If you were denied a bank account because of information found in your Chexsystem report, then you have the right to request a copy of your Chexsystems report and the opportunity to dispute inaccuracies.
You may be denied an account because a bank or credit union reported an account abuse for too many overdrafts, non-sufficient funds, or uncollected deposits that left your checking account in the negative. Having negative or derogatory information in your Chexystem reports can keep you from getting a new checking account with a bank or credit union.
Chexsystems is a type of consumer reporting agency that collects data based on your banking habits from partner financial institutions. Some financial institutions use Chexsystems to determine if you’re eligible for an account. Chexsystems must follow the Fair Credit Reporting Act (FCRA) similar to credit bureaus to reflect only accurate information and provides a means for disputing errors.
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Dispute Information in your Chexsystems report
You have the legal right to dispute inaccuracies from your report. But, first, you’ll need to get a copy from Chexsystems.
- Request a copy of your report by visiting ChexSystems and completing the form or by calling the toll-free number.
- ChexSystems will send a copy of your report to the address used in filing the report and provide you a Customer ID for reference. Reports are sent within five days.
ChexSystems is legally obligated to delete the record if the information is unverifiable or inaccurate or bank can’t confirm that your debt is “unpaid” This is typically the case if you’ve already satisfied the debt some time ago. You have the option to dispute online or through the mail.
Dispute ChexSystems report errors online
Once you receive a copy of your report, review it completely by verifying your name, addresses, and any bank information that accompanies the report. If you find an error, follow the instructions to dispute the error online.
Dispute ChexSystems report errors via mail
Under the FCRA, ChexSystems and the furnisher of information (i.e., your bank) are both legally bound by the same dispute rules as credit bureaus. This gives you the right to dispute inaccurate information with the reporting agency or the financial institution.
- Mail your documents to Chexsystems via certified mail to:
ChexSystems, Inc.
Attn: Consumer Relations
7805 Hudson Rd., Ste. 100
Woodbury, MN 55125
How to File a Dispute
After getting a copy of your report, do the following:
- Review and mark all potential errors in your ChexSystems Report
- Request to have records validated with a Validation Letter addressed to ChexSystems. Make sure to indicate what information you believe is inaccurate and give a clear explanation. Provide details and send any supporting claim.
Keep all records to help you with your dispute case. If you speak with anyone over the phone, record their name, date and time, and details of the call.
- Wait for a mailed response that may take up to 30 days (21 days for Maine residents) to investigate your claims and send a response.
If you’re satisfied with the investigation, then you have nothing else to do. In some instances, you may need to file an appeal and contact the financial institution directly to settle the debt and request it be removed.
You’ll get a copy of your updated Chexsystems report with the corrected information.
