Credit Repair Program -- Step 8.
Bank Accounts / ChexSystems®
ChexSystems® is a national database containing the names of those who have mishandled their bank and credit union checking / savings accounts in one way or another. Typically, financial institutions report those who habitually bounce checks, overdraw their accounts, or leave the bank / credit union holding the bag in one way or another. Information reported to ChexSystems® remains in the database for a period of not more than five years.
When you go to a bank and sign-up for a new checking account, your name is run through ChexSystems®; however, if your name is in the system, this does not necessarily mean that your new account will be declined. It depends on the individual policies of a particular bank as to whether or not you will be turned down for a checking / savings account.
Over 80 percent of all banks and credit unions are members of Chexsystems®, so it is almost impossible to find a bank that doesn't subscribe to the network. More and more financial institutions are subscribing to the network every day, so the best way to get your credit back on trek is to face the problem head on and try to get your name removed from the ChexSystems® database and your credit report.
How do you get your name removed from the database? There are two ways you can do this.
Method 1: Pay whatever it is you owe your former banker, but with the stipulation that your name will be removed from the system and any negative notations removed from your credit report. You need to get a signed and dated written agreement from the bank / credit union that this will be done shortly after you pay what you owe them. Don't pay them until you get the signed agreement.
Note -- Paying this debt will not improve your credit rating unless you get the banker to agree to remove the negative notations on your credit report.
Method 2: Dispute the accuracy of the information being reported. Information Chexsystems® reports to your credit report is governed by the Fair Credit Reporting Act. This means you have the right to dispute the information being reported about you. If it is inaccurate, it must be corrected or deleted. If the information cannot be verified, it must be deleted.
It isn't difficult to dispute the information since Chexsystems® offers an online dispute form at their website (www.chexsystems.com). You can also order a copy of a report from them and a copy of your credit report at their website. You might be able to obtain a free copy if you live in a certain state or meet one of their conditions to qualify for a free report. All of the information about ordering a report from them and disputing the information can be found at their website -- www.chexsystems.com. They also offer another website -- www.chexhelp.com -- that provides more information about getting your name removed from their system.
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