Chexsystems Basics

>>Overview of Chexsystems<<
Are you having trouble opening a banking account and keep getting denied? This may be caused by a service called ChexSystems. What is ChexSystems? And what does it have to do with you? Approximately 80% of all banks and credit unions nationwide are members of, or use, this system. ChexSystems is a database of information, provided by financial institutions, containing reports on consumers with account abuse issues in their past. If you have questions Litigo can help.

ChexSystems is used by banks when qualifying a new checking or savings account. The bank may decide to deny the new account if a consumer pulls up on a report, depending on the policies of the bank. If you need help with this contact Litigo. They do not decide whether to approve or deny a new account, they only provide information to the bank. If a report is not available for you, this means you have no negative deposit account history, or you are in good standing with current or previous deposit accounts.

Litigo Inc. is not owned, operated, or affiliated in any way with Chex Systems Inc. or its parent Fidelity National Information Services (also known as FIS). Litigo cannot remove, update, or verify a consumer’s file in the CHEXSYSTEMS database, which is owned and operated by Chex Systems, Inc. Litigo can assist you in filing a dispute against the negative information that banks have reported to Chex Systems. Contact Litigo for assistance 1(877) 432-4818.

>>Getting Added to Chexsystems<<
The most common way to get your name added to ChexSystems occurs when a bank or credit union closes your account, for reasons other than voluntary. You can have your accounts closed due to a negative balance, excessive overdrafts, outstanding balances to the financial institution, or fraudulent activity. Once an account is closed by the bank, the account holder’s name, along with a reason for the closure, is reported. Contact Litigo for help.

Other information gathered by ChexSystems helps financial institutions with detecting possible fraud. Also, ChexSystems tracks the number of times you have applied for a new account in the past 90 days. This information is used to check whether an abnormal number of new accounts were acquired within a short time, which indicates possible check cashing or kiting schemes. If you would like to dispute this information contact Litigo for assistance.

>>Staying Off Chexsystems<<
Being added to ChexSystems can be a frustrating obstacle, but it’s not the end of the world.

The best way to stay off of ChexSystems is to manage your accounts responsibly. Unfortunately for some, hard times or simple mistakes can lead to the mishandling of an account. Just remember, mistakes can be made by anybody. Contact Litigo for the proper guidance.

Once your name is added to their database it can stay there for up to seven years. The problem with having your name on ChexSystems is that most banks will deny your application to open a new account. However, you can be removed from their database by filing dispute. Call Litigo today to find out more information on how.

If your report indicates a debt owed to a bank, the bank may remove the report if the debt is paid back. Paying back debts to the bank does not guarantee the report will be removed. However,
banks are required to mark accounts as paid if a collection amount is paid back. For more answers contact Litigo.

 

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