If you can't open a bank account because of ChexSystems, there are several No-Chexsystems banks that will give you a second chance.
When a bank reports you to ChexSystems, those records can hang over your head for 5 years. Unless you successfully engage in a ChexSystems removal strategy, 5 years is too long to go without a bank account.
Here is our list of the best No-ChexSystems banks.
15 Best No-ChexSystems Banks
2. Acorns Checking Account.
3. OneUnited Bank Checking.
4. Current Checking.
5. Albert Banking.
6. M1 Checking.
7. SoFi Checking & Savings.
8. Axos Bank Rewards Checking.
9. GTE Financial Go Further Checking.
10. Novo Business Checking.
11. NorthOne Business Checking.
12. Green Dot Bank.
13. Unify Financial Right Start Checking.
14. Chase Secure Banking.
15. US Bank Safe Debit Account.
Establish a financial relationship with a bank that does not use ChexSystems and rebuild your banking history.
No-ChexSystems Banks Benefits & Features
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Why ChexSystems Exists
ChexSystems is designed to help banks identify fraudulent activity. It allows banks to report consumer banking activity that's considered negative as well as consumer banking habits and activities, for example:
- You fail to pay an overdraft fee for as little as $5, can end up in ChexSystems.
- Any banking account closures including bank closures with negative balances.
- Any returned (bounced) checks.
- Number of inquiries that have been made when you apply for a bank account and in what time frames.
- How many check orders you have placed and how often.
ChexSystems Removal Strategies
ChexSystems removal should be considered because even if you pay the bank in full, the bank must update ChexSystems but ChexSystems is under no obligation to remove the record.
ChexSystems is consumer reporting company. If you find information in your consumer report that you believe is inaccurate or incomplete, you have the legal right to dispute the report’s content with the consumer reporting company and the bank that shared the information to ChexSystems.
Under the Fair Credit Reporting Act (FCRA), ChexSystems or the bank that reported you has to verify the negative mark within 30 days or delete it from your ChexSystems report.
Here are several ChexSystems removal strategies:
1. Dispute directly with ChexSystems. Request verification from ChexSystems:
- Gather the facts and include specific information as to what you are disputing and an explanation of the basis for your dispute.
- Request that ChexSystems validate the information being reported, by contacting the bank. If the bank provides ChexSystems with any documentation connected to your signature, request that ChexSystems send you copies.
- Let ChexSystems know if the bank cannot furnish documentation with your signature, request that ChexSystems remove the account being reported.
2. Dispute directly with the bank. Request debt validation from the bank.
- Request validation per the Fair Debt Collection Practices Act.
- Ask the bank to provide full validation under the law, to include copies of completed and signed documentation indicating you have a contractual obligation to pay.
- Per the Fair Credit Reporting Act, any debt which cannot be properly validated may not be reported to a consumer reporting company.
- Failure to remove inaccurate information will be documented as a violation of the Fair Credit Reporting Act for the purpose of pursuing legal remedies under consumer laws.
3. Negotiate a pay for deletion. The bank or credit union may be open to negotiating a pay off to clear your records. If they will not agree to remove you from ChexSystems, ask the bank to update the information in ChexSystems indicating that the debt has been paid. Be sure to keep copies of all the paperwork documenting the payoff.
4. Bankruptcy. If you have filed bankruptcy, ChexSystems will remove your records.
5. Make complaints. File complaints with one or several of the banking regulators:
- Office of the Comptroller of Currency (OCC)
- Consumer Financial Protection Bureau (CFPB)
- Federal Trade Commission (FTC)
- National Credit Union Administration (NCUA)
- Your State's Attorneys General Office
- Your State Banking Commission
How to get your ChexSystems report online
You are entitled to request a copy of your ChexSystems Report at your request, once every 12 months. However, due to the COVID-19 Pandemic, you can get your ChexSystems report online for free request 3 times per every two-week period.
