How Long Do You Stay In a Chexsystem?

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Post-reading this you might be wondering what is ChexSystems. If you know this term well and good if you don’t then no need to worry because we are here to help. So, before answering any of your queries first let us brief you about ChexSystems.

All you need to know about Chexsystems

What is ChexSystems?

ChexSystems is a check verification and consumer credit reporting agency that is owned by the eFunds division of Fidelity National Information Services.

What does ChexSystems do?

It gathers data from banks and credit unions about closed deposit accounts. Banks and credit unions might use the agency’s report on your banking activities to decide whether to accept your application for a new checking or savings account. To be precise, whenever you apply for a new checking account, ChexSystems reviews all your previous banking data and looks into your accounting history with other banks, and prepares a report which is known as the ChexSystems report. On the basis of this report, it is determined whether your application for a new checking account has to be accepted or rejected.

Operations Performed

ChexSystems is used by 80% of commercial banks and credit unions in the US to examine applicants for checking and savings accounts.

 Over 9,000 institutions, including more than 100,000 distinct bank branches, according to eFunds, employ their services. ChexSystems has 7.3 million records of people whose bank accounts had been cancelled or closed “for reason” as of 1991. Identity verification, account history records, and transaction tracking are the various services provided by ChexSystems.


Data supplied by banks over the previous five years is examined in a ChexSystems study. Reports may detail abnormal account handling, check overdrafts, unpaid balances, fraudulent check deposits, and unsettled balances. When a customer has a bad item recorded, banks may decline to create a new deposit account for them.ChexSystems was identified as a consumer reporting organization subject to the Fair Credit Reporting Act in 1999. Therefore, consumers are entitled to a free annual ChexSystems report. They may contest unfavorable elements and request documentation for the report’s information either from ChexSystems or from their respective banks directly.

What does a ChexSystems report consist of?

ChexSystems keeps track of the history of your checking accounts.

Here are some of the data that a ChexSystems report may contain.

  • Personal data, such as your name, Social Security number, and previous residences
  • Overdrafts and other unpaid negative balances, as well as accounts that have been forcibly closed
  • Suspected activities that may be fraudulent
  • Account inquiries or requests for additional bank accounts
  • Expired fees
  • Public documents

So this was all about ChexSystems now the question arises

What to do If you are listed in ChexSystems?

It’s possible that until you apply for a bank account and are rejected, you are unaware that you have a ChexSystems report. The first thing to do if you’ve been advised that you can’t create a bank account due to bad ChexSystems reporting is to ask for a copy of your Consumer Disclosure. Again, you may use this without paying anything. because according to  Fair Credit Reporting Act, you are liable to request a free copy of your ChexSystems report once in 12 months.

Once you get a copy of your ChexSystems report, you may carefully analyze it to ensure that all of the information is accurate. You have the right to object if you find an inaccuracy or mistake. You may do this online using the ChexSystems website, and after submitting a dispute request, the bank is obligated to look into and evaluate if the details in the claim are true. Investigations are ordinarily finished in 30 days (21 days for residents of Maine), but they can be prolonged by 15 days if you offer more information while the inquiry is still ongoing.

ChexSystems will send you written results upon the conclusion of the inquiry. Even though there is no assurance that any derogatory data will be changed or erased, it’s worth looking into if you think that ChexSystems made a mistake in reporting you.

Finally coming to what you were looking for:

How Long do you Stay in ChexSystems?

Negative information often lasts five years on consumer reports from ChexSystems. Apart from this, your consumer reports stay on Early Warning Services (EWS) as well. Certain negative information may be disclosed for up to seven years too under the Fair Credit Reporting Act. Checking-account reporting companies like ChexSystems are permitted by the Fair Credit Reporting Act to keep some negative information on file for up to seven years. While Early Warning Services, another frequently utilized checking-account reporting firm, provides this information for up to seven years, ChexSystems only reports it for five years.

Although most records won’t last that long, certain bad information may remain on your ChexSystems report for up to ten years. When you apply for a new checking account, the bank will probably examine some type of banking record, such as a ChexSystems report, to see how effectively you’ve previously maintained your accounts. ChexSystems reports can reveal bad behavior from both current and former accounts, including overdrafts, forced account closures, and more. Whether your request for a new account is granted depends in part on your ChexSystems report.

But just as you have the option to challenge incorrect information on your credit report, you can do the same with your ChexSystems report. You may get in touch with the company and ask for a copy of your consumer disclosure report if you’ve never looked at your ChexSystems report before. You may then challenge any incorrect information from there.

Following that, ChexSystems will launch an investigation, which ought to be finished within 30 days of your request. The consumer reporting agency will send you a letter informing you of the findings.

But how long will you have to live with this bad news? Your ChexSystems reports may contain various sorts of information for varying amounts of time. You may get a free copy of your ChexSystems report every year at the ChexSystems website if you want to examine specifically what information is in it. 

Check and cashing Activities

When you start a check-cashing operation, details about that transaction may be visible for up to two years on your ChexSystems record. This action is really reported to ChexSystems by Certegy, a company that assists businesses in authorizing checks and keeping an eye out for check fraud.

You may obtain a free copy of your Certegy report once a year or whenever information from the report has been used to reject your application for a new account, much like with ChexSystems reports. Call 1-800-237-3826 to get a free copy of your Certegy report if you’d want to know what’s in it.

Related Post: What is ChexSystems? How to Get Out of ChexSystems

Fraudulent Activities

ChexSystems reports provide information on possible fraud, such as false information on a banking application and changed checks. Empty envelopes might likewise be inserted into a bank ATM in this manner.

Account Overdrafts

Your report contains details on any instances in which you overdrew your checking account. A few overdrafts won’t likely harm you, though. If you have a history of overdrawing your account and failing to restore it to good standing, this becomes an issue.

Opening a large number of Accounts

Opening an excessive number of accounts might result in ChexSystems flagging you for possible fraud if you seek to establish several checking and savings accounts quickly.

Third-Party Evaluations

Additionally, ChexSystems reports keep track of “inquiries,” or times when a different party has looked at your ChexSystems report. When you apply for a new checking account, or credit card, or start a commercial transaction that calls for your report to be pulled, these evaluations normally take place. Reviews from third parties like these last for up to three years on your ChexSystems report. It may be detrimental to your ChexSystems report if there are a lot of recent inquiries.

The data in your checking report is represented numerically by a ChexSystems score. ChexSystems ratings range from 100 to 899; higher scores indicate a better history of checking and a reduced risk to financial institutions.

Public Documents

Your negative public records, such as liens, evictions, and bankruptcies, are noted in a portion of ChexSystems reports. The record of paid liens and evictions might remain on your ChexSystems records for seven years, just like the majority of other bad information. However, bankruptcy can last for up to ten years on both your credit record and your ChexSystems report.


As it is well said that prevention is better than cure therefore it is better to work on improving your credit score instead of falling in the ChexSystems negative listing.

Focus on changing any banking practices and behaviours that could be harming your ChexSystems consumer score. Here are some pointers that might aid in raising your ChexSystems Score:

  • Do not bounce checks.
  • Set up overdraft protection to prevent overdrawing your account.
  • Avoid opening or closing bank accounts too frequently.
  • Don’t act in any way that may be considered fraudulent.
  • Accounts with a negative balance shouldn’t be closed.
  • Pay all your debts

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