How to Dispute Items on Your ChexSystems Report

Most people are all-too-aware of their credit reports and scores offered by the major credit reporting bureaus, which many lenders use to determine whether they want to give you a loan and at what interest rate. But one credit reporting agency you may not have heard of is ChexSystems, which monitors your banking activity. About 80 percent of banks report bounced checks or other negative activity to ChexSystems, and you may not realize you've been reported until you're denied a new bank account. Luckily, there is a way to dispute negative ChexSystems entries, whether you're the responsible party or not.

Instructions

Dispute an entry on your ChexSystems report

1

Download your ChexSystems report. As a credit reporting bureau, ChexSystems is required by the federal Fair Credit Reporting Act to provide you with a copy of your report once a year. If you've been denied a checking or savings account at a bank, visit the ChexSystems site and request your report (see Resources below). It's a simple form, but it does require your social security number.

2

Look through your report for any negative marks. This should be relatively easy, since unlike a regular credit report which lists all activity, negative and positive, your ChexSystems report only lists negative activity.

3

Contact the agency that reported the negative incident. The ChexSystems report will have the name, phone number and address of the company that reported you to ChexSystems, along with a vague reason for the negative entry. Call that agency and find out exactly why you were reported to ChexSystems, and ask if they would be willing to retract the entry. Be ready to show them copies of old bank statements to prove you were in good standing.

4

Do what your banking institution asks. Some banks and agencies will be willing to retract your ChexSystems entry if you agree to repay them debts owed and ask nicely. Even if the price seems high, you may want to pay them, as getting your ChexSystem entry removed will make future banking much easier. Be sure to ask for a letter verifying that you paid your debt so you have proof to show other lenders.

5

Don't give up. If all else fails, you still have options. If your former bank or a collection agency refuses to remove the negative entry it placed on your ChexSystems report, you will still be able to bank, but your options may be limited. Search around for second chance banks, or for credit unions, which often don't use ChexSystems services. Sometimes financial institutions may let you open a savings account, but not a checking account, and this can be a good option for those who do not need constant access to their money.