If your name is on the ChexSystems report you most likely were reported by a previous financial institution were you had a previous saving or checking account and you have an outstanding balance.
What is ChexSystem?
ChexSystems is like a credit reporting system only for financial institutions like banks and credit unions. This system will allow the financial institution to see if you ever had any NSF, negative balance activity, any outstanding debt that are still owed. These items, if left owed, can remain on your report for up to 5 years and prevent you from opening a bank account.
Unfortunately just as with credit reporting most people don’t find out there is an issue until it’s too late. The same rule applies with the ChexSystem as with credit reporting, make sure you get your free annual report so you know what is reporting.
Under the Fair and Accurate Credit Transaction Act (FACTA) amendments to the federal Fair Credit Reporting Act (FCRA), you are entitled to a free copy of your consumer report, at your request, once every 12 months.
How can I get my name off the ChexSystem?
Having your name on the ChexSystem can create financial havoc. Not being able to open an account with a bank or credit union means that you won’t be able to have a checking account or debit card to pay bills. Also you will have to use expensive check cash locations to cash your weekly check.
The easiest way to have your name removed from the ChexSystem is to find out who is reporting you and pay them whatever money is owed. Once this debt is satisfied your name will be removed from the report and you will be able to open an account at any bank or credit union.
For information on how you can increase and protect your credit as well protect all areas of your financial life click this link >>> Financial Protection