Chexsystems is a consumer reporting database that banks use to share information with each other about current or past bank customers whom they believe may represent a credit risk.
Once your name has been reported to Chexsystems, it is very hard to get it removed.
Your name can be reported to Chexsystems for any number of reasons.
In most cases, it is because you still owe money to bank with which you've had a prior relationship.
This could be due, for example, to checking or debit activity you conducted on your account while the account balance was below zero - and then you never paid them back.
If you have been denied a new checking account recently and suspect that the reason for this is that your name has been reported to Chexsystems, you are probably wanting to visit the Chexsystems website to lodge a complaint.
Here are 3 things you should know about Chexsystems: 1.
It is actually very difficult to get your name removed from that database.
Once it is there, they will not remove it unless you can prove it is there by mistake.
2.
If you do try to protest due to the result of an error having been made, you must submit a form to Chexsystems, Inc.
to explain your situation.
It could take weeks to get your name removed.
3.
To allow your name to be removed on its own, you will need to wait 5 years.
Rather than try to protest, it is probably a better use of your time to find a non-Chexsystems bank.
These banks will grant you a checking account while never even referring to Chexsystems even once.
In fact, they will never deny you based upon your standing in that database.