How Long Will I Be in Chex Systems if I Have "Fraudulent" On It?

ChexSystems reports negative information for several years.

Having a report of fraudulent activity on your ChexSystems file can make it difficult for you to open a new bank account or may cause you to experience other difficulties with your personal checking accounts for several years.

The Facts

Financial institutions often rely on consumer reporting agencies such as ChexSystems to determine whether a prospective customer has a good history of managing their bank accounts. According to ChexSystems, the company gathers information from participating financial institutions on any individual that may have mishandled their account including reports of fraudulent activity such as counterfeiting or forgery. Information about fraudulent activity may stay on the report for a number of years depending on its accuracy and the reporting institution.

Time Frame

ChexSystems will keep information on file for up to five years. However, the Fair Credit Reporting Act (FCRA) allows consumer reporting agencies to keep negative information on an individual's report for up to seven years.

Considerations

The FCRA requires ChexSystems to remove inaccurate information from any file within 30 days. In order to have a report of fraudulent activity removed, individuals must first file a dispute with ChexSystems to determine its accuracy.

References

• ChexSystems Consumer Assistance: Consequences of Mishandling a Checking Account
• ChexSystems Consumer Assistance: Frequently Asked Questions
• ChexSystems Consumer Assistance: Check Fraud
• ChexSystems: A Summary of Your Rights under FCRA