June 23, 2017

Check your “ChexSystems” report

I recently saw a post on Jay Fleishman’s New York Bankruptcy and Consumer Law Blog where he made a very good point – that is if you are having trouble opening a checking or savings account, you should investigate to see whether Chex Systems has negative information in your file.  Chex Systems is subject to the Fair Credit Reporting Act and derogatory and inaccurate info can be challenged.  Banks use ChexSystems to see if you have bounced any checks – if so, your application for a new bank account can be denied.

Here is the link to getting a ChexSystems report.  If you get your report and it contains accurate but damaging information, you may want to contact the bank involved and settle up your dispute.  If there is negative but inaccurate info in your file, you should dispute the negative entry just like you would a derogatory entry in a credit report.

About Jonathan

Jonathan Ginsberg represents honest, hardworking men and women in the Atlanta area who need personal bankruptcy protection. In practice for over 25 years, Jonathan teaches bankruptcy law and practice at legal continuing education seminars and he is a founding member of the Bankruptcy Law Network. Jonathan lives with his wife and children in Atlanta.

Comments

  1. If a prior debt was eliminated in a Chapter 7 bankruptcy case, does CheckSystems have an obligation to report the debt as discharged? I believe that debtors can be denied access to banking priviledges if they have outstanding bank charges, although discharged, on their credit reports.

  2. People end up on the chexsystems list for a bunch of reasons (including bouncing checks). If you have ever had a dispute with a bank (about past due fees, unauthorized charges, etc.), there’s a chance you might have a negative item on your chexsystems consumer report. It’s best to order your report to find out before finding out when you try to open an account.

  3. guaranteed checking accounts says:

    Many people are often denied access to new bank accounts after being reported to Chexsystems. Those who have this problem should contact Chexystems to find out what was reported. Every effort should be taken to clear the debt. There was a nonprofit program called Get Checking that offered access to new accounts with mainstream banks after all debts with Chexystems were taken care. Participants also had to complete a one day financial literacy course. Unfortuntately, the program seems to be on hold. I suppose they lost their funding?

    Luckily there are other options. There are two banks that will open a checking account regardless of credit or chexsytems. Also, you can open a savings account with ING direct, but you do need to have a checking account in order to open one.

    Hope this helps! =)

  4. Remember, these banks hire “Chexsystems” to find out NEGATIVE information ONLY. This means an agent on the other end of the phone may NOT be telling the whole story.

    I had a series of overdrafts caused one weekend in 2005 by a computer system changeover at Charter One. The matter was resolved. I have had THREE business checking accounts since that time, along with PERSONAL checking accounts and also SAVINGS accounts.

    Today I wanted to go back to one of the banks I had a few years back, that obviously didn’t have an issue before….since they gave me an account. Today, they said they couldn’t give me another business account because of an incident in 2005. Well, this same bank had one of my previous checking accounts AND has a current personal savings account.

    So what was reported by Chexsystems to Comerica? Only the section about the overdrafts (that were the result of Charter One’s computer situation….). No mention that the situation was resolved, which was further down the report.

    Perhaps this is another piece of the puzzle on why banks are failing???

  5. Need my overdraft information from 7 years ago. from a bank I no longer use,and have no records. Would Chexsytems be able to provide me with that information?

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