ChexSystems Report

Can information on a ChexSystems report be removed? Find out more about specific process that the consumer must follow.

ChexSystems Report

Most American consumers old enough to open a bank account will find they are the subject of a Chexsystems report when they make an attempt to open the account. Banks and other financial institutions use this account verification and reporting service to identify high risk consumers who have a history of poor account management or fraudulent account activity. What happens if the report provided contains errors and mistakes though? Does the consumer have any recourse?

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By Kelly Scott
Updated: Jan 14, 2022

Negative Items

It is possible to get mistaken or inaccurate items on the report removed but there is a specific process that the consumer must follow. Another possibility if the entry can not be removed is the inclusion of a statement from the consumer in the file. If an entry is believed to be wrong or outdated then the consumer will need to dispute the entry and state why the entry is not accurate and up to date. Sending copies of any proof can be very helpful in having mistaken entries either corrected or removed.

Consumer Dispute

When a consumer disputes an entry on the report then Chexsystems must investigate and determine the accuracy of the entry within the time period specified by law. The agency must notify the consumer of the investigation results, any action taken on the report, and a new copy of the corrected report if the entry was corrected or removed.

Investigation Process

If the results of the investigation are not satisfactory to the consumer then the consumer has a right to add a statement to the file, noting the dispute facts and any reasons why the entry should not be considered. This statement must be made available with the rest of the entry information. If an entry shows an overdraft or unpaid balance and the amount owed was paid in full then the institution reporting the original delinquency is responsible to update this information.

Chexsystems report entries can be removed if the entry is incorrect or if the wrong consumer is identified. The verification system uses the social security and drivers license number of the consumer to track accounts and prevent any crossed information, but identity theft and identity fraud has been on the rise in recent years.

Rooting for ya,
Kelly Scott