Chexsystems works very similar to a credit bureau because banks and financial institutions will report information about their customers behavior. Your bank will report your account to Chexsystems if you have had your account closed with any unpaid fees or overdraft charges.
What is Chexsystems?
Chexsystems is essentially a method for banks to share information about problem customers. In other words, banks will check to see if you are listed with chexsystems before offering you a checking account.
Once you have a listing and chexsystems when you go to open a checking account the first step the new bank will take is to check and see if you are listed with Chexsystems. Occasionally you may get a checking account initially however the bank will always come back and take that away if you are listed with chexsystems.
Chexsystems Contact Information
Attn: Consumer Relations
7805 Hudson Road, Suite 100
Woodbury, MN 55125
How Long Will I Be In Chexsystems?
You will be listed in Chexsystems for 5 long years. This means for those 5 years you’re going to have to pay check-cashing fees and purchase money orders just to pay your bills. Experts estimate that the average consumer spends $357.53 on check cashing fees and money orders annually.
How Can I Escape Chexsystems?
Unfortunately there is an increasing trend of consumers being placed in Chexsystems due to credit card or debit card fraud. We have seen a rise in consumers that had their credit card information use fraudulently, notified their bank, and the bank conducted an investigation that ultimately claimed or found the consumer responsible for the fraudulent charges.
If you have been a victim of fraud and an uncooperative bank you do have some potential methods to remove a Chexsystems listing however it is going to require you to jump through some legal hoops and a visit to the courthouse to file a civil lawsuit.
We believe that some banks have instituted policies and procedures that assume all consumer fraud complaints are not legitimate complaints. This in turn has left many consumers very frustrated and without a checking account, all do to the banks not following up with many advertisements of $0 fraud liability claims.
Below we would like to share a real story of a young man whom we are acquainted with that shared his nightmare experience with us that left him $700 in debt and with a listing in Chexsystems all due to his ATM card or bank debit card being used fraudulently. The story below was provided and written by this young man and it is written in his own words.
How Bank of America Stole $700 and Fraudulently Reported Me To Chexsystems
I went out to Las Vegas on vacation with my brother, his wife, and their son. I was going so I could babysit my nephew because, my brother had purchased tickets to an event for his wife and him to attend a Country Music Awards Ceremony. On the first night in Las Vegas my Bank of America debit card information, my cell phone, and my hotel key were stolen.
Come to find out the criminals withdrew $700 from my bank account (the daily withdrawal limit) that night! When I reported this fraud to Bank of America they credited the stolen money back to my account and said they were going to investigate the dispute.
I offered to contact the hotel we had stayed at and where this fraud had taken place as I’m sure they still had the video evidence to prove that I was in my hotel room and in bed when these fraudulent transactions took place. The Bank of America service representative informed me that if I wanted to, I could file a police report but that it was not required.
Additionally she said that the withdrawal activity was consistent with fraudulent activity because the criminals had initially tried to withdraw $1,000, then another withdrawal attempt for $900, another withdrawal attempt for $800, and so on. In other words, it was clear and evident that somebody was intentionally trying to empty my bank account and get as much cash as they could.
About two weeks later Bank of America sent me a letter saying that my dispute was not legitimate and that I was ultimately responsible for this $700 fraudulent withdrawal transaction. Naturally, I called them and spoke to another customer service rep and again repeated my story in greater detail to try and show them how irrational, illogical, and out of character it would’ve been for me to have performed these fraudulent charges.
Especially after losing my cell phone to then decide to blow through $700 gambling in a matter of minutes. To make a long story short after four separate unsuccessful dispute attempts with Bank of America. I finally gave up. The reality is Bank of America did not hold up their end of the bargain on their advertisements and claims of providing card holders $0 fraud liability.
I am very suspicious of the policies Bank of America may have in place when it comes to handling fraud reports by consumers. In my opinion just based on the information Bank of America had available to them they could see and with an easy investigate reach the conclusion that this was a fraudulent transaction.
Just by looking at my account activity over the ten plus years as a Bank of America account holder, and having never filed a prior dispute, or even tried to withdraw $700 or such a large amount it seems that there is overwhelming evidence that the transaction was fraud. Through my frustration and multiple dispute attempts I had multiple service representatives from Bank of America tell me that the activity looked like fraud because of the multiple ATM transactions and that it appeared that someone was trying to empty my bank account.
Due to Bank of America being less than cooperative in my opinion, I am left with the feeling that Bank of America is operating on fraudulent claims to consumers offering $0 fraud liability, and the feeling that Bank of America has stolen $700 from me and fraudulently placed me in Chexsystems!
Thankfully there are some attorneys in the family and they advised me to file a small claims suit and that I must require the judge to make a ruling that Bank of America must contact Chexsystems and remove their report about me. Currently I am still awaiting a court date but would not suggest any Bank of America products to my worst enemy!
I wanted to share this story because I’m sure many other individuals have also been in similar position and have been put in Chexsystems because of a criminal fraudulently using their credit card. And the bank not properly following up and conducting a legit investigation.
This has been one of the most annoying experiences of my life, especially because of Bank of America’s unwillingness to listen to any reason, logic, or practical thought. They left me with the feeling that I had to prove to Bank of America, beyond a reasonable doubt, that my credit card was stolen.
Instead it is Bank of America’s responsibility to provide the necessary security to protect their customers from the many criminals that fraudulently steal credit card information every year. This is one of the biggest crimes in not just the US but world wide!
If you are currently in Chexsystems or awaiting a court date like myself I have found that the Account Now prepaid Visa Card is an effective way to avoid paying those annoying check-cashing fees and having to buy money orders!
This is a major Visa card and can be used just like one; you can rent a car, make purchases online, buy things over the phone. They don’t check Chexsystems and there is no credit check, thus making it the ideal Visa card for bad credit.
Account Now will give you free direct deposit and you can get free online bill pay. So instead of taking your check to the bank and paying check-cashing fee you can do it for free! Moreover to pay your bills just log-in to your online account fill in the business information, the amount of the payment, and the date you want it to be sent, and you’re done.
Get a FREE Credit Consultation