Thousands of consumers in the U.S. live with the frustration of not being able to open a bank account after a previous account closure, often due to a poor history reported to ChexSystems. A checking account is more than a way to pay for goods and services, it provides safety, convenience, and potential cost savings in managing finances.
ChexSystems is used by over 80% of U.S. banks to track consumers’ banking histories, and a negative report from ChexSystems can lead to restricted banking access for five years. Here’s how you can work toward restoring your banking privileges if you’re affected by a ChexSystems report.
ChexSystems is a consumer reporting agency like the credit bureaus, meaning you’re legally entitled to a free copy of your report annually. Under the Fair Credit Reporting Act, you can also dispute any errors or obsolete items in your report.
Some banks and credit unions offer “second chance” accounts, which may provide a fresh start even if you have a negative ChexSystems record.
If your ChexSystems report shows outstanding fees or unpaid obligations, you’ll likely need to address these issues before opening a new account.
Some banks and credit unions do not use ChexSystems for consumer reports, but finding these institutions can be challenging.
If your banking privileges have been suspended, it’s essential to communicate openly with your bank or credit union.
If you’re facing challenges with your ChexSystems report and need personalized guidance, our team is here to help. Call us for one-on-one counseling, it’s free, and we’re ready to assist you on your path to financial recovery.