ChexSystems Banking Report Errors

If a bank turned you down for a checking or savings account, there's a good chance ChexSystems is the reason — and if its report is wrong, you shouldn't be locked out of the banking system over it. ChexSystems is the dominant account-screening company banks use to decide whether to let you open an account, and a single inaccurate or outdated entry can get you denied again and again. At The Kim Law Firm, we help people throughout the United States dispute ChexSystems errors and hold the company to the accuracy standards the federal Fair Credit Reporting Act (FCRA) demands.

What is ChexSystems?

ChexSystems is a nationwide specialty consumer reporting agency focused on bank accounts. When you apply to open a checking or savings account, the bank usually pulls a ChexSystems report to see whether you've had accounts closed for unpaid fees or overdrafts, suspected fraud, or other problems. Because most banks rely on it, a ChexSystems record that's inaccurate — or that should have aged off — can quietly leave you 'unbanked,' unable to open an account anywhere.

How to contact ChexSystems

To request your ChexSystems consumer disclosure report, dispute an error, or ask about a file it maintains on you, you can reach them directly:

• Mailing address: Chex Systems, Inc., Attn: Consumer Relations, P.O. Box 583399, Minneapolis, MN 55458
• Phone: 1-800-428-9623
• Online: chexsystems.com

Under the Fair Credit Reporting Act, ChexSystems must investigate a dispute you submit — free of charge — and correct or delete information it cannot verify. Keep copies of everything you send.

ChexSystems’s track record and regulatory scrutiny

Because banks and credit unions rely on ChexSystems to decide whether to open a checking or savings account, an inaccurate ChexSystems record can effectively shut you out of the banking system. Regulators have taken notice: beginning in 2014, the New York Attorney General reached a series of agreements with major banks — including Capital One, JPMorgan Chase, Citibank, and Santander — to reform how they use ChexSystems so that consumers are not denied basic bank accounts over old or minor entries. As a nationwide specialty consumer reporting agency, ChexSystems must also follow the Fair Credit Reporting Act’s requirements to use reasonable procedures for accuracy and to reasonably investigate any dispute you submit. If ChexSystems is reporting inaccurate information that has cost you a bank account, you may be able to hold it accountable under the FCRA. Sources: New York Attorney General and CFPB — ChexSystems.

Common ChexSystems errors we see

• An account you closed in good standing reported as involuntarily closed
• A balance you already paid still showing as owed
• A closure or debt that resulted from identity theft or fraud, not you
• Someone else's banking history mixed into your file
• Old items still reported past the FCRA's time limits (generally five years)
• The same negative item listed more than once

How a ChexSystems error hurts you

Being denied a bank account isn't a minor inconvenience — it can cut you off from direct deposit, force you into costly check-cashing and prepaid services, and follow you from bank to bank. Most people don't even know ChexSystems exists until an application is denied and they're left wondering why.

ChexSystems and the scrutiny of account screening

Account screening decides who gets to participate in the banking system, and regulators have taken its accuracy seriously.

In 2017, the Consumer Financial Protection Bureau ordered JPMorgan Chase to pay a $4.6 million penalty for failures tied to the checking-account-screening system — including not handling the information it reported about consumers with the accuracy the law requires, leaving people wrongly shut out of accounts. That action was against the bank, not ChexSystems, but it shows how closely regulators watch this space and how much damage an inaccurate screening record can do.

ChexSystems itself is a consumer reporting agency bound by the FCRA — which means it has to follow reasonable procedures for accuracy and fix what it can't verify when you dispute it.

Your rights under the Fair Credit Reporting Act

The FCRA covers ChexSystems just like it covers the big credit bureaus. You're entitled to a free copy of your ChexSystems report, and if you dispute an error, ChexSystems must reinvestigate — generally within 30 days — and correct or delete anything it can't verify. Most negative items can only be reported for about five years. If ChexSystems reports inaccurate information or mishandles your dispute and you're harmed, you can recover actual damages, plus statutory and punitive damages and attorney's fees for willful violations — which is why we can take these cases at no cost to you up front.

How to dispute a ChexSystems report

1. Request your free ChexSystems report so you can see exactly what banks are seeing.
2. Mark every inaccuracy — closures, balances, dates — and gather documents that prove the correct facts.
3. File your dispute in writing with ChexSystems Consumer Relations, 7805 Hudson Road, Suite 100, Woodbury, MN 55125, and keep copies.
4. Give ChexSystems the roughly 30 days it has to investigate and respond.
5. If it 'verifies' an item you know is wrong, or the error keeps you from opening an account, talk to an FCRA attorney.

When ChexSystems leaves an error on your file after a dispute, that failure is frequently the FCRA violation itself — and where we come in.

How The Kim Law Firm helps

From our Philadelphia office, we review your ChexSystems report, pin down where the FCRA was violated, push ChexSystems and the bank that furnished the bad information to correct it, and pursue compensation for the harm of being shut out of the banking system. You pay nothing unless we win.

Denied over a different bank-screening report? We also handle Early Warning Services — and you can see more on our check & bank screening resource page.

Frequently asked questions

How do I get a free ChexSystems report?

ChexSystems must give you a free copy of your report on request. Once you have it, review every entry and dispute anything inaccurate in writing so you can see — and fix — what banks are relying on.

How long does ChexSystems stay on your record?

Most negative items can be reported for about five years. If something older than that is still showing, or an item is inaccurate, you can dispute it and it should be corrected or removed.

How do I dispute a ChexSystems error?

File a written dispute with ChexSystems Consumer Relations, 7805 Hudson Road, Suite 100, Woodbury, MN 55125, with documents proving the correct information. ChexSystems generally has 30 days to investigate and must fix or delete what it can't verify.

Can I sue ChexSystems for an error?

Yes. ChexSystems is a consumer reporting agency under the FCRA. If it fails to follow reasonable procedures for accuracy or doesn't properly investigate your dispute, you may have a claim.

What does it cost to hire you?

Nothing up front. The FCRA shifts attorney's fees to the party that broke the law, so your review is free and you pay only if we recover for you.