If you have been blacklisted by the ChexSystem, you know it’s hard to open a checking account. But there are options.

U.S. banks and credit unions report incidents to ChexSystems to protect themselves and other banks in the future. You get reported to ChexSystems if your account is closed for “cause” (for example, people whose accounts were overdrawn and then closed by their bank, uncollectible overdrafts, etc.).

The service alerts banks to cases of fraud and other abuses. Those who routinely and intentionally write bad checks get their criminal activities recorded in Chex Systems. However, not all negative activities are examples of fraud or intentional misuse. If you had a checking account closed with a negative balance and did not pay the negative balance in time, the bank will report you to ChexSystems.

How long does information remain on the ChexSystem?

Each report submitted to ChexSystem remains on their files for five years, unless the bank or credit union that filed the report requests its removal or Chex System becomes obligated to remove it under applicable law. Also, a reporting member is under no obligation to remove an accurate report of a account mishandling due to payment of money that was owed. However, if a collection amount is reported, the member is obligated to mark the account as paid.

Where can I get a free copy of my ChexSystem report?

Under the Fair and Accurate Credit Transaction Act (FACTA) amendments to the Fair Credit Reporting Act (FCRA), you are entitled to a free copy of your ChexSystems consumer report, at your request, once every 12-months. You can also get a copy of your free credit report once a year.

How can I dispute my ChexSystem report?

You can submit your dispute in writing to:

ChexSystems, Inc.

7805 Hudson Road, Suite 100

Woodbury, MN 55125

800-428-9623, fax at 602-659-2197

ChexSystems will notify you of the results within approximately 30 days and if errors are discovered and they will be rectified immediately. If the reinvestigation does not resolve your dispute, you are entitled to request a brief statement be added to your consumer file outlining the nature of your dispute.

What to do if you are reported to the Chex System

Do not close any other checking accounts or your savings accounts. Keep the balances in the positive
Pay all overdraft fees as soon as possible.
Make good on the checks.
Once you have paid the overdraft fees and satisfied everyone who received a bounced check, have a short explanation inserted into your Chex System file.

How can I get a checking account if I am on the ChexSystem?

Just because you are on the ChexSystem, this does not mean that you will be denied a checking account from your local bank. Sometimes this can be overlooked by the bank to open a new account if they want your business.

Alternatives include a pre-paid debit or credit card from companies like AccountNow, or check out this list of second chance checking account banks from ChexAccount.com. This will help you find a no chex system checking account.