Chexsystems is a risk assessment service for obtaining credit reports. Banks regularly use this system to find out if a new customer is a credit risk or not. Approximately 80 percent of all US banks and credit unions utilize Chexsystems to sniff out the bad customers from the lot. The founder of Chexsystems is eFunds. Life is more difficult if you end up on the ChexSystems list. The worst part is that you might be on the list for five years unless you do something about it.
What’s the big deal if you’re on Chexsystems? First of all, it won’t be as easy to open a new bank account. Secondly, banks and loaning agencies see you as a credit risk and could put you on their blacklist.
Chexsystems is regularly updated by banks themselves. They provide information on which clients overdraft their accounts several times, commit bank fraud by opening multiple accounts, and refuse to pay the fees. Bouncing a check may put you on the list, as well as having outstanding unpaid fees. Even simple errors on your application form could put your on Chexsystems.
In many cases, people who think being on the list was a mistake try to contact ChexSystems and request for reconsideration. There’s a proper way of doing this. First, you must obtain a copy of your listing to find out what you could have done to deserve being blacklisted by financial institutions.
If you do not have a track record of outright fraud, it is possible that your non-payment of outstanding fees can solve the issue. You just need to report the fact that you’ve paid your outstanding balance to the institutions concerned and use that as a proof of your good standing. Don’t go to Chexsystems if you’re not ready with solid proof that you deserve to be taken off the list.
Here are some more tips for working with Chexsystems to clear your name…
Order your report at chexhelp.com. Call ChexSystems at (800) 428-9623 or (800) 513-7125 or send a written request to: ChexSystems Customer Service, 12005 Ford Road, Suite 600, Dallas, TX 75234-7253 Fax: (972) 241-4772 Local (972) 280-8585
Check your report thoroughly. If you see inaccuracies, list them down so you can include them in your letter of dispute. Ask them to verify all the information in your report. You should also request the company to send you copies if there are documentations done involving your report. Most important of all, don’t forget to request for all erroneous items to be deleted from your report.
Keep copies of everything you send, even if sent via email. Consider sending everything by snail mail so that you have a physical proof. Digital correspondence can be printed out, but nothing is better than a certified mail with a letterhead and a genuine signature. ChexSystems should respond within 30 days. If they don’t, you have all the right to report to the Federal Trade Commission.