For many, getting listed on ChexSystems is akin to the kiss of death as it relates to any kind of real banking. ChexSystems, owned by Deluxe, is not the judge, executioner, or jury...rather they are the prison in which you will reside for up to 5 years, once they have listed a negative entry about you in their database.

Listings can range from minuscule (cents) all the way up to incredibly large amounts, and typically most people have never even heard of ChexSystems until they end up in that database. Banks report their account holders to ChexSystems for any number of reasons (some fair and some not so fair) and they are ultimately the ones who decide if you stay on the list or not.

Reasons for being listed in ChexSystems include but are not limited to:

Overdrafts on accounts that are not repaid in a timely fashion

Misuse of banking cards

Misrepresentation at time of bank account application

Once a person has been listed in ChexSystems there are very few opportunities for removal. The process to get negative entries removed is almost always arduous and time consuming. And unfortunately, over 90% of US banks utilize the ChexSystems database to verify new accounts, so if you're listed...getting another checking account is next to impossible.

The methods for getting your entry removed from ChexSystems are as follows:

Wait 5 years from the date of report and the entry will automatically fall off

Dispute the entry. ChexSystems acts as a Credit Bureau and if you have been falsely listed you have the legal right to dispute the entry

Call the bank that reported you and get someone there to stop reporting you

While you can get removed from the database, it is rarely easy for anyone. If you can't wait 5 long years, and the bank has told you to stop calling them, then your only hope is to get the entry deleted. You do attempt through their dispute process.

To dispute a negative entry it is imperative you obtain a copy of your ChexSystems report which can be done by going to https://www.consumerdebit.com/consumerinfo/us/en/chexsystems/report/index.htm

Next you'll want to send them a statement in writing clearly indicating your dispute. Make sure you sign the request and mail it (do not phone them) to -

Chex Systems, Inc.
7805 Hudson Road, Suite 100
Woodbury, MN 55125

From there ChexSystems, which is governed by the FCRA (like Credit Bureaus), has up to 45 days to investigate the claim. If ChexSystems cannot verify your entry then they must delete it. If they do not delete your entry they will offer to add a statement to your file...do not ever do that...it's like an admission of guilt. You'd much rather be capable of re-disputing down the line.

While you are fighting ChexSystems you'll want to try to obtain a checking account through alternate means. Youll want to research Non ChexSystems Banks and youll want to find that 10% that dont use them yet. They are incredibly hard to locate for even the most resourceful of researchers...but they do exist and can be found if you know exactly where to look.

In closing, most individuals that find themselves in the ChexSystems database have a few different options for getting themselves de-listed. Due to the amount of time this typically takes, it makes sense to locate Non ChexSystems Banks and establish checking privileges there, at least until your record is cleared.