ChexSystems: Common Questions


 
Who is ChexSystems, Inc.?
ChexSystems, Inc. is a deposit account verification service used by financial institutions such as banks and credit unions. Deposit account verification is simply a tool, used within the banking industry, to aid in the application process of new accounts. The purpose of using ChexSystems is to identify any account mishandlings by potential applicants.
 
What is account mishandling?
Account mishandlings are causes for your bank to close your deposit account. This may include: excessive overdrafts over a short period, fraud, debts owed to a financial institution, or false information given on an application. Each bank has its own policies defining account mishandling and causes justifying closure of an account.
 
What is on a ChexSystems report?
ChexSystems reports contain a variety of information used for determining qualification of a deposit account. This includes:
  • If the applicant has an account closure on file
  • Whether outstanding debts have been paid
  • Validation of applicant’s social security information
  • Validation and verification of applicant’s drivers license information
  • Banks owed money by applicant (usually due to overdraft fees, ATM transactions, or automatic payments that were honored on insufficient funds)
  • Multiple overdrafts within a short period of time
  • Savings account, debit card or ATM abuse
  • If the applicant has checks outstanding on the SCAN database (SCAN is a service used by retailers that keeps track of bank accounts and identification numbers from checks that have bounced)
  • How many accounts the consumer has applied for in the past 90 days
  • History of checks ordered in the past 3 years
 
Do ChexSystems reports contain any positive information?
No. ChexSystems reports only contain negative information unlike other Consumer Reporting Agencies (CRA) who often report positive and negative activity in a consumer’s history.
 
What if ChexSystems does not have a report on me?
If you are not indicated on ChexSystems, you either have no deposit account history or you are in good standings with current or previously used financial institutions.
 
How do I get a copy of my ChexSystems report?
ChexSystems reports can be ordered by mail, phone or fax. If you have been denied an account in the last 60 days, it is possible to obtain a report online.
 
How much does a copy of my ChexSystems report cost?
Under the Fair and Accurate Credit Transaction Act (FACTA) amendments added to the Fair Credit Reporting Act (FCRA), you are entitled to a free copy of your report once every 12 months.
 
How fast are ChexSystems reports delivered?
Banks can access ChexSystems reports instantaneously by internet or phone. Consumer initiated reports are mailed within 5 business days.
 
Do reports stay on ChexSystems forever?
No. Each report submitted to ChexSystems is kept on file for 5 years.
 
How do I get a report removed from ChexSystems?
Reports can be removed by the bank or credit union who submitted it to ChexSystems.

If there was an error by the bank, which led to a report being submitted, you can have the report removed if the error is proven to the bank. Banks can also remove a report if an outstanding debt is paid; however, banks are not obligated to remove accurate reports of account mishandling due to debts owed to the institution. Banks are required to mark the account as paid, if a collection amount is paid back.

 
Can I dispute a report with ChexSystems?
Yes. Disputes regarding a report can also be filed with ChexSystems. When a dispute is received by ChexSystems, they must respond back to you within 30-45 days, depending on how you obtained the report.

After receiving your dispute, ChexSystems must verify your claim with the financial institution that submitted the report. If the disputed information can not be verified by ChexSystems, the information must be deleted from your report.

 
Can I add information to my ChexSystems file?
Yes. You may add a brief statement to your ChexSystems file. To add a statement to your file, the statement must be written and signed with a clear indication that you would like it added to your ChexSystems file.
 
How do I get in contact with ChexSystems?
ChexSystems, Inc.
7805 Hudson Road, Suite 100
Woodbury, MN 55125

Phone: 800-428-9623
Fax: 602-659-2197

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