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

Fresh Start Checking Accounts

If we’re talking about Fresh Start Checking Accounts, then there has to be a negative record at one of the companies that track people’s checking activities. Maybe you’re been reported to Chexsystems, or maybe you have a record with Telecheck, it doesn’t even matter. What matters is that you’re going to have to find banks that don’t use Chexsystems in order for you to get what is also known in the industry as a second chance checking account. Chexsystems is kind of the banking system’s watchdog, in that it keeps tabs on your bank related history and will keep on putting notes against your name you have amounts overdue against your name or if you have the fraud against your name.

What that means is that a negative ChexSystem record will prevent from qualifying for a checking account at roughly 80% of the banks in the country. Until people are victims of it, they have no idea how bad it is to not be able to have a checking account: to make a long story short, no access to checking services like ATM transactions, no telephone banking, no online banking, no direct deposit, and you have to carry cash to conduct all your transactions: without a bank account cash is your only option. Not only is it impractical to carry huge amounts of cash in your pocket, it’s also very risky.

The fresh start checking account helps solve this predicament. Of course, it comes at a cost (most banks charge a monthly fee of $5 to $10 to open a fresh start checking account under your name), but consider it as a small price to pay for your convenience

Upgrading from Fresh Start Checking Account to Regular Checking Account

Plus, it’s good to keep in mind that many of those banks also make it a policy to upgrade your fresh start checking account to regular checking account status within 6 to 12 months, provided that you’ve kept your account in good standing and incident free over the specified period. By incident free, they mostly mean that you’ve had no NSF fees.

Banks That Do Not Use ChexSystems & Offer Fresh Start Checking Accounts

There are a number of banks that are now offering those second chance checking accounts, because they either don’t really worry about it, or they realize that a lot of people end up with a negative Chexsystems record or a Telecheck report unintentionally or because of something they didn’t know. Those people deserve a second chance and they get to have a checking account and a debit card with either the Visa or Mastercard logo.

Of course, it’s best if you don’t end up getting in trouble with either Chexsystems or Telecheck, because it can really be a nightmare. But in case you do end up being reported to one of them, it’s always good to know that you can still open a checking account. It’s not going to be free, and you’ll have a lot more restrictions compared to regular checking accounts, but at least you’ll be able to access basic banking services.

Fresh Start Checking Account: Banking For People With A Negative Chexsystems or Telecheck Record