Consumer Protection Law

Do I Need An Attorney If I Am Reported To Chexsystems?

Short Answer

    ChexSystems is a credit reporting agency that monitors consumer bank account activity, impacting your ability to open new accounts. Negative activities like overdrafts or bounced checks appear on your ChexSystems report, potentially leading to denied account applications. You can request a free report and dispute inaccuracies under the Fair Credit Reporting Act. Maintaining a clean report is crucial for better banking options, and a lawyer can assist with disputes.

A bounced check or negative balance can put a mark on your banking history. ChexSystems is a bank account credit reporting agency that tracks your banking activity. Unfortunately, identity theft can also hurt your ChexSystems report. You should review your ChexSystems credit report and dispute any inaccurate information.

If you have questions about cleaning up your ChexSystems credit report, talk to a consumer protection lawyer for legal advice.

Understanding ChexSystems

ChexSystems is a credit reporting agency that tracks consumer bank account activity. Financial institutions use ChexSystems to check your banking history. They use the report to determine your risk level. A bank may deny your checking account application if you have a history of negative overdraft accounts.

Most consumers are aware of the major credit bureaus, Experian, TransUnion, and Equifax. These provide an overall view of your credit history. ChexSystems tracks deposit accounts in banks, credit unions, and other financial institutions. Reporting includes closed checking accounts and savings accounts from your past.

How ChexSystems Affects You

When you apply to open a new savings or checking account, the bank can check your ChexSystems report to see your banking history. A ChexSystems credit report can determine whether a bank grants or denies a new bank account. Your ChexSystems history will show the following:

  • Overdrafts
  • Returned or bounced checks
  • Banking inquiries
  • Account closure
  • Banking fraud
  • Debit card abuse
  • Collection agency activity
  • Record of check orders

Generally, ChexSystems maintains a record of closed accounts for a period of five years. If there’s negative information on your ChexSystems report, a bank could deny your application for a new account.

Find out What’s on Your ChexSystems Report

The Fair Credit Reporting Act (FCRA) is a federal consumer protection law that gives you rights over your credit reports. You can request a free copy of your consumer disclosure report from ChexSystems. You can submit a request for your report online through the ChexSystems website.

You can also request a copy by telephone (800-428-9623) or mail a Consumer Request for Disclosure Form to:

Chex Systems, Inc.

Attn: Consumer Relations

PO Box 583399

Minneapolis, MN 55458

    Disputing Errors on ChexSystems

    Under the FCRA, you have the right to dispute any inaccurate or incomplete information in your ChexSystems record. You can contact ChexSystems directly to report the inaccuracies. Submit any supporting documentation. ChexSystems will investigate the dispute, and they should notify you within 30 days. ChexSystems can contact the closed bank account institution to reinvestigate the account history.

    If ChexSystems doesn’t resolve your dispute, you can add a statement to your bank history file. You can add a brief statement summarizing the nature of your dispute.

    You may have a negative banking history because hackers stole your personal information to commit identity theft. Scammers could have opened bank accounts in your name to overdraw the accounts or commit check fraud. If you report the identity theft, you can dispute the fraudulent accounts on your ChexSystems report. Submit an identity theft affidavit and any police reports in support of your dispute request.

    Maintaining a Clean Banking Record

    Your banking history is part of your overall credit report. A good credit score means you will get better loan rates and more banking options. If you think there’s a problem with your banking history because of past financial problems or identity theft, check your ChexSystems report. Dispute any inaccurate information to keep a clean banking record.

    Victims of identity theft can put a credit freeze on their credit report to limit any new accounts without their consent. If you put a credit freeze on your credit bureau accounts, remember to freeze your ChexSystems account as well. A security freeze prevents new checking, savings, and credit accounts from being approved in your name. If you need to open a new account, you can temporarily lift the security freeze.

    You can also place a security alert on your ChexSystems file. The alert will notify you anytime a banking institution makes an inquiry on your file.

    Cleaning up your credit is time-consuming. It takes years for negative information to drop off your credit report and consumer banking files. If identity thieves messed up your credit history, it’s up to you to clean up your credit. A lawyer can help with credit reporting, credit disputes, and getting ChexSystems to make sure your banking record is clear.

    For more information about how an attorney can help, contact an experienced consumer protection lawyer.

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