How Do I Get Out Of ChexSystems

By | May 16, 2015

How do I get out of ChexSystems? One of the most asked questions when a consumer gets denied a checking account? Most consumers are not worried about how they got listed; all they want to know is simply how do I get out of ChexSystems and rightfully so, because once your listed, it is a brutal existance. Finding a second chance checking account at a local bank or credit union can be a daunting task as more than 90% of all banks and credit unions currently use ChexSystems or EWS or both to verify new accounts.

If your listed in ChexSystems, you have a couple of options, but unfortunately your not like the answer to “how do I get out of ChexSystems” simply because it is nearly impossible. Once your listed in the ChexSystems database, your listed for 5 years. Guilty or innocent, getting out of ChexSystems is going to be extremely difficult.

If your actually innocent and listed in ChexSystems due to a banking error and you can prove your innocence, you can dispute the erroneous listing and may be able to get it removed, but the process is going to be long and tedious and extremely frustrating. Chances are your going to want to give up, before you ever get it removed. You will find ChexSystems painfully slow and the customer service is non existant for the most part.

The only 100% guaranteed way to get removed is if your a victim of identity theft. You can then file a dispute using section 605 of FACTA (see below)

§ 605B. Block of information resulting from identity theft [15 U.S.C. §1681c-2]
(a)Block. Except as otherwise provided in this section, a consumer reporting agency shall block
the reporting of any information in the file of a consumer that the consumer identifies as
information that resulted from an alleged identity theft, not later than 4 business days after the
date of receipt by such agency of –
(1)Appropriate proof of the identity of the consumer;
(2)A copy of an ITR;
(3)The identification of such information by the consumer; and
(4)A statement by the consumer that the information is not information relating to any
transaction by the consumer.

This basically means that under section 605, the credit reporting agencies have 4 business days to remove negative information resulting from identity theft upon receiving the information provided above.

However, since you more than likely gave a copy of your drivers license and social security card to open an account, this is going to be a long shot, unless you are 100% a victim of identity theft. But once again, this will be a painfully slow process and the 4 days actually means nothing since they have the right to investigate and they have up to 45 business days to investigate and get back to you.

So, instead of trying to answer the question “how do I get out ChexSystems”, you should be focused more on finding a solid banking alternative such as a prepaid debit card, a bank that offers second chance checking accounts or a non ChexSystems bank. Below is a run down of the available options along with some recommendations.

Prepaid Debit Cards – Most people mock the idea, but prepaid debit cards can be a viable option and are often more affordable than the bank account you were denied. Prepaid debit cards can be used as a tempory solution until you get you get out of ChexSystems or find second chance checking at a local bank or credit union. However, a solid prepaid offer can also be the better than a bank account if the pricing structure and features are good.

Take a look at the options below as a temporary solution to manage your money until you get out of ChexSystems or get a bank account.

Rush Prepaid Card – The Rush Prepaid Debit card is one of the best banking alternatives available and is very affordable at only $5.95/mo for the Rush Unlimited Option. The pricing alone makes it worth it, especially when you compare with local banks and the big boys such as 5th 3rd or Citi Bank. With 100% guaranteed approval (as long as you complete required application steps) free online bill pay, direct deposit and some of the best fringe benefits for members only, you can not beat Rush for your banking alternative. Best of all, the Rush Card is FDIC insured like your local banks. Get more information and apply to get the Rush Card here.

Ready Debit – The Ready Debit Control Card is the cheapest prepaid card available. At less than$4/mo, you get free online bill pay, free direct deposit and awesome customer service. Add the FDIC insurance to protect your money, 100% approval guarantee (just complete the required application) and the longevity in the market and you have the perfect banking alternative to manage your money. Get more info and apply here.

Second Chance Checking Accounts – Second chance checking accounts are special checking accounts offered by banks that are willing to work with customers who have been listed in ChexSystems and/or Early Warning Services. If you can find a local bank or credit union offering second chance checking, watch the fees and make sure you fully understand any of the deposit holds and special considerations set in place for these types of accounts.

Non ChexSystems Banks – These are local banks and credit unions that do not use ChexSystems and/or EWS to verify new check accounts. These banks and credit unions are very hard to find and are getting more rare as time goes by. Check out the sites below for some help.

There are no arguments that being in ChexSystems is horrible, but at the end of the day, finding a legitimate answere to the question “how do I get out of ChexSystems” is going to be hard and you will end up stressing your self out. Take the easier route and find a solid prepaid offer or a second chance checking solution or local non ChexSystems bank or credit union near you.