Have banks or credit unions lately been turning your request to open a checking or savings account, citing a negative banking history with ChexSystems?
Do you want to return to regular banking by removing the ChexSystems?
Most banks and credit unions check your ChexSystems report before they allow you to open an account. The financial institutions check negative marks like overdrafts and other untoward acts on past bank accounts.
Take steps to remove your ChexSystems reports properly to be able to open a new bank account.
To remove ChexSystems properly:
1. Know Reasons Why You Are in ChexSystems
2. Check Your ChexSystems Consumer Disclosure Report
3. Dispute The ChexSystems Report
4. Pay Your Debt
5. Reach Out To Creditors To Remove The Derogatory Information
6. Commence A Lawsuit Against ChexSystems (If Needed)
7. Wait For The Record To Drop
Are you excited? Let’s dig deeper!
1. Know Reasons Why You Are in ChexSystems
To properly remove your ChexSystems data, understand reasons that led to be featured in ChexSystems in the first instance. Know that a ChexSystems entry is a result of your negative banking history—as financial institutions report your bank-account behavior to ChexSystems, a consumer reporting agency.
Consider that banks will likely report your account to ChexSystems:
- If a financial institution believes that you are handling your account poorly, you are writing bad checks, or committing fraud; in that case, they close the account and report the account to ChexSystems.
- Where you issue checks or overdrafts when you don’t have enough money in your account.
- If you apply for too many accounts within a short period.
- When you have too many reports on abuse related to the use of debit cards.
- Where the banks suspect you of identity fraud.
- Where you have a lot of fees you are yet to pay, or your bank account balance is in the negative.
- Where you keep losing your bank debit cards repeatedly.
2. Check Your ChexSystems Consumer Disclosure Report
To remove your ChexSystems entry properly, check your ChexSystems Consumer Disclosure reports.
Obtain a copy of your ChexSystems data to see what you need to do to remove your account from the reports; you can obtain the reports by calling ChexSystems or submitting via email the report request form you find on ChexSystems website.
When a bank or credit union denies your request to open a bank account, you have the right—60 days after the denial decision—to request a free copy of your ChexSystems report once every 12 calendar months.
Submit the demand to ChexSystems online through phone calls, email, or fax and expect a response within five working days.
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3. Dispute the ChexSystems Report
To properly remove ChexSystems, dispute potential errors in the ChexSystems report after a thorough review. Don’t leave any error or inaccuracy in the report without taking steps to remove it.
Review your bank records; compare them with the ChexSystems reports and dispute all irregularities or any entry you think relates to fraud.
Gather all your evidence and choose your most suitable mode of submission. Raise your dispute either directly to ChexSystems or to the data furnisher—the organization that sent the information to ChexSystems in the first place.
File your dispute online to ChexSystems by checking the “Dispute Information Section” on the ChexSystems website and clicking to submit your dispute. Fill out the form and upload all necessary documents to support your claim.
Dispute the ChexSystems report by email or fax, go through the ChexSystems website, and link to the “Dispute Information Section.” Print out the “Request for Investigation” fill out the form and provide the documents to prove your claim, and then send it through regular mail.
Raise also as an alternative, the dispute by talking to a ChexSystems representative on phone.
You can also dispute directly with the banks or credit unions where the derogatory information emanated from, requesting them to correct the error in your ChexSystems report; present your evidence to prove your claim.
You can also dispute directly with the banks or credit unions where the derogatory information emanated from, requesting them to correct the error in your ChexSystems report; present your evidence to prove your claim.
4. Pay Your Debt
To remove your ChexSystems properly, pay all debts outstanding with the respective banks and/or credit unions.
Negotiate with the financial institutions a plan on how to pay the debts and encourage them to update your ChexSystems reports.
Negotiate a payment of a lesser amount to settle the whole debt with the banks; and be sure the financial institutions don’t have a problem contacting ChexSystems after you pay.
Know your exact debt profile in the ChexSystems report; review your capacity to pay the debts; and consider the options you have if you are not capable of paying at once.
Make a plan to pay the debts, arrange your priority of payment as convenient for you—and stick to it.
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5. Reach Out to Creditors to Remove the Information
To properly remove ChexSystems reports, reach out to the creditors to remove the report. After you offset the debts, ask the creditor to send an update to ChexSystems to update your status.
Make your request for an update in writing; attach receipts of payment to prove the payment. If the bank does not send the update of your status after your request, ask ChexSystems to update your account status and attach your proof of payments as proof.
6. Commence a Lawsuit Against ChexSystems (If Needed)
To remove ChexSystems properly, file a lawsuit to compel ChexSystems to remove the reports.
If you believe there is a wrong or erroneous item in the reports, ask ChexSystems remove the item—but if the organization doesn’t do it, hire a lawyer to file a lawsuit on your behalf in order to compel them to remove the reports.
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7. Wait for the Record to Dro
To finally remove your ChexSystems report, wait until the record falls off. After you try all the other options to remove your ChexSystems report and the record still stays, let
time run its course.
ChexSystems report normally remains for five years before ChexSystems removes the information in the file.
Request your report to know whether there are any of the records that are already close to five years. Those do not require any action from you, time will take care of them naturally.
You just need to request the report after five years to be sure of the removal.
Conclusion
To remove your ChexSystems appropriately, know the reasons why you got into ChexSystems in the first place—and then check your ChexSystems Consumer Disclosure report.
Dispute the ChexSystems report if there is an error in it. Pay all your debts and reach out to creditors to remove the information.
If ChexSystems refuses to remove the reports after request, commence a lawsuit against the agency. After you do everything you need to do, if all else fails, just wait for the record to drop.
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