Imagine this: you’re at the bank, ready to open a new account, only to hear, “We’re sorry, but we can’t help you due to your ChexSystems report.” Naturally, you ask why, but the employee says they can’t give you specifics.
It’s frustrating not knowing what’s holding you back, especially when you want to fix it. The good news? You can order your ChexSystems report and find out what’s on it. Let’s get into how to do that, but first, let’s talk a bit about ChexSystems basics.
What is ChexSystems?
Most people don’t hear about ChexSystems until it blocks them from opening a bank account. If that’s you, here’s the short answer:
ChexSystems is a reporting service that banks and credit unions use to screen new customers. About 80% of U.S. banks rely on it, flagging customers for issues like unpaid overdrafts, non-sufficient funds, or depositing bad checks. Even a minor mistake in the past can sometimes trigger a ChexSystems record.
To learn more about ChexSystems and how it works, check out our article, “What is ChexSystems?” Otherwise, read on to see how you can view your ChexSystems report.
Why Won’t the Bank Employee Tell You More?
If you’re wondering why the bank employee couldn’t explain your ChexSystems status, it’s not because they didn’t know. Bank employees can see the basic details of your record, but they’re restricted from sharing specifics. This policy is in place to protect your privacy and ensure that all customers are screened fairly.
It can feel frustrating not having answers, especially when you’re ready to resolve any issues. Thankfully, you don’t have to stay in the dark—you can request a copy of your ChexSystems report directly to see exactly what’s affecting your account access.
How You Can Order Your ChexSystems Report Right Now
So say you were turned down for a bank account. Since you cannot expect the bank to tell you the reason, how can you find out what your ChexSystems record says?
As a consumer, you have a right to find out why you are being denied banking services. As such, you can order a ChexSystems report straight from ChexSystems itself. This is referred to as the “FACTA Free Annual Report.”
As the name indicates, you are entitled to receive one copy of this report every year. You are guaranteed this right through the Fair and Accurate Credit Transaction Act (FACTA) amendments to the Federal Fair Credit Reporting Act (FCRA).
You may use any of the following 4 methods:
Here is exactly how to submit your request via each of these channels.
1. Fax
- Print out the “Consumer Request for Disclosure Form”.
- Fill out all the information in the form. This should only take you a few minutes as the form is a single page. Note that if you prefer, you can always fill it out electronically and then print it out.
- Fax the completed form to this number: 602.659.2197.
2. Mail
- Print and fill out the “Consumer Request for Disclosure Form”.
- Mail the completed form to the following address:
Chex Systems, Inc.
Attn: Consumer Relations
7805 Hudson Road, Suite 100
Woodbury, MN 55125
3. Phone
- Call 800.428.9623.
- Provide the requested information through the set of automated voice prompts.
4. Online Request
- Visit the “Consumer Disclosure Request Page” on the ChexSystems website.
- Agree to the Terms and Conditions.
- Answer all questions and fill out all fields on the page.
- Input the security code to prove that you are a human.
- Click on the “Submit” button.
Once your request for your ChexSystems report has been received, it should be sent out to you within five business days through US mail.
Note that it will be sent within that timeframe. It may take you slightly longer to receive it.
Interpreting Your ChexSystems Report
When you get the report, you will see some general information listed on top. After that, there will be (potentially) a number of entries, one for each incident that got you listed in ChexSystems.
You should see the following information in each entry:
- Source of Information – The bank or credit union which reported you to ChexSystems.
- Reported Name – This is your name, as reported by the bank.
- Reported Address – This is your address, as reported by the bank.
- Reported SSN/ID – This is your social security number, as reported by the bank.
- Driver’s License – This is your driver’s license number and state of issue.
- RTN – This is the routing number for the account in question.
- Account – This is the accounting number for the account in question.
- Date Reported – This is the date the institution reported you on.
- Reported For – This is what the institution reported you for, i.e. “Non-Sufficient Funds (NSF) Activity,” “Account Abuse,” etc.
- Closure Status – This indicates whether the issue was resolved favorably or unfavorably or not at all.
- Closure Date – If there was closure, the date of that closure will be listed here.
How to Use This Information
Using this information, you can come to an understanding of why you may have been denied a bank account.
Naturally, certain offenses are worse than others, and the closure status of the issues at hand can have an impact too.
If a bank employee sees that you committed a minor violation and that you paid for it in full, they may open an account for you. However, if you committed fraud and/or never paid back the amount in question, they most likely won’t.
Of course, banks are not always fair. Numerous customers are routinely denied accounts because of small mistakes, like minor overdraft fees that went unpaid.
Disputing Your ChexSystems Report
ChexSystems reports are generally accurate, but mistakes do happen. You might notice errors like accounts you never opened or unpaid fees that don’t belong to you. If that’s the case, you can file a dispute to correct your report and improve your chances of opening a new account.
How to File a Dispute
To start, gather any documents that support your case, such as account statements, proof of payments, or identity verification. Then, submit your dispute directly to ChexSystems using one of the following methods:
- Online: Visit the ChexSystems website to file a dispute electronically.
- Mail: Send your dispute in writing to:
- Chex Systems, Inc.
Attn: Consumer Relations
7805 Hudson Road, Suite 100
Woodbury, MN 55125
- Chex Systems, Inc.
- Phone: Call ChexSystems at 800-513-7125 to initiate the process.
ChexSystems typically has 30 days to investigate your claim. During this period, they may reach out for additional information. Once the investigation is complete, you’ll receive an updated report with any corrected information.
Dispute Checklist
To make the process smoother, here’s a quick checklist of documents and information you’ll need:
- Identity verification: A copy of your driver’s license or passport
- Social Security verification: A copy of your Social Security card
- Relevant account statements: Proof of any transactions or payments related to the disputed item
- Written statement: A brief description of the error and any supporting details
Special Steps for Identity Theft
If you suspect identity theft, take these additional steps to protect yourself:
- Contact ChexSystems to flag your account for potential fraud.
- Notify the major credit bureaus (Experian, TransUnion, and Equifax) to place a fraud alert on your credit file.
- File a report with the FTC at identitytheft.gov to create an official record of the theft.
- Consider freezing your credit reports to prevent any new accounts from being opened in your name without your approval.
By following these steps, you can dispute errors and protect yourself from further issues if identity theft is involved.
Tips for Improving Your ChexSystems Record
If your ChexSystems record has negative marks, there are steps you can take to improve it over time. Building a better record can open up more banking options in the future. Here are some practical steps to help you get started:
- Pay off any outstanding fees: Contact the bank or credit union that reported you and settle any unpaid overdrafts or fees. Clearing these balances can help improve your standing with ChexSystems.
- Monitor your ChexSystems report annually: Like a credit report, your ChexSystems report should be checked for errors or new entries. Reviewing it each year ensures you catch any mistakes early.
- Practice responsible banking: If you open an account with a non-ChexSystems bank or a second-chance account, keep it in good standing. Avoid overdrafts, maintain positive balances, and use the account responsibly.
- Consider opening a second-chance account: Many banks offer second chance checking accounts specifically designed for people with a history in ChexSystems. These accounts provide a chance to rebuild your banking history and, over time, may help you qualify for traditional accounts.
Consistent, positive banking habits can strengthen your ChexSystems record. With time, this approach may improve your eligibility with a wider range of banks.
What Can You Do in the Meantime?
While you’re working on improving your ChexSystems record, there are still banking options available. Many banks and credit unions offer accounts for people with a ChexSystems record or those with bad credit. Some institutions provide bank accounts for bad credit that include essential features like online bill pay, debit card access, and direct deposits.
You can also explore banks that don’t use ChexSystems if you need a fresh start. These banks can give you a chance to manage your finances effectively without worrying about ChexSystems. Over time, consistent and responsible banking habits may help you qualify for a wider range of accounts.
Final Thoughts
Dealing with a ChexSystems record can feel overwhelming, but there are steps you can take to improve your situation. Ordering your report, disputing any errors, and considering second-chance accounts or banks that don’t use ChexSystems are all proactive ways to get back on track. With time, consistent banking habits can open up more options for you.
Remember, having a plan can make all the difference. Whether you’re looking to clear up your record or find an alternative banking option, there’s a path forward. Taking these steps can help you get the financial fresh start you need.
