Looking for how to get off ChexSystems? Then read this post. Apart from seeing a sign on the door of the business or counter many customers don’t have knowledge of ChexSystems, until it is very late. So, what is this Chexsystems and how do they work? What is their significance in your financial system?
Chexsystems is made up of credit unions, financial institutions and a network of banks, it is a reporting agency that helps in maintaining a database of individuals who have knowingly or unknowingly mishandled a savings or checking account. Though most are listed because of uncontrollable situations, some are listed for deceitful activities like passing bad checks on purpose. It is because of these bad apples which make ChexSystems an evil and a significant part of a financial system.
If you have discovered yourself in the database of Chexsystems, you should know few things.
- Thought this may sound ridiculous, you are listed because you have done a mistake. It may have been a small mistake, but it is something to be listed. Closed an account which owes money, unpaid NSF charge etc. There are incidents that people have been reported to this system because of a mistake, these appearances are few and can be cleared up easily.
- You will be listed for five years per reported account or per occurrence. There is no way to get around it and getting off soon is almost impossible. Just like your regular credit report, there will be reporting time and getting out of negative listing is not easy.
- Chexsystems is persistent and ruthless. As cruel as it is, there is a report of lack of help and customer support for getting anything sorted out. So make sure you have a good background and try to maintain good credit history as much as possible.