Consumer Rights Concerning Chexsystems Reports

ChexSystems is a national consumer reporting agency under the federal Fair Credit Reporting Act.

Chexsystems reports can follow a consumer around for up to 5 years, and these reports can ultimately determine whether or not the consumer can open a bank account. Because this service is classified as a consumer credit reporting agency the good news is that consumers do have some rights under the laws. Any information that is disputed by the consumer must be investigated and verified, or removed from the report completely. These steps must be taken within 30 days of the agency receiving the dispute information, and even sooner in some states.

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By Kelly Scott
Updated: Jan 14, 2022

Fair Credit Reporting Act

Another right that consumers have is the right to opt out of any pre-screened credit offers. Consumers who choose to opt out do not allow their file to be released to companies offering services or products. The Fair Credit Reporting Act allows credit reporting agencies to provide a list of consumer names and addresses for these offers unless the consumer specifically opts out.

Consumer Statements

One of the consumer rights with Chexsystems reports concerns the right of the consumer to add a statement to the file regarding a negative entry. Any disputed items that are not removed must include a statement if the consumer provides one. This statement should be brief and to the point, and it should outline the dispute between the consumer and the financial institution. The agency must include this statement to anyone who requests the file on the consumer.

Legal Restrictions

The consumer rights in place with Chexsystems are the same rights that consumers have with any other credit reporting agency. Federal and state laws outline all of the rights in place to protect consumers when information is retained or provided by a credit reporting agency.

Rooting for ya,
Kelly Scott