Before we even get into the actual subject, we want to make something very clear: we are NOT suggesting that you dispute any information on your Chexsystems report just for the sake of disputing. As soon as you start doing a bit of research, you quickly find out that Chexsystems is required to abide by the same rule the credit reporting bureaus do. As such, you are allowed to dispute any information that you see on your report, and Chexsystems has 30 days to prove the accuracy of the disputed item(s). Anything that can’t be proven must be deleted because the burden of proof rests on the bureaus.

What a lot of websites suggest is that you dispute everything on your report and just hope that some items can’t be proven. This doesn’t qualify as a strategy. In fact when you think about it, it’s downright dishonest. What we are suggesting is that you review your Chexsystems report to spot mistakes. If you do, then we’re happy to provide you with how to go about getting them corrected.

Order your report

To get your Chexsystems report, the simplest way is to go to the company’s website, and go to the tab, “Order Consumer Report.” Once you place your request, they’ll mail you a copy of your report in five business days (here’s a sample Chexsystems report, so you know what to expect). Go over it carefully. If there’s anything more than five years old, it shouldn’t be on there (your information shouldn’t stay on your Chexsystems report for more than five years). Make sure any account that’s paid in full is marked paid, and that all the bank account numbers, dates and amounts are right.

Related: Can I open a bank account if I owe another bank money?

List all the inaccuracies

Inform ChexSystems, in writing, of what information you feel is inaccurate. Include copies of the documentations verifying the credibility of your claim. In addition to your name and address, your letter should clearly, and in detail, itemize each inaccuracy, explaining why you are disputing the information and requesting that it be removed or corrected. You may want to include a copy of your report with the items in question circled or highlighted. ChexSystems contact information and a sample dispute letter are included at the bottom of this article.

You also have the right to request contact information for any company that appears on your report, if not already listed, and Chexsystems is required to provide it. Ask Chexsystems for the contact information and dispute the item with them if you believe it’s inaccurate or need more information.

If the response comes back with all the information you’ve requested, verify the information yourself. Make sure everything checks out with the source of the information. Ask them for documented evidence that bears your signature. You may be able to prove your innocence if there are signs of foul play or identity theft. If ChexSystems responds with no disclosed information, you may have to take matters to a higher authority. You can file a complaint with the Consumer Financial Protection Bureau.

Sending Your Dispute Letter

Mail out your dispute letter via certified postal mail. Certifying your mail is vital to disputing any ChexSystems or credit report because it keeps a documented paper-trail of important dates. ChexSystems is allowed 30 days to respond to your dispute letter from the date they receive it. If you do not receive a response within that allotted time period, ChexSystems is under grounds to remove your record altogether. (Remember to keep all receipts from the post office, as well as copies of your dispute letter and enclosures for documentation purposes).

Chexsystems contact information is as follows:

ChexSystems Consumer Relations
7805 Hudson Road
Suite 100
Woodbury, MN 55125
Ph: (800) 428-9623, (800) 513-7125

Sample dispute letter

[DATE]
ChexSystems, Inc.
Attn: Consumer Relations
7805 Hudson Road, Suite 100
Woodbury, MN 55125
To Whom It May Concern:
I was recently denied a bank account based on the information that ChexSystems maintains under my name and Social Security Number. Upon ordering a copy of my ChexSystems report, I noticed the following entry reported by Wells Fargo Bank:
Source of Information: Wells Fargo Bank – Los Angeles, CA
Reported Name: John Smith
Reported Address: 123 ABC Street, CA 54321
Reported SSN/ID: xxx-xx-xxxx
Drivers License: xxxxxxxxx
State: CA
RTN: xxxxxxxxx Account #: xxxxxxxxx
Date Reported: 01/01/2005
Reported For: Non-Sufficient Funds (NSF) Activity
Original Charge Off Amount: $150.00
I have no knowledge of such an account, and it may have been reported due to error or identity theft.
Please validate this information with Wells Fargo Bank and provide me with copies of any documentation associated with this bank account bearing my signature. In the absence of any such documentation bearing my signature, I ask that this information be immediately deleted from the file you maintain under my name and Social Security Number.
Here is my contact information:
Your Name
SSN: xxx-xx-xxxx
Consumer ID: xxxxxxxxx
Your Address
Sincerely,
Your Name

How To Dispute A ChexSystems Report

Have you been reported to ChexSystems? Are you trying to get your information removed from their database? Many people are in this situation and find it to be very hard. This is because Chexsystems is not designed to interact with individuals. Once you understand what ChexSystems is and its purpose, it will make much more sense.

What is ChexSystems?

ChexSystems is a database. It was put together by the banks, as a place for all participating banks to report the clients with which they have had negative experiences, whether it be unpaid overdrafts, excessive overdrafts, fraud attempts, and so on. The participating banks are the ones that report you, and they are ChexSystems’ only customers. Therefore, only those said banks can request that a name be dropped from the list.

It’s also important to mention that ChexSystems is a database and ONLY a database. It has no influence on whether a bank decides to open an account for a prospective customer, or not. That decision is entirely the bank’s; ChexSystems only provides the information.

So how long does an item stay on ChexSystems’ database?

Once information is reported to ChexSystems, it stays on there for five years, unless the person that has been reported takes necessary action to have their name removed. During that time period, that person is unable to open an account at most major banks, and mostly has to rely on second chance checking accounts to do their financial transactions.

How do I get my name removed?

You should get a copy of your ChexSystems report. As a reporting agency, ChexSystems is obligated to abide by the same laws that the credit reporting agencies do, so you’re entitled to one free copy of your ChexSystems report every year. If you see your name on there, you should get in touch with the bank(s) that have reported you and ask what you have to do to have your name removed.

Most of the time, it has to do with unpaid overdrafts. If that’s the case, the bank will typically require that you pay off the overdraft before they put in the request to have your namre removed. Even if they promise you they will do it, push to have that promise in writing. Once the bank(s) have completed the necessary paperwork, it will only be a matter of time before your name is taken off.

How Long Does My Information Stay On ChexSystems?

Identity theft is when someone uses, without permission, your personal information in order to commit any fraud and other crimes. We like to think that this is the kind of thing that only happens to people who are careless with their personal information, but the reality is that unless you consciously watch yourself, handing over sensitive information is surprisingly common. Also, several recent studies show that a significant number of identity theft victims know the person that victimized them. Javelin Research found that a shocking 17% of identity theft crimes are perpetrated by people that the victim knows, such as friends or family members. Additionally, a recent study by the credit bureau Experian found that 55% of identity thefts perpetrated against children were committed by someone the victim knew. You should always be careful with information like your Social Security number, credit card number(s), birth date, employment information, bank PINs, driver’s license number, etc., because if they fall into the hands of unscrupulous individuals, you can get into a lot of trouble and potentially spend months trying to fix your credit and repairing the damage.

Personal Belongings

• When you are out in public or social gatherings be sure to hold onto your purse or wallet or ensure that it is in a secure place. Don’t leave it unattended at work, restaurants, health clubs, in a shopping cart, or at social gatherings, where identity thieves might be on the prowl.

Credit Reports

You have the right to one free credit report per year per credit bureau, meaning that you get 3 free credit reports a year. The information on all three should be similar, but they won’t be identical, if only because businesses vary in what credit bureaus they report information to. Here’s what to look for on your credit report:

• Inquiries. Match them up with applications you submitted, or requests you made for credit, while keeping in mind that your creditors, employers, or collection agencies might recheck your credit periodically. Inquiries that seem clearly out of place, based on the date or company, should be investigated carefully as evidence of possible identity theft.
• Incorrect Address,  Employment. It is not uncommon to find a small “typo” here or there, but a bogus recent address or employment change calls for careful investigation.
• Inactive Accounts with Activity. Identity thieves have been known to change the billing address on on old accounts you’ve forgotten about, a use them as if it were their own. A credit report shows whether each account is open or closed, and the activity.
• Accounts You Are Unaware You Have. It may be wise to close accounts you no longer use. A credit report can remind you of them.
• Unexpected Public Records. Credit reports show court judgments, liens, foreclosures, evictions, and other public records. Look for anything that is incorrect, and clearly not yours.
• Unexpected Derogatory Information. The typical pattern of an identity thief is to run up lots of bills, then not pay them. Look for unexpected past-due items.

Social Security Card and Number

• A dishonest person who has your Social Security number can use it to get other personal information about you. It all boils down to being careful with your card and your number.
• Show your card to your employer when you start a job so your records are correct. Provide your Social Security number to your financial institution(s) for tax reporting purposes.
• Keep your card and any other document that shows your Social Security number on it in a safe place.
• DO NOT routinely carry your card or other documents that display your number.
• In some identity theft cases, criminals have put up fake websites and the like, inviting you to join clubs, get free travel vouchers or open up credit accounts with zero-percent finance charges — asking only for your Social Security information in return. Don’t fall for those scams.

Bank PINs

• Some identity thieves also engage in “shoulder surfing”: looking over your shoulder or from a nearby location as you enter your Personal Identification Number (PIN) at an ATM machine. By installing a fake ATM device that reads your card’s encoded data, or by distracting you while your card is taken or switched with another, an identity theft can then use your PIN to drain your bank account without your knowledge.
• When entering PIN numbers at direct purchase terminals, bank machines, or telephones be sure to cover the keypad to stop shoulder surfers.
• If you are in a store where you suspect the debit card machine is compromised, purposely enter the wrong PIN number. If the machine accepts it, then you know its compromised whereas if it forces you to re-enter the PIN number, then it is secure.

Internet Passwords and Security

• Some enterprising identity theft criminals anonymously hang out in areas where they know people tend to be careless with computer passwords — like Internet cafes and coffee shops that offer free Wi-Fi access — and try to steal personal information. It’s important that you don’t access, say, your bank account, on a free and unsecured Wi-Fi connection.
• Choose difficult passwords not your mother’s maiden name or your pets name. Avoid keeping a written record of your bank PIN number(s), social security number and computer passwords, and never keep this information in your wallet or hand bag.
• If you must write them down, then don’t note clearly write what each number is for and don’t keep in a location that easily accessible.

Facebook, MySpace, and Other Social Media

• Set your Facebook and other profile privacy levels so strangers (including identity thieves) can’t access your information, and be hyper-aware of any scams by double-checking where a link is taking you or not clicking on anything that seems fishy.
• Limit the amount of “time and place” data that you expose through social media. Avoid publishing specifics about your whereabouts and schedule.
• Only accept friend requests from people you know.

Mail

• Stop the barrage of prescreened credit card offers in your mail. Those offers make it easy for your information to get into the hands of identity thieves.
• Invest in a shredder. Even if you opt out of the credit card offers, you may still get the occasional letter. Make sure you shred these and anything with account numbers and personal or billing information: statements, credit card offers, pre-approved credit card applications, credit card receipts, and insurance forms. Don’t let dumpster divers get access your information.
• In addition to checking monthly credit card and bank statements, pay attention to billing cycles or to a lack of mail being delivered to your address. If you’re not receiving your statements or bills, don’t assume the issuing company has made an error, it is possible that identity theft is behind  the intercepting of the mail.

Credit Freeze

• If you want to make it even harder for possible identity thieves, you can implement what is known as a credit freeze, which basically prevents anyone from viewing your credit report for an indefinite period — up to seven years, by law. A security freeze can help prevent identity theft.
• Most creditors and businesses will not open credit accounts without first checking your credit history. If your credit files are frozen, even someone who has your name and Social Security number won’t be able to get credit in your name.
• Not all U.S. states allow credit freezes, however, so you’ll want to check the specific rules for the state in which you live.

How To Prevent Identity Theft

If you’ve been reported to Chexsystems, contrary to what you might have been told, you do have options. This is especially true if you have been unfairly reported. What a lot of people don’t know is that Chexsystems is ruled by the Fair Credit Reporting Act and that opens up some options to you.

The first thing you can do is request a copy of your Chexsystems report. Since they’re bound by the Fair Credit Reporting Act, you’re entitled to a free copy of your report every year. This is obviously excellent for monitoring purposes.

You can land on Chexsystems’ list for a number of reasons: if a bank believes you’ve written a check with insufficient funds, closed an overdrawn bank account, or if you’ve done anything that the bank doesn’t approve of, they will report you. Once your name is on that list, you’re led to believe that it’s supposed to stay there for five years, and that you will only be able to open accounts through second chance checking. But that’s only if you don’t do anything about it.

When you receive your report after requesting it, check it carefully. Make sure that all the information that’s included there is accurate. If, for example, you had an overdraft account that was then closed, and in the meantime you paid it off, the bank is required to mark that it was paid in full. Check whether or not that was reported correctly. Anything that you spot that is incorrect, make a note of it for your next course of action.

Said course of action involves writing a certified letter to Chexsystems, where you dispute whatever is wrong in your report. You should address the letter to

ChexSystems, Inc.

7805 Hudson Road, Suite 100

Woodbury MN 55125

Your Chexsystems report includes a “consumer ID number”. Use that to identify yourself, along with your name, just to make things easier. List the incorrect information, and then the correct information as it should have appeared. Include a short explanation of why the information is wrong, and specify that you’re enclosing documentation. Include whatever proof you have, such as a cancelled check to show payment, a bank statement, or whatever.

Chexsystems must contact whatever bank reported the information, request an investigation, and get back to you in 30 days. If the report is wrong or can’t be verified, it will be removed.

If it’s not removed, you can add a statement to the item explaining your side of the story. Write or fax Chexsystems at the same address above, saying you want to include a consumer statement, and say what you want to appear. It must be less than 100 words, can’t mention the name of another person or business, and should be a clear summary of why the report shouldn’t be counted against you. When you apply for a bank account and the bank pulls your Chexsystems report, they’ll be able to read your statement, so think what you’d like to tell a busy banker about the situation.

If you can’t get off Chexsystems even by disputing and you’re still having trouble opening a bank account, there are non Chexsystems banks that  don’t care whether you’re on it or not. Using one of them may be the simplest solution in that case, until five years pass and Chexsystems finally removes you.

Related: Bank Of America’s Policy Regarding ChexSystems

Get Off Chexsystems

If you’ve never had trouble opening a checking account, then odds are you have no idea what ChexSystems is. On the other hand, if you’ve been trying to open a bank account and find yourself unable to do so, it’s likely that it’s because of Chexsystems. ChexSystems was initially developed to detect fraudulent activity and assist financial institutions with risk management analysis, particularly for individual customers. Banks that do not use Chexsystems are not impossible to find, although the company is pretty aggressive marketing-wise and its goal is to have 100% of the banks using its services.

Much like your credit score monitors the way you manage your credit and documents your credit history, Chexsystems monitors your banking activities and documents your banking history. Besides being a credit reporting agency, it’s also a licensed debt collector. From the reporting agency standpoint, though, just like you can request one credit report per year from each of the major credit reporting companies, you’re also entitles to a ChexSystems report, once a year, at no cost.

Related: Disputing mistakes on your ChexSystems report

Here’s what a sample ChexSystems Consumer Report looks like.

September 29, 2003

JOHN C CONSUMER

123 MAIN ST

ANY TOWN MN 12345

ChexSystems will reinvestigate any item listed in your consumer report that you believe may be inaccurate or incomplete. In order for a reinvestigation to be initiated, please complete the enclosed form and mail it to the address listed above in our letterhead or by fax to 602-659-2197.

This report was prepared for JOHN C CONSUMER

Consumer ID:12345678 for JOHN C CONSUMER

Please provide your Consumer ID number, along with your Social Security number in any future contact with ChexSystems.

Reported Information Reported Information refers to reports of accounts that have been mishandled, reported for cause, and/or outstanding debts. Reported Information is submitted directly to ChexSystems by members of our service, which consists mainly of financial institutions. Our current practice is to retain this information for a period of five years. SSN/ID indicates a Social Security number, Individual Taxpayer Identification number, Tax ID number, or Employer ID number.

Source Of Information: First National Bank Any Town, MN Reported Name: John C Consumer Reported Address: 123 Main St Any Town, MN 12345 Reported SSN/ID: 999-99-9999 Drivers License: X123456789123 State: MN Joint Name: Mary M Consumer RTN: 123456789 Account#: 987654321 Date Reported: 01/01/2003 Reported For: Non-Sufficient Funds (NSF) Activity Debt Reported: ChexSystems has no debt information available. May we suggest that you contact the source of the information to determine whether or not a debt is owed. Source of Information: Any Town Credit Union Any Town, MN Reported Name: John C Consumer Reported Address: 123 Main St Any Town, MN 12345 Reported SSN/ID: 999-99-9999 Drivers License: X123456789123 State: MN RTN: 123456789 Account #: 987654321 Date Reported: 01/01/2003 Reported For: Transactions Involving Returned Items From Own Account At another Financial Institution. Debt Reported: 160.23 Source of Information: First National Bank   Any Town, TX Reported Name: John C Consumer Reported Address: 123 Main St  Any Town, TX 12345 Reported SSN/ID: 999-99-9999 Drivers License: 123456789 State: MN Joint Name: Mary M Consumer RTN: 123456789 Account #:    987654321 Date Reported: 01/01/2003 Reported For: Non-Sufficient Funds (NSF) Activity Original Charge Off Amount:         $100.00 Paid In Full/Settled In Full Date:    09/14/2000

Inquiries Initiated By Consumer Action

Inquiries Initiated By Consumer Action refers to inquiries resulting from a transaction initiated by you. These include applying for a credit card or completing an application at a financial institution. Please note that the inquiries are part of your credit history and may be included in our reports to others. These inquiries can be viewed for ninety days up to three years.

Inquirer Name:	Any Town Savings
Inquirer Location:	Any Town MN
Inquiry Date:	02/28/2003
Name Provided:	John C Consumer
SSN/ID Provided:	999-99-9999

Inquiries Not Initiated By Consumer Action

Inquiries Not Initiated By Consumer Action refers to inquiries resulting from transactions you may not have initiated, so you may not recognize the source. Members of our service with a permissible purpose include current creditors, pre-approval creditors, and potential investors trying to assess risks. We report these requests only to you as a record of activities, and we do not include any of these requests on credit reports to others.

Inquirer Name:	Renaissance
Inquirer Location:	Beaverton CO
Inquiry Date:	03/24/2003
Name Provided:	John C Consumer
SSN/ID Provided:	999-99-9999

Retail Information

Retail Information refers to returned checks written on an account and certain collection accounts. Retailers and other businesses report this information to Shared Check Authorization Network (SCAN). ChexSystems receives this information directly from SCAN and is not involved in the collection of these items.

For additional information you may contact SCAN by telephone at 800-262-7771 or in writing to SCAN, Attention Research & Resolution, 7805 Hudson Road, Suite 100, Woodbury, MN 55125.

Date Of Check:	01/10/2002
Check Number:	6011
Amount Of Check:	$106.50
Date Check Paid:	Not Paid Yet
RTN/Account #:	12345678/98765543454
Drivers License:	X123456789123	State:	MN
Payee:	ABC Merchant
Date Of Check:	02/11/2003
Check Number:	7025
Amount Of Check:	$513.00
Date Check Paid:	08/23/2003
RTN/Account #:	12345678/98765543454
Drivers License:	X123456789123	State:	MN
Payee:	XYZ Stores

History Of Checks Ordered

History of Checks Ordered refers to a record of check orders placed within the past three years.

RTN/Account Number:	12345678 / 98765543454
Quantity Ordered:	400
Check Start Number:	6060
Date Order Shipped:	03/03/2002

Social Security Number Validation

Social Security Number Validation indicates the year and state that a particular sequence of digits first became available for issuance. This information does not include the name of the individual to whom the number was issued.

999-99-9999 Became available for issuance in 1951 or before inthe state of MN.

Drivers License Number Validation indicates whether or not the format of the drivers license number provided matches the requirements set by the state of issuance.

Drivers License X 123456789123 is a valid format for the stateof Minnesota.

Drivers License Number Verification is information provided to ChexSystems by the state that issued the drivers license number. This information, which is limited to certain states, identifies the name and date of birth of the individual to whom the drivers license was issued.

Drivers License: X123456789123	State: MN
Issued To: John C Consumer
Date of Birth: 01/31/1978

ChexSystems Contact Information

If you have any questions, please contact us at the address or telephone number listed
above in our letterhead or by fax at 602-659-2197.

As you can see, this is a very thorough report. It has drawn criticism because of that. One of the major points is that unlike other credit reports that contain both positive and negative information, a Chexsystems report contains only negative information. This is certainly true, and in response to that, some changes were brought to the way the information was reported and the weight assigned to some entries.

Yet this doesn’t change the fact that being reported to ChexSystems is decidedly not a good thing to happen to you; actually it’s something you should look to avoid at all costs. Otherwise a ChexSystems Consumer Report much like the one on this sample will be there to remind all banks that they shouldn’t be opening checking accounts for you.

© Sample ChexSystems Consumer Report