your report.

Many financial institutions require you to satisfy any outstanding balances with other banks or credit unions or request an explanation before opening a new bank account.

Dispute Information in your Chexsystems report

You have the legal right to dispute inaccuracies in your report. But first, you’ll need to get a copy from Chexsystems.

  • Request a copy of your report by visiting ChexSystems and completing the online form.
  • ChexSystems will send a copy of your report to the address you used to file it and provide you with a Customer ID for reference. Reports are sent within five days.

ChexSystems is legally obligated to delete the record if the information is unverifiable or inaccurate or the bank can’t confirm that your debt is “unpaid.” This is typically the case if you’ve already satisfied the debt some time ago. You have the option to dispute the debt online or through the mail.

Dispute ChexSystems reports errors online

Once you receive a copy of your report, review it completely by verifying your name, address, and any bank information accompanying it. If you find an error, follow the instructions to dispute the error online.

Dispute ChexSystems reports errors via mail

Under the FCRA, ChexSystems and the furnisher of information (i.e., your bank) are legally bound by the same dispute rules as credit bureaus. This gives you the right to dispute inaccurate information with the reporting agency or the financial institution.

  • Mail your documents to Chexsystems via certified mail to:

ChexSystems, Inc.
Attn: Consumer Relations
7805 Hudson Rd., Ste. 100
Woodbury, MN 55125

How to File a Dispute

After getting a copy of your report, do the following:

  • Review and mark all potential errors in your ChexSystems Report
  • Request to have records validated with a Validation Letter addressed to ChexSystems. Indicate what information you believe is inaccurate and give a clear explanation. Provide details and send any supporting claims.

Keep all records to help you with your dispute case. If you speak with anyone over the phone, record their name, date and time, and details of the call.

  • Wait for a mailed response that may take up to 30 days (21 days for Maine residents) to investigate your claims and send a response.

You have nothing else to do if you’re satisfied with the investigation. Sometimes, you may need to file an appeal and contact the financial institution directly to settle the debt and request it be removed.

You’ll get a copy of your updated Chexsystems report with the corrected information.

Jason Vitug

Jason Vitug is a bestselling author, entrepreneur, and founder of phroogal.com and thesmilelifestyle.com. His purpose to help others live their best lives through experiential and purposeful living. Jason is also a certified yoga teacher and breathwork specialist and has traveled to over 40 countries.

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