ChexSystems is a consumer reporting agency that keeps track of your deposit accounts with banks and credit unions.
Since ChexSystems is similar to a credit reporting agency, like Transunion, Experian, or Equifax, you have the right to freeze your ChexSystems report.
When you freeze your ChexSystems report, you prohibit the ChexSystems from releasing any information without your consent.
5 Steps to Place a ChexSystems Freeze
Step 1. Visit the website ChexSystems.com.
Step 2. Input basic information such as your Name, Birthdate, Current Address and Social Security Number.
Step 3. Submit your ChexSystems freeze request online.
Step 4. ChexSystems will mail you a Personal Identification Number (PIN).
Step 5. Once you receive your PIN by mail keep track of it. You will need the PIN to for a temporary lift, removal, or change your personal identifying information.
Reasons to freeze your ChexSystems Report
A ChexSystems freeze will automatically result in a denial of account service if you attempt to open a new bank account.
Pros of a ChexSystems Freeze
- Protect against bank account opening fraud.
- Adding a ChexSystems freeze will provide another layer of protection against identity theft.
Cons of a ChexSystems Freeze
- Not all banks use ChexSystems, so a freeze won’t eliminate your risk.
Some people mistakenly believe a ChexSystems freeze will allow them to open a bank account with a negative banking history, it won't.
Unless you chose from banks that don't use ChexSystems, it will be difficult to bypass ChexSystems. The bank where you apply may simply request you unfreeze your ChexSystems record or flat out deny you if you refuse.
How to Remove the Security Freeze
If you wish to remove the ChexSystems security freeze, you can request to remove it temporarily or permanently at ChexSystems’ website.
1. You'll need your Personal Identification Number and Social Security Number.
2. Once you enter your PIN and SSN you'll have three options:
- Permanently remove your security freeze – A permanent lift may leave your ChexSystems information vulnerable. A permanent removal is not recommended if you have any reason to be concerned about the security of your information.
- Temporarily lift your security freeze – To apply for a bank account or other financial services that pulls ChexSystems reports, you may request a temporary “lift” to the security freeze to conduct business.
- Remove your temporary lift – You can specify how long you want the security freeze to be lifted—a day, week or more. Removing a temporarily lift put your ChexSystems report back on freeze mode.