What is the ChexSystems report?
ChexSystems® is a national consumer-reporting agency under the Fair Credit Reporting Act (FCRA) that compiles and maintains files on problems that consumers may have had with checking and savings accounts (e.g., account misuses, fraudulent activity, and unpaid negative balances).
This information shared with ChexSystems by their clients and retained by ChexSystems is stored in a report that's unique to each consumer, which may be shared with financial institutions and other types of companies when you try to open an an account.
Depending on your ChexSystems report, you may be denied an account if the bank sees you as too much of a risk.
At Credit Union of Southern California (CU SoCal), we make opening a checking account easy!
Call 866.287.6225 today to schedule a no-obligation consultation and learn about our
mortgages,
home equity lines of credit,
auto loans,
personal loans,
checking and
savings accounts, and other banking products. As a full-service financial institution, we look forward to helping you with all your banking needs.
How does ChexSystems work?
ChexSystems collects information regarding applications for new checking accounts, checking account openings or closings, and check-writing history (including bounced or returned checks). This information, along with a "risk score", is provided to financial institutions when you apply for a new banking account.
ChexSystems Consumer Score. According to ChexSystems, your ChexSystems Consumer Score is based on information contained in your consumer file. By reviewing the key factors that impact your score, you can gain a better understanding of your score.
ChexSystems Consumer Disclosure. ChexSystems provides all consumer disclosure reports free of charge.
ChexSystems retains the following information in everyone’s report:
- Any banking account closures.
- Any returned (bounced) check retailers and financial institutions have reported about you.
- How many inquiries have been made about you and in what time frames.
- How many check orders you have placed and how often.
When you apply for a bank account the financial institution may check your ChexSystems report to assess the risk of providing you with an account. If you have closed bank accounts due to lack of sufficient funds or have owed money to a financial institution, this information could be in a ChexSystems record that can make it difficult to open a bank account if the issues aren't disputed or resolved.
How to clear up your ChexSystems report
There are several ways you may be able to clear-up your report:
Request your report. According to ChexSystems, Under the Fair Credit Reporting Act (FCRA), you are entitled to a free copy of your consumer disclosure report, upon your request, at a minimum once every 12 months and more frequently under certain conditions. You can request a report to learn what information, if any, is listed in your consumer file at
ChexSystems.
If you have been denied an account and ChexSystems was used in the decision process, this information will help you understand what may have contributed to that decision.
Dispute errors. You have the right to dispute any information contained in your consumer file at ChexSystems.
Ask creditors to update information. If you owe money to a financial institution, the easiest way to clear your report is to pay off the debt and ask the creditor to report that you've paid the debt. When ChexSystems receives an account status update from the source of the information, the report will be updated, but the record will remain on file.
Wait for five years. How long do you stay in ChexSystems? ChexSystems retains records of reported information for a period of five years from the report date unless the source of the information requests its removal or ChexSystems becomes obligated to remove it under applicable law or policy.
FAQs
Can I still get a bank account if I've been denied?
If you have been denied you may ask the bank to reconsider, but first request your ChexSystems report. If you see an error in the information, you can report it to ChexSystems at 800-513-7125. If your report is accurate, you may need to apply for a "second chance account" at a financial institution that offers this type of account.
Is credit score included in ChexSystems?
No, ChexSystems is not linked to credit scores.
How long does a person stay in ChexSystems?
ChexSystems' current practice is to retain record of reported information for a period of
five years from the report date unless the source of the information requests its removal or ChexSystems becomes obligated to remove it under applicable law or policy.
How do I request my ChexSystems report?
Visit the
ChexSystems website and complete the form to request your report.
How often can you get a free copy of your ChexSystems report?
Under the Fair Credit Reporting Act (FCRA), you are entitled to a ChexSystems free report, at your request, once every 12 months. ChexSystems provides all consumer disclosure reports and consumer score reports free of charge.
Do credit unions use ChexSystems?
Yes, many credit unions report negative account activity to
ChexSystems or other consumer reporting agencies.
Do all banks use ChexSystems?
Yes, many banks report negative account activity to
ChexSystems or other consumer reporting agencies.
Why savvy consumers choose CU SoCal
For over 60 years CU SoCal has been providing financial services, including mortgages, Home Equity Loans, HELOCs, car loans, personal loans, credit cards, and other banking products, to those who live, work, worship, or attend school in Orange County, Los Angeles County, Riverside County, and San Bernardino County.
Please give us a call today at 866.287.6225 today to schedule a no-obligation loan consultation with a CU SoCal Member Services specialist.