How Long Does My Information Stay On ChexSystems?
How Long Does My Information Stay On ChexSystems?
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.