If you’re on ChexSystems list now, there’s a chance that you will be there for five more years. This means you cannot get a bank account during that time, unless the bank fails to check the Chexsystems list before approving your application. You’re hardly the only one in this predicament. Millions of Americans are stuck using cash and money order to pay for purchases.
Chexsystems is a service that supplies needed information to banks in the event that a new account is applied for. A bank needs to know whether a person can be entrusted with a bank account so they need to know if he did something in the past that makes him a credit risk. The fastest way to do this is to check Chexsystems. On the list are individuals who have committed bank fraud, people have a slew of overdrafted accounts, and those who have bad credit.
If you’re on the list, the bank will consider you blacklisted and reject your application for a new checking account. Most people assume that they have to wait it out. Some think they don’t have any hope of getting off the list for five years. Nothing could be further from the truth! Just by investing a portion of your time, you will be able to get yourself off that list and open a bank account.
The rationale behind this is to on some rules in the “Fair Credit Reporting Act” (or “FCRA”). The Chexsystems, as well as all credit institutions in the USA, are governed by FCRA. The FCRA allows you to dispute all inaccurate information in your consumer report.
If you file a dispute by sending Chexsystems a letter with the details of the errors on your report, they are bound by law (according to FCRA regulations) to re-investigate your report and fix the errors. You don’t even have to wait for a long time to get results. As per the FCRA regulations, the service must re-evaluate and make the necessary changes within 30 days. It may take up to 45 days if you send additional information and more details about the error during the 30 day period. The duration starts from the moment they receive your request.
Here’s the significant part, if Chex Systems cannot verify the details of your dispute notice, they must remove the item from your record. This means if your name was listed there by mistake, you will be able to get your name off that list easily if you act fast.
But first you will have to obtain a copy of your Chexsystems report. You can order it online or by calling (800)428-9623. You will need to wait for a few days for the report to arrive. I suggest you use the time to check with your bank and fix any inaccuracies with them before you file your dispute.
Go over your report and look for reported Information as well as inquiries Initiated by consumer action. Pay particular attention to inquiries not initiated by consumer action. These are the issues that caused a financial institution to pull your records without asking permission. You can find other details on your checks, transactions and other relevant information. If there are details on the debts you owe, and the debts you’ve cleared, record them. These are proofs that you are supposedly in good standing with the banks. After you’ve done this, you are now ready to write your dispute letter.