How do I Clear Things Off Chex Systems?

ChexSystems is a company that maintains information on how consumers handle their bank accounts. If you create an overdrawn balance that is left unpaid, banks have the right to close the account and report the activity to a Consumer Reporting Agency (CRA) such as ChexSystems. ChexSystems will maintain the information, which can be shared with financial institutions, creditors and potential employers when requested. Fortunately, there are steps you can take to clear the negative information from your file, thanks to The Federal Fair Credit Reporting Act (FCRA), designed to promote accuracy, fairness, and privacy of information in the files of every "consumer reporting agency" (CRA).

Instructions

1. 

   Write to ChexSystems and dispute any item that is reported in your file. The CRA has the burden to prove that the information is not true. This often includes ChexSystems contacting the reporting institution and petitioning proof of the debt. The law requires that they investigate and update your file accurately within 30 days. If this is not done within this time period, the information must be deleted.

2. 

   Reach out to your bank branch manager. The financial institution that reported your information to ChexSystems can request to have the negative entry removed. Ask him to provide you with a letter that states you have paid the overdrawn balance and that ChexSystems can remove the entry with proof of payment. You should get this letter prior to paying the balance, then provide a copy of it to ChexSystems, along with your proof of payment.

3. 

   Request to have your name removed from distribution lists. It is common for companies like ChexSystems to sell consumer information to creditors and insurance carriers. In turn, these companies market their products and services to individuals. Call 888-567-8688) to have your name removed from the lists.

Tips & Warnings

• Balance your checkbook regularly to help you keep track of your balance and avoid overdrafts.

• Make a duplicate copy of your proof of payment and file for safekeeping. Since this information can legally remain on your file for seven to 10 years, you may need to show it to future lenders.

• Check with CRAs like ChexSystems at least annually to ensure you are not a victim of identity theft, meaning someone else is fraudulently writing checks against your account.

• Be aware that a record with ChexSystems or other CRAs can impact your ability to open new accounts, obtain certain types of insurance and work in the financial industry.

• The law does not require banks to report that an overdrawn balance has been satisfied. Therefore it is suggested that you take diligent steps to have the information removed.

• The removal of your name from a distribution list sold to companies is effective for two years only. You will have to renew your request after that time period.

References

• ChexSystems
• Identify Theft
• Consumer Reporting Agency