subject: How I Beat Chexsystems And You Can Too [print this page] Although chexsystems may have declined some of you may have for a checking account in the past due to a ChexSystems report, today I want to share a personal story about how I beat chexsystems. There's a catch though so if you have a bad history of mismanaging bank accounts, this solution might not be the silver bullet you're looking for.
My First And Only ChexSystems Report
In 2007 I applied for a home equity line of credit at Bank of America. When my credit check came back I learned about a chexsystems report that claimed I has an outstanding debt with a bank dating back to 2003. The exact wording about what I was reported for was "ACCOUNT ABUSE".
That really ticked me off because I knew it was inaccurate. Bank of America wanted the matter cleared up. If it was going to get fixed I was the only one who could do it.
In 2003 my bank accounts were with Marketplace Bank. When I was hired at Bank of America, I closed all my Marketplace accounts. One mistake I made was I forgot to turn off an auto bill pay debit. The next time that bill came due they hit my Marketplace Bank account and guess what? There's no money. So Marketplace Bank slapped me with a $20 fee.
Bank Closure Complicates Matters
Not too long after that, Marketplace Bank went out of business. When that happened, the bank sent me a notice that I my account (the one I closed) had a negative $20 balance and then another $9.04 had been added on for interest. I paid the $29.04 to end the matter, or so I thought.
Fast forward to 2007 and out of the blue this thing rears its ugly head again. Despite having paid off the $29.04, Marketplace Bank still reported the account to chexsystems. The bank had been out of business for years by then so there was no help available through that channel. Instead, I had to deal with chexsystems head on.
Step 1 Of My ChexSystems Dispute
The first thing I had to do was print out and complete a consumer request for reinvestigation form off of the chexsystems website. It is a simple one page form where you can plead your case by writing a detailed explanation about your dispute. You are encouraged to attach copies of supporting documents. In my case, I attached a copy of my final Marketplace Bank statement showing the $29.04 being paid off.
Step 2 Confirmation of My ChexSystems Dispute
Within 3 weeks of submitting a consumer request for reinvestigation form, chexsystems mailed me an acknowledgment letter. This generic letter simply confirmed that they received my documentation and that it had been forwarded to the appropriate personnel for handling.
Step 3 Resolution of My ChexSystems Dispute
Once chexsystems researched the matter they mailed me a second letter that the reinvestigation was complete. Based on their research, chexsystems cleared the Marketplace Bank report from my consumer file. In addition, the letter reminded me of my right (under the Fair Credit Reporting Act) to have notification sent to any person I designate who had received the erroneous chexsystems report within the past year.
Now you can see how to beat chexsystems and prove that it can be done. In my case, the chexsystems report was erroneous. I was fully within my rights to fight it. If you have accurate chexsystems reports about your mishandling of a bank account it will be hard to dispute. If it's accurate why would you?
