Banking, ChexSystems,
July 26, 2020

How to Dispute ChexSystems – Step by Step Removal Guide

Gregory Weiss
How to Dispute ChexSystems – Step by Step Removal Guide

If your request for a new checking or a savings account at a bank has been denied, that’s likely due to some negative information or record on your ChexSystems report.

ChexSystems is a consumer reporting agency that tracks consumer’s banking activities and maintains a record. The information is made available to all the financial institutions that are part of the ChexSystems network. It is regulated by the Fair Credit Reporting Act (FCRA).

One thing you need to note here is that the ChexSystems report does not affect your credit score. However, you will be prohibited from opening a bank account or an account with the credit union.

How Does Wrong Information End Up In Your ChexSystems Report?

To your surprise, there might be issues reported in your ChexSystems file that you never thought had committed.

What’s included in your ChexSystems file is usually an excessive overdraft, any insufficient funds (NSF) or accounts that are closed with a negative balance and you still owe the money to the bank. Once such information is reported, it stays in the ChexSystems record for at least five years. Meanwhile, you cannot carry out any banking activity.

Here’s how the wrong information can end up in your ChexSystems report:

Human Errors

Bank employees have to deal with a lot of information on a daily basis. Therefore, human errors sometimes occur. This can result in a mistake with your account details or banking procedures.

Another mistake can be regarding the type of infraction you did.

In such situations, you are supposed to get hold of your bank and investigate what actually happened. This might help you get it corrected.

Fraud or Identity Theft

One major possibility is fraud or identity theft. Someone else might be using your personal information, pretending to be you and carrying out some banking activities under your name.

If that is the case, the only solution is to file a dispute and get your ChexSystems report cleared.

Why Is Disputing Errors On Your ChexSystems Report Important?

Disputing errors on your ChexSystems report is important to ensure that no illegal activity is carried out under your name. It is important to save yourself from any legal problems ahead.

Also, you might be in need of a bank account to receive funds, transfer funds or merely save them. In such cases, it is not possible to proceed until you resolve your ChexSystems disputes.

Dispute Process

In order to file a dispute with ChexSystems, you need to go through a long and daunting process. You have to get your report, open the dispute, wait for a period of 30 days and then take further action accordingly.

Here is the step-by-step guide to remove wrong information or entries from your ChexSystems report:

Step 1. Getting Your ChexSystems Report

The very first thing you have to do is getting your ChexSystems report if you already haven’t. You can get a copy of your report from the ChexSystems website, ChexSystems.com for free, or you can request it by mail. You can get a free report annually or anytime if the bank has denied your account-opening request in the past 60 days.

When you get the report, you will see a set of entries respective to each complaint against you by your bank or credit union. Each entry comes with information like Reported Name, SSN, RTN (your routing number), Driver’s License, and Account Details as well as why the case was reported and on what date.

Look into the details to make sure they match your personal information. Then, highlight all the issues carefully.

Step 2. Opening the Dispute with ChexSystems

Once you have received your ChexSystems report and have highlighted all the crimes you never committed or any wrong information put in, you are good to open the dispute with ChexSystems. In order to do that, you need to write a dispute letter to ChexSystems on the following address:

ChexSystems, Inc.
Attn: Customer Relations
7805 Hudson Road, Suite 100
Woodbury, MN 55125

Make sure you send the letter through certified mail and request a return receipt. Also, keep copies of every letter you send to put in your file for record.

How to Write a Dispute Letter to ChexSystems?

Now, you must be wondering how to write a dispute letter. Here are some significant points you need to include in the letter to make a good draft:

  • Include your personal information, such as your SSN (Social Security Number), address, and your bank account details.
  • Highlight your issue that you want to dispute as unfounded or inaccurate as well as the dates and institution name mentioned in the report.
  • Cite the relevant section of FRCA to strengthen your claim.
  • Request an immediate investigation.

We have added a sample letter for your reference. You can check this out and see how you can write a dispute letter on your own:

Sample Letter # 1

This letter is for filing the original dispute with ChexSystems.

Your Name
Your Address

ChexSystems, Inc.
Attn: Customer Relations
7805 Hudson Road, Suite 100
Woodbury, MN 55125

Date

Your Consumer ID

To Whom It May Concern,

I recently came across some incorrect information reported by (The Bank’s name) in the ChexSystems file under my Social Security Number (Your SSN). I reviewed the entry from this bank listing a (condition/description of the problem) in (date/month/year).

I insist that I never had any such (the same condition/description mentioned above) with this bank account (account details).

I request you to validate the information provided to you by this bank (bank’s name) and provide me the copies of relevant documentation bearing my signature. If there is no such information or proof available that holds my signature, I ask for this entry to be immediately removed from the ChexSystems file under my SSN.

Please take into account that you have 30 days to carry out the investigation, as per the Fair Credit Reporting Act. I hope you would not like to escalate the matter into small claims court action against you.

Sincerely,
Your name
Your email address

Cc: (Insert your lawyer’s name if you have hired one), Esquire.

Step 3. Following Up On Your Claim

Now you need to wait until you hear back from ChexSystems. Usually, the period in which ChexSystems attend such disputes is 30 days.

If you receive a letter back from ChexSystems, saying that the information in your ChexSystems file is valid and legitimate but provided no proving documentation, you are to write another letter following up on your claim.

Request for re-investigation and the copies of supporting documentation. Also, include that you are all prepared to make small claims action against them in court.

Sample Letter # 2

Here’s a sample letter for requesting re-investigation and documentation if ChexSystems declares your claim as inappropriate.

Your Name
Your Address

ChexSystems, Inc.
Attn: Customer Relations
7805 Hudson Road, Suite 100
Woodbury, MN 55125

Date

Your Consumer ID

To Whom It May Concern,

I am writing this letter in your response to my recent claim that (name of the bank) has reported wrong information regarding my account activity (mention the condition against you). Now, as you declare that the bank (name of the bank) has provided correct report, I have not received copies of any documentation that holds my signature.

Additionally, as you have failed to provide a viable evidence, I request you to look into the matter again. Be aware that I am offering a final chance to clear up this matter. The listed item is inaccurate and presents an error in your listing.

If you fail to comply with federal regulations of FCRA, be known that they are investigated by the Federal Trade Commission. If you continue in non-compliance, I am legally eligible of filing a complaint with FTC and state’s (mention your state) Attorney General Office.

The small claims action on my behalf will be seeking $5000 as a result of following damage done to me:

  1. Defamation
  2. Violation of FCRA
  3. Negligence of ChexSystems regarding the investigation

I hope you do not let the matter go to that extent.

Sincerely,
Your name
Your email address

Cc: (Insert your lawyer’s name if you have hired one), Esquire.

Step 4. What If You Get No Response From ChexSystems?

If 30 days have elapsed and you haven’t received any response letter from ChexSystems, send a warning letter for investigation. The letter should give them a final notice to delete the wrong information against your SSN. Mention that this irresponsible and irresponsive behavior is clearly the violation of FCRA.

At the same time, send a letter to the bank that reported such an issue against you. Request for the original proof and if they do not find so, ask them to remove such allegations against you by contacting the related financial institutions and clear your ChexSystems record. You can also send this letter to the bank right when you sent the first letter to ChexSystems.

Sample Letter # 3

Write if you get no response from ChexSystems in 30 days.

Your Name
Your Address

ChexSystems, Inc.
Attn: Customer Relations
7805 Hudson Road, Suite 100
Woodbury, MN 55125

Date

Your Consumer ID

To Whom It May Concern,

On (date), I sent you a letter notifying the mention of incorrect information present in my ChexSystems report by a bank (name of the bank) regarding (describe the reported issue against you).

It’s been 30 days since I wrote my initial request and submitted you for an investigation. Until now, I have received no response letter from ChexSystems. Under the Fair Credit Reporting Act, I am submitting a formal request for the investigation, again. Accordingly, you are supposed to delete this entry (entry’s description) from my ChexSystems file.

Please note that non-compliance to provide me the investigation results and documentation that acts as a piece of viable evidence to the claim made by the bank (name of the bank) will be a direct violation of FCRA on your side.

I request you to remove the inaccurate entry right away or else, I shall be eligible to take the matter to legal avenues such as the Federal Trade Commission (FTC) and Attorney’s office under law.

You have 15 business days from the date of this letter to investigate and contact me with viable proof. If you fail to do so, I shall seek $5000 as a result of following damage done to me:

  1. Defamation
  2. Violation of FCRA
  3. Negligence of ChexSystems regarding the investigation

I hope you do not let the matter go to that extent.

Sincerely,
Your name
Your email address

Cc: (Insert your lawyer’s name if you have hired one), Esquire.

Sample Letter # 4

Send this letter to the bank to verify the issue reported against you and provide you with original proof.

Date

Your Name
Your Address

Name of the Bank
Address of the Bank

Re: Account # (Your account #)

To Whom It May Concern,

This formal notice takes into account your disputed claim of (mention the reported issue) against account # (mention your account #).

As per the Fair Credit Reporting Act, I request the validation of the claim you made. Please provide me with complete documentation that justifies your claim. Make sure any contractual obligation you have as evidence bears my signature.

Please note that any false claim made by your company against me is a clear violation of FCRA. If you cannot validate the claim, you must delete all such allegations right away. If you fail to comply, I am all allowed to take this matter to legal avenues.

Sincerely,
Your name
SSN
Your email address

Cc: (Insert your lawyer’s name if you have hired one), Esquire.

If the bank or ChexSystems fail to provide any proof and do not clear the entries either, you are supposed to consult a legal advisor to explore further options with the file of certified mails and requested return receipts you have in the record.

Final Thoughts

Getting out of ChexSystems is not easy. The process is tough and complex. If you have multiple errors in your ChexSystems report, you need to file a separate dispute for each such claim. When you dispute a claim, the bank and ChexSystems are required to address that. If they do not, they are in violation of FCRA.

While you take the matter to legal proceedings, you can open a bank account at non-ChexSystems banks and a second chance checking account to continue with your financial obligations.

Continue reading