How to Opt Out of ChexSystems

ChexSystems is a consumer reporting agency that most people have never heard of until a bank denies them a new checking or savings account. Unlike the traditional credit bureaus that track credit cards and loans, ChexSystems specifically tracks your banking history, including bounced checks, overdrafts, involuntary account closures, and suspected fraud. This data follows you for up to five years and can make it difficult or impossible to open new bank accounts. Here is how to take control of your ChexSystems data.

What Is ChexSystems?

ChexSystems, Inc. is a nationwide specialty consumer reporting agency owned by Fidelity National Information Services (FIS). Over 80% of banks and credit unions in the United States use ChexSystems to screen applicants before opening new deposit accounts.

ChexSystems collects and reports:

• Account closures: Banks report accounts that were closed involuntarily due to overdrafts, unpaid fees, or other issues
• Bounced checks: Returned checks due to insufficient funds
• Overdraft history: Patterns of account overdrafts
• Suspected fraud: Any fraud-related activity flagged by member institutions
• Account abuse: Misuse of accounts as reported by banks
• Inquiries: Records of which banks have pulled your ChexSystems report

Negative records remain on your ChexSystems report for five years from the date they were reported, regardless of whether you have resolved the underlying issue.

Step 1: Opt Out of Pre-Screened Solicitations

ChexSystems, like credit bureaus, sells lists of consumers to banks for pre-approved account offers. You can stop these solicitations:

1. Online: Visit chexsystems.com and navigate to their opt-out page to submit your request electronically.
2. By phone: Call 877-678-6885 to opt out of pre-screened solicitations. The phone opt-out lasts 5 years.
3. Permanent opt-out by mail: Download the Permanent Opt Out Election Form from the ChexSystems website, complete it, sign it, and mail it in for a permanent removal from solicitation lists.

Step 2: Place a Security Freeze

A security freeze on your ChexSystems file prevents new inquiries from being run against your banking history without your explicit authorization. This is an important step for preventing identity thieves from opening bank accounts in your name.

• Online: Visit the ChexSystems website and follow the security freeze instructions
• By phone: Call 877-678-6885
• By mail: Send a written freeze request to ChexSystems, Inc., 7805 Hudson Road, Suite 100, Woodbury, MN 55125

Include your full name, current and previous addresses (for the past five years), Social Security number, date of birth, and a copy of a government-issued photo ID. The freeze is free under federal law.

When you need to open a new bank account, you can temporarily lift the freeze by contacting ChexSystems using the PIN they provide when the freeze is placed.

Step 3: Request Your Free ChexSystems Report

Under the FCRA, you are entitled to one free ChexSystems consumer disclosure report every 12 months. Reviewing your report is essential for understanding what banks see when you apply for an account.

1. Online: Visit chexsystems.com and navigate to the consumer disclosure section to request your report.
2. By mail: Send a written request to ChexSystems at the Woodbury, Minnesota address listed above.

Your report will show all reported negative items, the institutions that reported them, the dates of the reports, and a record of who has inquired about your ChexSystems file.

Step 4: Dispute Inaccurate Information

If your ChexSystems report contains errors, you have the right to dispute them. Common issues include:

• Accounts that were closed due to bank error rather than customer fault
• Debts that have already been paid or settled but are still showing as unresolved
• Fraudulent accounts opened by identity thieves
• Duplicate entries for the same incident

To file a dispute:

1. Online: Use the dispute process available on the ChexSystems website
2. By mail: Write to ChexSystems at 7805 Hudson Road, Suite 100, Woodbury, MN 55125, identifying each item you dispute and providing supporting documentation

ChexSystems has 30 days to investigate and respond to your dispute. If the reporting bank cannot verify the information, ChexSystems must remove it.

What If You Have a Negative ChexSystems Record?

If you have legitimate negative items on your ChexSystems report and have been denied a bank account, you have several options:

• Pay outstanding debts: Contact the reporting bank to settle any unpaid balances. While the record will still appear, some banks view settled debts more favorably.
• Add a consumer statement: You can add a 100-word personal statement to your ChexSystems file explaining the circumstances of any negative item.
• Apply at non-ChexSystems banks: Some banks and credit unions do not use ChexSystems. Online banks are often more flexible with applicants who have ChexSystems records.
• Open a second-chance account: Many banks offer second-chance checking accounts designed specifically for consumers with ChexSystems records. These accounts may have monthly fees or limitations but can help you rebuild your banking history.

Key Things to Remember

• Negative records last five years. Items automatically fall off your report after five years from the reporting date.
• Opting out stops marketing, not reporting. Banks can still report negative activity and check your ChexSystems file when you apply for an account.
• A freeze prevents new inquiries. It does not remove existing negative records from your file.
• You can request your report even with no issues. It is wise to check periodically for signs of identity theft, such as bank accounts you never opened.

Your banking data is just one part of your broader personal information profile. While ChexSystems tracks your banking history, dozens of other data brokers and people-search sites expose your name, address, phone number, and more to anyone who searches for you. PrivacyOn monitors and removes your information from over 100 data brokers, providing a comprehensive layer of protection that complements the steps you take directly with agencies like ChexSystems.