Dispute A False ChexSystems Report
You can dispute a ChexSystems report if it is preventing you from getting a checking account. ChexSytems is an account verification system for bank deposits and is also a credit reporting agency just Equifax, Experian and Transunion. ChexSystems is responsible for reporting data on individuals who have defaulted on or misused a deposit account. Different financial institutions such as credit unions, and definitely banks will access information from ChexSystems. If the information in inaccurate, it could prevent you from being able to open a bank account.
Most major credit unions and banking institution use ChexSytems to verify your banking history before they will issue you an account with their establishment. ChexSytems keeps record or reports about your banking activities for the past five years. When you apply for a deposit banking account, the banking or financial institution uses what ChexSystems reports to protect them from risking applicants who have a history of deposit account abuse. Some information that may be included in your ChexSystems account would include:
- Bank account closure due to overdrawn accounts
- Check fraud
- Excessive bounced checks
- Savings account misuse and abuse
- Multiple overdrafts
- Balances that have not been satisfied
Although ChexSystems does not approve or deny account itself, it does give the financial information they need in order to protect themselves from risky applicants who may cause future financial loss. The information in ChexSystems is active for five years, after that it is supposed to be purged from ChexSystems. So if there is something false on your account, it is to your advantage to get it updated or removed entirely. You need a bank account in this day and time so it is important that you take every step to ensure that ability. Just like the credit bureaus, sometimes they just get the information wrong or even put other people's derogatory information on your ChexSystems report which adversly affects you when you are trying to get something accomplished. It is your legal right to dispute false information and have it taken off your report.
What Happen If There Is Outdated Or Incorrect Information On Me In ChexSystems?
Dispute! Dispute! Dispute! This information can affect your chances of getting a bank account or a credit union account for at least five years. Even if you don't need a banking account, you should still make sure your ChexSystems report is accurate. You can get an annual copy of your CheSystems account by contacting them by mail or phone. If you find derogatory information on your account, the first thing you should do is contact the financial institution to have them update your account so that it is reflecting properly. If you don't know how to contact the banking institution or if they refuse to do anything about it, then you need to dispute the information directly with Chexsystems. Chexsytems, just like the credit reporting bureaus have to investigate each dispute and remove those that are not verifiable. Like the national credit bureaus, they have to comply with the Fair Credit Reporting Act (FCRA). The ChexSystems collection agencies are also bound by the Fair Debt Collection Practices Act (FDCPA). So you do have some protections from misinformation and harassment.
How Do I Dispute Outdated or Incorrect Information On My ChexSystems Report?
You must contact ChexSystem's Consumer Relations Department as soon as you are aware of the inaccuracies on your report. Send them a dispute letter via certified mail and keep a copy of both the letter and the sign receipt when the mail is signed for and accepted. Keep any and all information and correspondence to and from ChexSystems so that you may access it with ease.
Sample Letter To ChexSystems Fro Inaccurate or Outdated Information
Address: (City, State and Zip)
RE: Dispute of inaccurate Information on ChexSystems account with Social Security Number: (Include Social Security Number)
Attn: Consumer Relations
7805 Hudson Road, Suite 100.
Woodbury, MN 55125
Fax - 602- 659-2197
Phone Number - 1-800-428-9623
To Whom This May Concern:
My name is _________________________, social security number __________________ and current address is _______________________. I just recently received a copy of my annual ChexSystems report and found that there are some reports from financial institutions that are incorrect. The following financial institutions have incorrect information on my ChexSystems profile:
Account# (if applicable)
Then itemize each information from this financial institution that is incorrect. Whether it is the amount, or the names of the account, or even the fact that this is NOT your account it should all be itemized under the bank name.
List the next Financial institution and the inaccuracies.
Please remove this inaccurate filing from my record and update my file with urgency. Please also send me written confirmation that these inaccuracies have been removed from my ChexSystems report.
Thank you in advance for your attentiveness and cooperation
Full Name Printed
Full Name Signed
Always check with ChexSystems by calling their toll free number above to make sure you have the most accurate and updated mailing address before you mail your dispute letter. That number is to the Customer Relations Department which handles disputes so they should be able to help you with all your dispute needs.
As a precaution, check to make sure ChexSystems has registered with the Secretary of State in your state. You may not even have to go through the dispute process. Since ChexSystems sometimes forgets to register with the Secretary of State, all you have to do is send a letter to the bank stating that they are not registered and send a copy of the same letter to your State's Attorney General's office as well as ChexSystems. If they are not registered to do business in your state then they can't report anything on your ChexSystems record. This is something you can do whether the information is wrong or not. It is what you may call, a legal technicality.
If there are inaccuracies and outdated information on your account, don't wait for it to fall off. Dispute it today! Just like on your credit report, false information can remain on your report long after the period they are supposed to naturally "fall off."