Managing your money when reported to ChexSystems
You probably know that not paying a credit card or loan will show up on your credit report and make it difficult to obtain credit in the future, but did you know that mismanaging your checking or savings account could negatively affect your banking options? While checking and savings account activity does not appear on your credit report, most financial institutions report misconduct to a database called ChexSystems.
Litigo has referenced the types of activity that may be reported to ChexSystems include:
•Having your account closed involuntarily by a bank or financial institution.
•Bouncing checks. (Financial institutions will typically only report people who fail to pay the outstanding balance or consumers who bounce checks habitually.)
•Overdrawing your account repeatedly.
•Committing an act of fraud, such as altering checks or providing false information about your identity.
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.
Information can stay on your ChexSystems report for five to seven years. If you owe an outstanding debt, paying it does not get it removed from your report early although your report will show that it was paid.
Positive information is generally not reported to ChexSystems. If you have never had any incidents of mismanagement, you probably do not have a ChexSystems report. If you do you can contact Litigo for help.
>>Opening an account with a ChexSystems report<<
When you apply to open a checking or savings account, most financial institutions will run your name in the ChexSystems database to see if you have a report. Some financial institutions may deny everyone who has a ChexSystems report, while others may only deny people with certain types of activity. ChexSystems itself does not approve or deny applications – it merely provides reports to financial institutions. Litigo can help you with issues call today.
If you are denied an account due to having a ChexSystems report first, ask to speak to the branch manager to see if there are any steps you can take to get an account. If you owe money to your previous financial institution, paying it may do the trick. Some financial institutions don’t use their database or have second chance accounts specifically for people with a ChexSystems report. Credit unions in particular are often more forgiving of a ChexSystems report. As a last resort, you may be able to get a prepaid debit card. You can have your paychecks directly deposited onto the card and use it at any place that accepts regular debit cards. Litigo can help you get a new account.
Consumer reporting agencies, are regulated by the Fair Credit Reporting Act and Fair and Accurate Credit Transactions Act. If you have questions about that act contact Litigo
Litigo has listed below are some of the important rights these laws give you:
•You are entitled to a free copy of your ChexSystems report once every 12 months.
•You have a right to dispute errors in your report.
•Access to your report is limited to those that have a legitimate business need to see it.
•If you believe that you have been the victim of identity theft, you can place a security alert or freeze on your report. An alert notifies financial institutions that your identity was stolen and that if someone tries to open an account in your name, they should verify that it is actually you.