Reported information usually is removed from your ChexSystems file after five years. Until then, you might be able to open a second-chance checking account. These accounts are designed for people who have a record with consumer reporting agencies such as ChexSystems.
In odd cases, your account may be frozen due to suspicion of the more serious crime of fraud. If you are just flagged, you won't incur a suspended or closed account status until proven to be fraudulent. Fraud-based freezing, however, may require legal disputes before any judgment can be made.
But if you have negative items on a ChexSystems report that could cause a bank to decline your account application, you can expect that information to stay on your report for up to five years.
Generally, negative information remains on ChexSystems and/or Early Warning Services (EWS) consumer reports for five years. Under the Fair Credit Reporting Act, certain negative information may be reported for up to seven years.
How long do you stay on ChexSystems? Usually five years. Although federal regulations allow ChexSystems to keep records for up to seven years, the agency keeps them for five.
In most cases, this entails paying the amount you missed and any interest owed on the money. Whether you bounced a check and did not cover the amount and fees or did not pay a loan or credit card bill, you must resolve the issue with the bank, card issuer, or loan officer who loaned you the money.
You might think that anyone can open a bank account, but you actually have to apply for a bank account at all financial institutions. You can be denied an account if you're in debt to another bank because of an overdrawn account or overdraw your account too often.
Reported information usually is removed from your ChexSystems file after five years. Until then, you might be able to open a second-chance checking account. These accounts are designed for people who have a record with consumer reporting agencies such as ChexSystems.
To be “blacklisted” by ChexSystems effectively means that you have a very poor ChexSystems score. Due to a history of overdrafts, bounced checks, etc., your score is low enough that banks considering you for a standard checking account will likely deny you based on your risk profile.
Can you get a bank account after being blacklisted? You may open a “second chance” account, which is designed for those with a poor banking history. Alternatively, you could search for a bank that does not make decisions regarding customer accounts based on ChexSystems reports. Expired fees and debt must be repaid.
Normally, there is a temporary hold on the account while the problems are investigated. If fraud against you is determined, the bank will take care of it. If fraud BY you is determined, then your accounts are permanent frozen and you aren't allowed to make any new ones. They can do that.
Your bank account can be frozen if a creditor or debt collector has a court judgment against you. It can also be frozen if the bank suspects unauthorized, irregular, or unlawful activities, such as those involved with money laundering, identity theft, counterfeit or stolen checks, or other financial crimes.
The report is done simply to help prevent fraud and money laundering. You have nothing to lose sleep over so long as you are not doing anything illegal. Banks are required to report when customers deposit more than $10,000 in cash at once. A Currency Transaction Report must be filled out and sent to the IRS and FinCEN.
Banks must report cash deposits of more than $10,000 to the federal government. The deposit-reporting requirement is designed to combat money laundering and terrorism. Companies and other businesses generally must file an IRS Form 8300 for bank deposits exceeding $10,000.
If you dispute the completeness or accuracy of the information in your consumer file, you have the right to submit a dispute directly to the source of the information. However, if you prefer, ChexSystems® will contact the source on your behalf to initiate a reinvestigation.
Reports. Under the Fair Credit Reporting Act (FCRA), you are entitled to a free copy of your consumer disclosure report, at your request, once every 12 months. ChexSystems provides all consumer disclosure reports and consumer score reports free of charge.
If you've ever had issues with a deposit account, such as a bounced or returned check, it's possible that you might have a ChexSystems profile. While your ChexSystems history doesn't directly affect your FICO credit scores, it can have an impact on your ability to open new bank accounts.
Pay off your balances
If there are outstanding balances listed on your ChexSystems report, paying them off can help clear your report. To pay down your debt, first add up the total amount owed to determine if you can pay it off all at once. If you can't do this, decide which debts to tackle first.
Pay Off Outstanding Debts To Banks: If your ChexSystems report includes legitimate notations for unpaid negative balances on previous accounts, pay these off — or at least make a payment arrangement — and request that your bank update the payment status in ChexSystems when the debt is settled.
To place, lift or remove a security freeze for a Protected Consumer, please submit your request in writing and provide sufficient proof of authority and sufficient proof of identity. Security freeze requests submitted to Chex Systems, Inc. will be applied only to your ChexSystems consumer report.
Such negative activities that show up on your report and hurt your approval chances include bouncing checks, leaving an overdraft balance unpaid, abusing a debit card or applying for too many accounts in a short period of time, according to credit bureau Experian.
A second-chance checking account is an account where the bank or credit union doesn't examine your ChexSystems or Early Warning Services report when deciding whether to approve your application.