Second Chance Checking Blog

Unfortunately due to our economy it appears that a new consumer service(?) is on the rise. There seems to be new ChexSystems Removal services going around where companies are offering (for a fee of course) to remove your negative information from ChexSystems. Now, I am not going to come right out and call these ChexSystems removal services a scam, but consumers should beware.

ChexSystems is one of the most unrelenting and unfriendly businesses when it comes to consumers. The only ways to have information removed from ChexSystems is either time (currently 5 years per reported occurance) and if the reporting bank requests to have the information removed. Also, keep in mind that the reporting bank request must come from Loss Prevention and the request will not be accepted if made by a local branch manager.

When the request is made, there are several factors that play in to the removal request. ChexSystems will look at the following to determine if removal if an option

• Severe abuse or fraud or suspicion there of
• Amount of closed accounts on your ChexSystems report
• Do you still have a relationship with the reporting bank
• Has the request come from the Loss Prevention team of the requesting bank

Once all of the steps above have been taken in to consideration, the information may then be removed.

So as you can see, having something removed from your ChexSystems report is very difficult and must come from the appropriate channels. Unless the company is going to work as intermediary between you and the bank, and unless they have access to and can convince the banks loss prevention department to remove the information; they are not going to be any more effective at removing negative information from your ChexSystems report than you will be.

If you do desire to have someone work on your behalf, make sure that you get all promised results in writing before your pay any money and that there is a written 100% money back guarantee.  If you would rather not deal with the headache, find a good bank offering a second chance checking account and stop worrying about ChexSystems. Good luck.

Bank of America has revealed how and why they use ChexSystems. In an interview with The Consumerist, a Bank of America VP spoke anonymously about how and why they use ChexSystems.

The story stems from Bank of America denying and basically banning an individual from doing business with the bank, but never giving the young man an explanation as to why. It appears that James has good credit and other than a reporting mistake from either ChexSystems or his credit report, the bank would have no reason to not do business with Jesse. Read more here.

Unfortunately, it looks like Jesse may have to find banks offering second chance checking accounts in Connecticut due to the arrogance and stupidity of Bank of America.

Stuck in ChexSystems or just want to know what they say about you? You are entitled to a FREE ChexSystems report every 12 months just as you are entitled to a free annual credit report every 12 months.

Under the (FACTA) Fair and Accurate Credit Transaction Act amendments to the (FCRA) federal Fair Credit Reporting Act, you are entitled to a free copy of your consumer report from ChexSystems once every 12 months. To get your free ChexSystems report, click here.

If you have been denied a checking account, it is due to either bad credit or you have been added to the ChexSystems database. While the bad credit is self explanatory, you may not know about ChexSystems. ChexSystems is a database of individuals that have written bad checks or worse and unfortunately, ChexSystems is unforgiving.

If your name is listed in the ChexSystems database, then you will find it difficult (if not impossible) to open a checking account. Life with out a checking account can be tough. You will find it difficult to pay bills, deposit your pay check and you will end up paying exorbitant cash checking fees.

So what is a consumer to do? Well fortunately there are banks that offer second chance checking accounts to consumers who are listed in ChexSystems. For most banks or credit unions, you will need to repay the debt that caused you to get listed and clear up any other discrepancies that you may have. While there is not a guarantee, you should be able to find a bank for you. Click here for a free directory of second chance checking banks.