If your bank account consistently runs low on funds or if you’ve bounced too many checks, you might find yourself flagged in ChexSystems. This system is used by banks to track customers who have mishandled or are behind on their accounts. This means that if you’ve had troubles at one bank, opening a new account elsewhere won’t be easy. When banks review ChexSystems, they’ll see your past issues. Some banks do offer ‘second chance’ accounts, but many prefer you to handle any flagged issues first.
ChexSystems keeps track of problems like repeated low balances and fraudulent deposits. Once you’re reported, it stays on your ChexSystems record for five years. Fortunately, you can request a free copy of your ChexSystems report once a year and dispute any mistakes or errors you find.
### How to Clear an Error from Your ChexSystems Report
To fix an error on your report, do the following:
1. **Request Your Report**: Visit the ChexSystems website to get your report. You’ll need to provide detailed information, like your full name, any previous names, and your social security number. They might also ask for your driver’s license number, but that’s optional.
2. **Dispute Mistakes**: If you see an error, fill out a ‘Consumer Request for Reinvestigation’ form. This simple form needs your personal details and specifics about the transactions you’re disputing, along with an explanation of the mistake. Mail this form to the ChexSystems office in Minnesota, and you can find their address on the website.
### How to Clear Your ChexSystems Report If You’re Delinquent
Before opening a new checking or savings account, make sure your ChexSystems report is accurate and all accounts are settled. Banks offering second chance accounts might be more lenient, but ideally, your report should show that your accounts are in good standing.
1. **Settle Your Balance**: Pay off what you owe and get proof of payment.
2. **Get Documentation**: Ask your bank to document your payment. Request a letter from the bank manager stating that your account is settled, paid in full, and that you’re eligible for removal from ChexSystems.
3. **Send Documentation to ChexSystems**: Even after fully paying your account, you’ll remain on ChexSystems for five years unless the bank specifically requests your removal.
Facing financial issues and getting reported to ChexSystems is something many people deal with. But mistakes can be corrected if you’re wrongly reported, or your name can be removed if your account issues are resolved. Clearing your record from ChexSystems is a great step towards improving your financial future.