How to Get Out of ChexSystems in 4 Simple Steps

Getting denied a bank account is frustrating, especially when you’re not sure why. In many cases, it’s because of a ChexSystems report. This consumer reporting agency tracks banking history, flagging issues like unpaid fees, excessive overdrafts, or accounts closed with balances owed.

While these records can make it harder to open a new account, there’s good news: you can take steps to fix your ChexSystems record and regain access to banking services.

This guide will walk you through practical, actionable steps to address issues on your report so you can move forward with confidence.

How long does it take to get out of ChexSystems?

Once reported, those negative items may remain on your ChexSystems report for up to five years. This can make it difficult for you to open an account with most financial institutions.

Luckily, there are ways to get out of ChexSystems. Follow this step-by-step guide to dispute your ChexSystems report and get back to being bankable.

How to Dispute Errors on Your ChexSystems Report

If you think the information contained in your ChexSystems report is inaccurate or even “questionable,” you have the right to dispute it. So, make sure to check for errors or any signs of identity theft.

Once you open a ChexSystems dispute, ChexSystems and the relevant bank must be able to prove its accuracy. Otherwise, ChexSystems must remove the negative information from your ChexSystems report.

However, just because you paid all the money owed to the bank on an account does not mean the bank or ChexSystems must remove the negative mark. The report is intended to be a reflection of your banking history, not your current situation.

What Constitutes Acceptable Proof

ChexSystems can provide several forms of acceptable proof, including a copy of the canceled check or a copy of the original banking contract you signed when you opened the bank account. If they cannot provide proof, the relevant information must be removed from your report.

Still, the ChexSystems dispute process can be complicated if you don’t know what you’re doing. That’s why we’ve created a guide, along with dispute letter templates, to help you glide through the process as quickly and easily as possible.

You can use the information provided to meet your personal situation, since no financial problem has a one-size-fits-all solution. If you need legal advice, contact an attorney with specific experience in this area.

Once you’ve started the ChexSystems removal process, you can potentially have erroneous or unproven information permanently removed from your ChexSystems report. From there, you should be able to open a bank account again without any problems.

Step 1: Get Your ChexSystems Report

You are legally entitled to a free ChexSystems report every 12 months. You are also entitled to a free credit report anytime a bank or credit union has denied you banking services in the past 60 days due to information in ChexSystems.

So, if you haven’t already, obtain a free copy of your ChexSystems report from the ChexSystems website.

You can also request a credit report by calling their automated voice messaging system toll-free at (800) 428-9623.

If you prefer to contact ChexSystems by mail, you can write them at:

Chex Systems, Inc.
Attn: Consumer Relations
7805 Hudson Road, Suite 100
Woodbury, MN 55125

Once you have your ChexSystems report in hand, review the information carefully to see if you can find any inaccurate or questionable information listed.

Step 2: Submit a Dispute with ChexSystems

Once you have your ChexSystems report, reference the information you wish to challenge using our sample dispute letter, ChexSystems Dispute Letter 1.

You must submit your dispute online or by mail. If you choose to mail it, submit your dispute letter via certified mail with return receipt requested. Keep a copy on file for your records. This simple step provides proof of the date that your dispute was received.

Under the Fair Credit Reporting Act (FCRA), ChexSystems has to verify the negative mark within 30 days or delete it from your ChexSystems report.

You can submit your dispute to the same address:

Chex Systems, Inc.
Attn: Consumer Relations
7805 Hudson Road, Suite 100
Woodbury, MN 55125

Step 3: Follow Up on Your Dispute

If you hear back from ChexSystems within the 30-day time frame with a generic confirmation of the negative item, you’ll need to request verification from the original bank as well as ChexSystems.

Send ChexSystems Dispute Letter 2 to request actual copies of documentation from ChexSystems supporting the accuracy of the negative item.

At the same time, send Dispute Letter 4 to the original bank that filed the information with ChexSystems, which adds the burden of responsibility to the bank.

Both dispute letters reference your rights as a consumer under the FCRA and the Fair Debt Collection Practices Act. Remember, you must send these letters via certified mail with return receipt requested, and you should also save copies for your files.

Step 4: Handling No Response from ChexSystems

If you DON’T hear back from ChexSystems within the 30-day time frame, send Dispute Letter 3 to ChexSystems. This gives a firm warning to delete the information since their lack of responsiveness violates the Fair Credit Reporting Act.

In this scenario, you should also send Dispute Letter 4 to the original bank, requesting they send proof of your alleged transgression.

If either ChexSystems or the bank can verify the information on your ChexSystems report, these steps may not remove the negative item from your ChexSystems report for more than a few days.

You may be able to open a checking account when the information is temporarily removed. However, you run the risk of later having your checking account frozen if the bank later performs a ChexSystems sweep of all existing accounts.

This isn’t unheard of and may not be worth the additional risk of temporarily losing access to your funds.

Check Out Our Top Picks for 2025:

Non-ChexSystems Banks
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Legal Steps for ChexSystems Removal

Even if the bank does verify that you failed to bring your checking account to a positive standing, there is one final option that may enable you to get out of ChexSystems. The bank is required by law to report any uniformly disputed information to ChexSystems.

If they do not, they are in violation of the FCRA, and you can sue to have the information removed. So, as long as you sent the letters as instructed above, you should have the proof you need to file a lawsuit and win.

Step 1: Check Your Updated Report After Filing a Dispute

Request your ChexSystems report again at ChexSystems.com exactly 30 days after the bank receives your dispute letter.

Your updated ChexSystems report should have a note stating, “Consumer disputes as per FCRA” or something similar under the disputed account record. If there is no note, the bank has broken the law, and you are within your rights to file suit.

Step 2: Mail a Letter Stating Your Intent to Sue

Send a letter to the bank letting them know that you intend to sue within 30 days due to their failure to comply with the FCRA.

Give them the option to delete all records of the debt and remove you from ChexSystems rather than pursuing the lawsuit. Often, this simple step is all that is required to get the bank to remove the negative information so they can avoid being sued.

Step 3: Handling No Response

If the bank does not respond, you’ll need to take them to small claims court. There’s a filing fee for this, typically around $40. Remember, you are not disputing whether you owe the debt at this point.

You are only suing because the bank has failed to comply with federal law regarding fair credit reporting.

In most cases, the bank will settle, but you should win the suit even if they appear in court. This is because you have proof that they violated the FCRA by not complying with the regulations to place the notice on your ChexSystems record.

How to Fix Accurate Negative Items On Your ChexSystems Report

The tips above focus on getting errors removed from ChexSystems reports or having negative items removed based on technicalities throughout the filing process.

It is still possible to rectify a ChexSystems report, even if everything is accurate and both ChexSystems and the bank or credit union responded to your proof requests exactly as they should have.

If you owe money to any ChexSystems member institutions, do your best to get those paid off. You can even negotiate to pay less than what you owe.

How to Negotiate with Banks to Settle Your ChexSystems Debt

If you owe money to a bank or credit union listed on your ChexSystems report, negotiating a settlement can be a powerful way to clean up your record. With a thoughtful approach, you may be able to reduce the amount you owe, set up a payment plan, or get the negative mark updated to reflect a resolved balance. Here’s how to handle negotiations effectively:

Step 1: Prepare for the Conversation

Before reaching out to the bank, gather all the details about the debt, including:

• The amount owed.
• The dates and circumstances that led to the issue.
• Any relevant documentation, such as account statements or letters from the bank.

Also, determine what you can realistically afford to pay. Many banks are open to settling for less than the full balance, especially if the debt is older or has already been charged off.

Step 2: Reach Out with a Clear Goal

Contact the bank’s collections or customer service department and explain your situation. Use a calm and professional tone, emphasizing your willingness to resolve the issue. For example:

“Hi, I recently reviewed my ChexSystems report and noticed an outstanding balance with your institution. I’d like to resolve this matter and see if we can come to an agreement that works for both of us.”

From there, ask if they are willing to accept a reduced payment to settle the debt. If you can’t pay the full amount upfront, request a payment plan with terms you can manage.

Step 3: Document Everything

If the bank agrees to a settlement or payment plan, ask for the agreement in writing before making any payments. The document should clearly outline:

• The agreed settlement amount.
• A statement confirming that the account will be updated as “paid” or “settled” in ChexSystems.
• Any payment deadlines or terms.

Keep copies of all correspondence, including emails, letters, and proof of payment. This documentation protects you in case there’s a dispute later.

Step 4: Follow Through on Your Agreement

Once you’ve reached an agreement, make payments as promised. Late or missed payments could jeopardize the settlement and keep the negative mark on your record.

Step 5: Confirm the Update on Your ChexSystems Report

After settling the debt, check your ChexSystems report to ensure the bank updated the information as agreed. If the update hasn’t been made, contact the bank and provide copies of your agreement and payment records.

Non-ChexSystems Banking Options

If disputing your ChexSystems report doesn’t resolve your issues, you can still access banking services. Some banks and credit unions don’t use ChexSystems, so you can open an account even if you have negative marks on your record.

Conclusion

Getting out of ChexSystems may feel overwhelming at first, but with a clear plan and consistent effort, it’s entirely possible to clean up your record and move forward. By disputing errors, negotiating with banks, and exploring second-chance banking options, you can regain access to the financial tools you need.

Remember, every step you take brings you closer to financial freedom and control over your banking future. Stay proactive, keep detailed records, and don’t hesitate to seek help if you need it. A fresh start is within reach!