ChexSystems Removal Instructions

Chexsystems is a consumer credit reporting agency that compiles and distributes reports of consumer bank accounts that are closed due to unpaid overdrafts and other irregularities. Consumer reporting agencies also include credit bureaus like Transunion that report consumer credit information. Chexsystems claims that 80% of banking institutions in the United States use its services. Reports are used by banks and financial institutions who by getting reports from Chexsystems can decide whether to accept a new account application. A consumer who is reported by Chexsystems for account mismanagement will generally be denied a new checking account by any financial institution that subscribes to Chexsystems. A Chexsystems report is maintained for five years after an incident is first reported.

A consumer can dispute items included in a Chexsystems report, and where items are found to be incorrect or invalid, Chexsystems is obligated to remove them. A consumer can also include a statement in their record providing details of the nature of the incidents reported. Anyone can obtain a copy of their Chexsystems report by requesting it from Chexsystems. One free report per year is provided. A dispute can be made directly with Chexsystems through their Customer Relations department or on a form provided by Chexsystems. This form is called the Consumer Request for Reinvestigation and it will serve to initiate a dispute. The form is available on the Chexsystems website and by telephone. Chexsystems publishes a list of frequently asked questions (FAQ) which are displayed on websites operated by a variety of providers other than Chexsystems. Chexsystems provides that it will investigate any issue disputed by a consumer and send a letter detailing results of the investigation to the consumer within about 30 days. It may be possible to have items removed from a Chexsystems report by following this process. However, items are only removed if found to be incorrect by Chexsystems after it completes its investigation.

Aside from the dispute process available through Chexsystems, there are other means and processes available for attempting Chexsystems removal of your report. In the end, any dispute will be handled and resolved by Chexsystems itself, but it may not be necessary to lodge a dispute using only their prescribed process.

Chexsystems Removal Through External Companies

There are companies in business that claim to be able to allow chexsystems removal or correction of reports without any direct consumer action. Actions to dispute negative reports are taken by these companies directly. These companies charge for their services, however, and seemingly the steps they take to remove reports are only the same steps a consumer can take him or herself at no cost. The only advantage gained by using such a service is the convenience of not having to compile and lodge a complaint directly.

There are also free services that offer assistance in removing Chexsystems reports. These services consist of websites that provide instructions to follow to initiate chexsystems removal of your report, along with documents for use in the process. The documents are letters that are to be drafted and signed by the consumer, and then sent off to Chexsystems. Actually, the letters are shown on the websites, and can be copied and pasted into Word or another word processor for editing, and then printed and mailed. These websites provide complete and detailed instructions along with the letters for complete chexsystems removal of reports. One such website provides a set of four letters that are to be sent to Chexsystems in series during a dispute. The first letter serves to initiate the dispute, and subsequent letters are sent if and when Chexsystems fails to respond to the first letter. Any such failure by Chexsystems to communicate will amount to a waiver of the basis of the report, and lead to its removal. A letter is also provided for use in communicating with the financial institution that first filed a complaint, demanding that it, too, take action to verify or remove the complaint.

In the end, the process a consumer will use to get a report removed from Chexsystems is always about the same, regardless of the source of information. A detailed dispute must be lodged in writing with Chexsystems itself. The form used must list the item or items that are actually disputed, and then must provide a detailed basis for the dispute. Chexsystems will be allowed and expected to follow up with the complaining financial institution to verify the item or items disputed by the consumer. If the item or items cannot be verified by the institution, then the report will be corrected or removed.

There is a time limit for Chexsystem’s response to the dispute. Chexsystems must communicate with the consumer within approximately 30 days of the date on which the dispute was filed either confirming the item or items as valid, or indicating that they will be removed from the report. If Chexsystems fails to communicate in this way, then the report must be deleted in due course. The 30 day time limit is not exact.

After Following Our Chexsystems Removal Instructions

Some banks do not subscribe to Chexsystems, and at these banks, it may be possible for someone already reported by Chexsystems to get a new bank account. Other banks that do use Chexsystems will still grant a reported consumer a bank account, often called a “second chance account.” It is even possible for people to gain account privileges without the use of a bank. This can be done with a prepaid Visa or MasterCard debit card. These cards allow deposit of money onto the card account, and then use of the card like any debit card. They are not credit cards and do not create any debt, but they can provide convenience for people who are unable to get a bank account. By following these simple instructions – Chexsystems removal is obtainable for anybody.