Finding out you’re listed in ChexSystems can be frustrating, especially when it blocks you from opening a new bank account. Imagine being at the bank, ready to start fresh, only to hear, “We can’t open an account for you.” For many, this response is unexpected and often leaves them without a clear reason why.
If you’re in this situation, checking your ChexSystems report might reveal entries that don’t seem accurate. It could include claims you’ve already resolved or fees that don’t apply to you. This information can impact how banks view your application, even if it doesn’t reflect your actual history.
This guide explains how to dispute entries on your ChexSystems report and what to expect from the process. Taking these steps can help you address any mistakes and move forward with options for accessing essential banking services.
Reviewing Your ChexSystems Report
First, you’ll need to have your ChexSystems report in hand. You can order a copy by mail, fax, phone, or online request—find out how to get your ChexSystems report for more details.
When you receive your report, you’ll see entries for each complaint that banks or credit unions have filed against you. Each entry includes information like:
- Source of information: The bank or credit union that reported the issue.
- Reported name, address, and SSN/ID: These details should match your personal information.
- Driver’s license and RTN: Your driver’s license number and routing transit number associated with the reported incident.
- Account information: The account in question.
- Date reported: The date the complaint was submitted.
- Reported for: A brief description of the incident.
- Closure status and closure date: Whether the issue was resolved and, if so, the date it was closed.
Carefully review this information to check for any inaccuracies that could impact your ability to open accounts.
Common Errors to Watch For
ChexSystems reports aren’t always accurate. Here are common types of errors to look out for:
- Mismatched personal information: Details like your social security number, address, or driver’s license number may not be correct.
- Unknown bank or credit union: Occasionally, you might find a bank or credit union listed that you’ve never dealt with.
- Incidents that didn’t occur: You might see entries for issues you know didn’t happen.
- Unresolved status for closed issues: Sometimes, issues you’ve resolved are mistakenly listed as unresolved.
Banks use this data when deciding to approve accounts, so if anything looks off, it’s worth taking steps to correct it.
How Errors End up in ChexSystems
Errors in ChexSystems reports usually happen for one of two reasons: mistakes made by bank employees or issues related to fraud and identity theft. Here’s how each can affect your report:
Simple Mistakes
Bank employees handle large amounts of data daily, so clerical errors can sometimes slip through. These mistakes might include:
- Incorrect personal details, like a misspelled name or the wrong date for a resolved incident.
- An outdated status on a past issue that’s actually been settled.
- A description error, where the type of infraction recorded doesn’t match what actually happened.
When it’s a simple mistake, reaching out to the bank that reported the information can help clarify and resolve the issue. They may be able to update ChexSystems once you explain the error.
Fraud and Identity Theft
Fraud or identity theft can also lead to false entries in your report. This happens when someone uses your personal information, often without your knowledge, to commit financial fraud. Common scenarios include:
- Stolen checkbooks: If someone took your checkbook and wrote checks that bounced, the bank might have filed a report in your name.
- Data breaches: If your information was exposed in a data breach, an identity thief could have opened accounts or carried out transactions that impacted your record.
If you think fraud might be involved, it’s critical to act quickly to dispute the information and clear your record.
How to Dispute Your ChexSystems Report
If you wish to dispute the information in your report, you have two options:
- Dispute the Source of Information (the bank or credit union that filed the complaint)
- Dispute the matter directly with ChexSystems
Ideally, you should do both. In theory, if you contact ChexSystems, they will go ahead and contact the bank on your behalf. However, anything you can do to facilitate the process should speed it up and help ensure accuracy. After all, you are the one with insights into any mistakes you think the bank may have made.
Steps for Filing Your Dispute with ChexSystems
Once you’ve reviewed your ChexSystems report and identified any errors, it’s time to take action. Follow these steps to ensure each disputed item is clearly documented and properly submitted.
1. Highlight the errors in your ChexSystems report
Your first step is to make it obvious to ChexSystems and the bank what you are disputing on your report. Circle the items in question or use a highlighter to mark them.
Do not send the original to the bank or ChexSystems. Keep it for your records, and send copies instead.
2. Locate the appropriate forms
If you have multiple items on your ChexSystems report that you believe are incorrect, you’ll need to dispute each one individually by preparing and sending separate dispute letters.
ChexSystems provides several ways to submit disputes: via fax, mail, or their online form.
- Online Dispute: If submitting online, you’ll need to complete the ChexSystems online dispute form for each incorrect entry.
- Fax or Mail: For fax or mail submissions, use the “Request for Investigation” form, filling out a separate form for each item.
ChexSystems does not accept phone disputes for cases involving fraud or identity theft. However, they provide a phone number, (800) 513-7125, for cases where no supporting documentation is needed. ChexSystems suggests using this number if you only need guidance or if your case doesn’t require documents for verification.
3. Fill out the forms and draft your dispute letters
After choosing to mail, fax, or file your dispute online, complete the appropriate form.
How to Complete the Online Form
For the online form, scroll past the instructions, agree to the Terms and Conditions, and confirm whether you’ve received your Consumer Disclosure Report. After verifying your age, enter your personal details.
In the “Dispute 1: Details” section, fill in the type of information you’re disputing, the source of the dispute (the bank), and the date you found the item on your report. There’s a 2,000-character limit in the dispute box for your explanation, so you may need to keep your letter concise or attach it separately.
Remember to upload your report with the circled or highlighted item, along with any supporting documents. Supported formats include JPG, BMP, PNG, TIF, TXT, RTF, PDF, DOC, and DOCX, with a file size limit of 25 MB.
To dispute additional items, click “Dispute Another Item” to open a new “Dispute 2: Details” form. You can dispute up to 50 items, completing a separate form for each.
How to Complete the Mail/Fax Form
For mail or fax, use the “Request for Investigation” form, similar to the online form. Enter your basic details and the specifics of your dispute in the provided box, with the option to add pages if needed. Attach your dispute letter here.
Need help writing your letter? Scroll down to see an example.
4. Send your documents
Once your forms and documents are ready, it’s time to submit them.
- Online: Enter the security code at the bottom of the form, then click “Submit.”
- Fax: Send your dispute to 602-659-2197.
- Mail: Address your documents to ChexSystems, Attn: Consumer Relations, 7805 Hudson Road, Suite 100, Woodbury, MN, 55125.
Also, be sure to contact the bank that filed the report. Send them a copy of your dispute letter and documentation. Always keep the original documents and send copies.
After submission, allow ChexSystems up to 30 days for a response. If you submit additional documents during the investigation, they may take an extra 15 days to review. Once a decision is made, ChexSystems will mail their response, so verify that the address you provided is correct.
Remember, the bank may follow its own review process and timeline for handling your dispute.
What If No One Responds?
ChexSystems has 30 days in most states to process your dispute (plus an additional 15 if you submit extra information during the investigation). In Maine, the limit is 21 days.
If by chance, ChexSystems fails to respond to you within that allotted timeframe, they are required to delete your record. This is true regardless of whether it is accurate or not.
At that point, you can send a “Demand for Removal” letter. Scroll down, and you will find a sample of a Demand for Removal Letter.
What If You Win the Dispute, But No One Corrects Your File?
You may sometimes encounter a mishap where ChexSystems agrees with you about the dispute. However, when you follow up, you find that the erroneous entry has not been removed.
When that happens, you should submit a “Procedural Request” letter. This is simply a letter that you can use to verify any changes made to your report.
Sample Dispute Letter
Date
ChexSystems, Inc.
7805 Hudson Rd., Ste. 100
Woodbury, MN 55125
Fax: (602) 659-2197
To Whom It May Concern,I recently reviewed my ChexSystems report and discovered an entry from [Bank] dated October 29, 2022, listing [item].
I’ve never had a [item] from [Bank].
I’d like to request that you validate this information by contacting [Bank]. If [Bank] provides you with any documentation connected to [item] with my signature, please send copies of this documentation to me.
If [Bank] cannot furnish this documentation, I request the prompt deletion of [item] from my ChexSystems file.
I also request upon doing so that you provide me with an updated copy of my report.[Your SSN] [Your mailing address]
Sincerely,
[Name] [Signature]
You will need to modify the letter if you have a different issue. For example, if you’ve never had a checking account at the bank. Or maybe you had an issue with the bank but resolved it, but the report does not reflect it. You will also need to send any supporting documentation you wish to submit.
Sample Demand for Removal Letter
Date
ChexSystems, Inc.
7805 Hudson Rd., Ste. 100
Woodbury, MN 55125
Fax: (602) 659-2197To Whom It May Concern,
On October 29, 2022, I sent a letter notifying you of the following error in my ChexSystems report.[Describe the error here]
Thirty days have elapsed since I submitted my initial request. I have received no response from ChexSystems.
Under the Fair Credit Reporting Act, I am now submitting a formal demand that this entry be expunged from my report.
If you do not comply, you will be in violation of the Fair Credit Reporting Act.
Please remove this entry right away, and promptly confirm to me that you have done so. You may reach me at the mailing address I have listed below.
If I receive no confirmation from you within 10 business days, I will be investigating legal avenues of action.[Your SSN] [Your mailing address]
Sincerely,
[Name] [Signature] [If you have a lawyer, CC that person here]
How Hard Is It to Get Out of ChexSystems?
Now you know the basic steps you need to take to dispute your ChexSystems report and attempt to get your file cleared.
You are probably wondering what your chances are of succeeding.
The answer may not be what you are hoping for. It is actually quite challenging to get removed from ChexSystems.
The process can be tedious and involve a lot of back-and-forth, even if you have a relatively simple case to make and the evidence backs you up.
If you do not have a strong case, your odds of getting your name removed from the system are even lower.
What If You Lose Your Dispute?
If you do lose your dispute, there are a few steps you should take.
1. Provide a Consumer Statement
If you can’t remove your name from ChexSystems, you’re allowed to add a Consumer Statement to your report. This note gives you the chance to share your perspective.
To submit a Consumer Statement, fill out the “Request for Consumer Statement” form. You can include one statement per disputed item. This information will be visible to anyone who requests your report, so be cautious about what you share.
In Section 1 of the form, fill out your personal details. In Section 2, list up to three items from your report that your statement applies to. There’s a box for your statement at the bottom, with a 100-word limit (200 words in Maine). Your statement should be original, relevant, and free of profanity. Avoid naming other businesses or individuals.
You can complete the form electronically or by hand and submit it by mail or fax:
Fax: 602-659-2197
Mail: ChexSystems, Inc., Attn: Consumer Relations, 7805 Hudson Road, Suite 100, Woodbury, MN 55125
2. Contact a regulatory organization to file a formal complaint
This is not always applicable. If ChexSystems and the bank you’re dealing with have been following procedure and have made a fair judgment against you, it doesn’t make sense to contact a regulator.
However, if you believe that either party has behaved in unfairly, you can get in touch with a regulatory agency. The regulator may choose to provide arbitration in your case to help resolve the issue.
Hopefully, you kept copies of all documents and communications during your dispute. You are going to need them to make your case to the arbitrating organization.
Here are the regulators you can contact:
- Office of the Comptroller of Currency (OCC): This organization oversees nationally chartered banks.
- Consumer Financial Protection Bureau (CFPB): You can contact this organization regarding any consumer financial institution.
- National Credit Union Administration (NCUA): This organization provides oversight for all nationally chartered credit unions.
- State Attorney General’s Office or State Banking Commission: If the bank in question is state chartered (rather than nationally chartered), you can contact either of these.
- Federal Trade Commission (FTC): The FTC oversees ChexSystems itself, as well as other consumer reporting agencies.
Pick the regulator which is most targeted for your needs and go from there.
3. Take the offending party to court
This is a last resort, and only if you are really desperate. You cannot file a lawsuit against ChexSystems until you have gone through the full dispute process, so always do that first.
Going to court is expensive, so it is something to avoid if you can.
If your case is decided in your favor, you should be awarded $1,000 for every FCRA violation—assuming that you do not settle out of court (which is far more likely). Your ChexSystems record should also be removed.
You can reduce your chances of needing to resort to these steps by following procedure during your dispute. You also need to understand your rights, maintain a paper trail, and provide all the information necessary for ChexSystems to resolve your case.
Additional Notes on ChexSystems Disputes
- If you haven’t yet, familiarize yourself with your rights under the Fair Credit Reporting Act (FCRA).
- Happen to have filed for bankruptcy? If you send a copy of either the filing or your discharge document to ChexSystems, they should remove you from their database.
- Handle your ChexSystems dispute on your own. Do not fall for ChexSystems removal scams. Companies offering to remove you from ChexSystems for a fee are just out to get your money.
What Should You Do If You Suspect Identity Theft?
If identity theft may account for why you are in ChexSystems, you will need to take some additional steps beyond just disputing your report.
You should do the following right away:
- Immediately contact the companies where the fraud took place. You may discover more parties are involved than just the bank.
- Contact any of the three credit bureaus (Equifax, Experian, and TransUnion) and order your credit reports. You do not need to contact them all, as the one you contact will get in touch with the others. You should also place a fraud alert on your reports.
- Contact the FTC and report the theft of your identity.
- File a report with your local police department.
Your next steps should include the following:
- You have the power to close accounts that fraudsters have opened in your name. To do so, contact the fraud departments of the relevant businesses.
- Get charges removed. This is also a matter of contacting fraud departments. You need to explain to them that those charges weren’t yours.
- Contact the credit bureaus to dispute the fraudulent information on your credit reports.
- Strongly consider a credit freeze or extended fraud alert. You need to contact each bureau separately to handle this.
Depending on the specifics, there may be situations where further steps are required. You can read a guide from the FTC on this topic.
What If All the Information In Your Report Is Accurate?
Coming back to the dispute against ChexSystems, there may be cases where lodging a dispute is simply not worth it. If upon reviewing your report you determine that none of the information is inaccurate, contesting it would be a waste of time.
If that is true—or if your dispute fails—do not panic. There are ways you can get back to banking and return to your regular life.
What To Do in the Meantime: Open an Account with a Non-ChexSystems Bank Right Now
You may want to dispute accounts on your ChexSystems report. If you believe you have a shot at getting your name removed, go for it. There is no reason to have false information about you floating around.
But it is important to be realistic. You are up against a challenge. Getting out of the ChexSystems database may take quite a bit of time and effort. And it may not happen at all. Many customers get nowhere by disputing, even if the truth is on their side.
Whether you decide to proceed with your dispute or not, the best thing you can do right now is get back to banking.
That’s right. You don’t need to wait until your ChexSystems file clears to start banking again (which is a good thing, since the information could stay on your file for up to 5 years).
Banks That Don’t Use ChexSystems & Second Change Banking
What you can do right now is open an account with a bank that doesn’t use ChexSystems, or apply for a second chance checking account.
These financial institutions understand that even the most responsible consumers can go through rough patches—and deserve a second chance. They do not use ChexSystems to make determinations about checking account eligibility. With a non-ChexSystems checking account, you can enjoy the convenience of online banking, a debit card for personal use, and more.
