What is ChexSystems? How to Get Out of ChexSystems

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Getting out of ChexSystems could be a really tough job but not anymore because we are here to help you with everything you need.

What is ChexSystems?

It is a consumer credit reporting service that keeps a record of all your banking and account details.If you have been denied checking services or you are held ineligible for opening a new savings account then it is probably because of your negative listing on ChexSystems.

How Do You Remove ChexSystems?

If your ChexSystems report looks a bit off to you then you can challenge any information in your ChexSystems report that seems incorrect to you. Following the opening of a dispute, ChexSystems and the involved bank are required to either establish the veracity of the information or have it removed from the report.

However, even because you paid the bank the full amount outstanding on an account does not entitle you to a clean report or the erasure of the negative mark. Your report is a reflection of your financial past; it is not meant to represent your present circumstances.

List of situations when you are under negative listing on ChexSystems:

  • Negative balances owed
  • Abuse of a card, account, or ATM
  • Account deactivation without consent
  • Overdraft fees and returned checks
  • Suspicions of identity theft or fraud

So avoid these situations to prevent falling under the radar of ChexSystem reporting.

NOTE– ChexSystems collects information related to closed accounts only it does not track record of active bank or credit accounts.

SIMPLE STEPS to get rid of ChexSystems

Here are few steps that has to be followed in order to clean up your ChexSystems report:

STEP 1 – Request for your ChexSystems report

According to Federal law, you are eligible to request a free copy of your ChexSystems report once in every 12 months. The report provides a summary of all closed accounts, unpaid bills, returned checks, and other information. This gives you an insight as to why the bank didn’t approve your application.

Ways to request a copy of your report

Visit the websitehttps://www.chexsystems.com/

Through call – Call ChexSystems at toll free number 800-428-9623

Through mail – you can write them at:

Chex Systems, Inc.

Attn: Consumer Relations

7805 Hudson Road, Suite 100

Woodbury, MN 55125

STEP 2 – Address errors or dispute discrepancies with ChexSystems or the bank

You have the right to challenge inaccurate data with ChexSystems as well as the bank or credit union that provided it to ChexSystems. If you come across information that you think is incorrect, acquire proof, such as payment history or bank statements. Then, go to the Dispute Information area of the ChexSystems website and select one of the options listed below to lodge your dispute.

Online: Go to the website at the above mentioned link and click the “submit your dispute now” button. You will be sent to a page where you can submit documents to support your claim and complete a form.

Via mail or fax: Visit the above mentioned website, where you’ll find a link that directs you to a printable version of the “Request for Investigation” form. Then, complete the required fields and attach copies of any supporting documents. You can either mail or fax these documents to the above stated location at 602-659-2197.

Call: Contact a representative at 800-513-7125 if you’ve already gotten a copy of your ChexSystems report.

You can either let ChexSystems contact the bank regarding false reports on your behalf or you can yourself mail the dispute to your bank.

STEP 3 – Fix negative items on your ChexSystems report

In simple words PAY ALL YOUR DEBTS. You will receive a general confirmation of the negative item from ChexSystems within the allotted 30-day period; you must also request confirmation from the originating bank. Pay your debt if your report is correct and you owe money. Consider asking the bank, the collection company, or your creditors whether they would be prepared to settle for less than what you owe if you don’t have enough cash to do so.

STEP 4 – Ask Creditors to Update the Information

Once your obligations have been settled and you have paid all your debts, request that the collection company or other creditor to update your ChexSystems information. Once more, be sure to make copies of all the papers that certify the payoff. While doing so, it’s critical to concentrate on raising your credit score to demonstrate your reliability to banks and credit unions. Although it may take some time, this step demonstrates that you are making efforts to better your financial status and may increase your chances of opening a new bank account.

STEP 5 – Dealing with ChexSystems’s Silence

Send Dispute Letter 3 to ChexSystems if you DON’T hear back from them within the 30-day window. The Fair Credit Reporting Act is violated by their lack of reaction, therefore this serves as a clear warning to erase the information.

In this situation, you should also submit the original bank Dispute Letter 4 asking them to produce documentation of your alleged infraction.

STEP 6 – Watch for the Record to be Deleted from the Database

Wait until blemishes are removed from your record if all else fails. After five years, reported information is typically deleted from your ChexSystems file.

Up to that point, you could be permitted to create a second-chance checking account. These accounts are designed for people who have a troubled financial or credit history. People who have been denied previously from creating new savings account or those whose checks have been rejcted or bounced back. They normally involve monthly fees you can’t avoid and will have to pay monthly, but they can help you rebuild your credit score and qualify you for a traditional bank account, usually within a year.

One last shot

There is one more possibility that can allow you to exit ChexSystems even if the bank confirms that you failed to get your checking account to a good position. A universally challenged piece of information must be reported by the bank to ChexSystems under legal requirements. If they don’t, they are breaking the FCRA, and you can file a lawsuit to get the data erased. You should thus have the necessary evidence to bring a legal claim and succeed if you followed the above instructions and delivered the letters.


Second–chance Banking

You may have been prevented from obtaining a bank account if ChexSystems has banned you as a result of prior financial blunders that have come back to haunt you. However, since not all banks use this consumer reporting agency, you still have alternatives.

Some banks don’t care if a customer has a poor credit history and offer them another chance to keep a checking account open. Even though checking accounts for people with negative credit sometimes include fees, they are the ideal method to start over if you’ve previously experienced financial difficulties. The greatest second-chance banking accounts may be found if you know where to seek. There are banks that don’t run credit checks and don’t use ChexSystems. So if you are looking for such second chance banking options then here we are to help you out.

List of Banks that don’t use ChexSystems

  • TD Ameritrade
  • Green Dot
  • Axiom Bank
  • Wells Fargo
  • GTE Financial
  • Capital One 360
  • BBVA Compass
  • MemoryBank
  • Radius Bank
  • Chime


It might be upsetting and depressing to be turned down for a bank account. But don’t let it undermine your desire to make financial improvements. Look at your ChexSystems report to determine if there is anything you can do to increase your chances of being accepted.

Apply for a second-chance bank account or prepaid debit card if you’re still having trouble being accepted, and make smart use of them. By doing so, you may steer clear of anything else that can harm your prospects of obtaining a bank account in the future.

It may take some time to restore your good reputation with banks and credit unions, but the work may be worthwhile once you resume having the banking experiences you desire.

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