A bank is a money utility establishing the nations’ wealth consisting of the rules and regulations that should be followed and applied. Anyone who fails to do so will face necessary actions with the offense they have committed.
As a process, it is bound with a system that provides different functions to help the bank accomplish the Work smoothly and properly. The unity of the related member will help the bank achieve its necessary development to best serve its client. Below is the information concerning ChexSystems and how it functions.
How does ChexSystems Work
ChexSystems is a national consumer reporting agency that tracks all your account history and activities during your credit activities. Most of the banks use ChexSystems to screen and collect information about your previous problems with your credit account to see if you are Crediful enough. When you apply for a new account, the bank will check your ChexSystems report if you are a risky customer or a desirable one.
ChexSystems exist to protect the banks from risky and abusive consumers that compromise the bank’s financial stability. Mishandling your bank account will lead you to a great challenge. Once you get reported with your issues to ChexSystems, the bank may deny your account application. However, banks have different rules depending on the status of your issues. They might give considerations and a second chance.
Reasons for your Denied Bank Account
If you get denied with your account, you probably have previous major issues with your banks that make other banks aware of your behavior. ChexSystems can keep your report for five years, which can be frustrating and discouraging. But you can still have hope you can review your report, and if you see any mishaps with your report and you can submit a dispute on ChexSystems’ online.
Negative Information on your Account
Your report will contain essential information about your banking status and activities that the banks reported to ChexSystems. Below are the following negative items that might be reported on your account.
● Alleged Fraud and Identity Theft
The account is used for illegal activities that can cause a major disturbance to safety and privacy.
● Unpaid Balances
Failure to pay your debts at a given date from a current or closed account.
● Bounced Checks or Overdrafts
The repeated occurrence of this activity is likely to be reported.
● Excessive Account Application
Applying multiple accounts for a short period may be a sign of unlawful activities.
● Automatic account closure
This report is due to the reported unpleasant activities happening in your account.
A mistake on your ChexSystems Report
There are times when the unintentional error occurs. It might be because of the unthorough examination or validation of the reported information. The system error can happen when there is a mismatch of the information during encoding.
When this error occurs, you can complain about the errors by requesting and reviewing your report and dispute them with ChexSystems along with your supporting documents that can serve as a basis for your claims.
Bad Credit Status
The negative reports on your accounts can affect your debit and credit scores. It will give you headaches along with acquiring plans of having products and services using your credit account. Before you can lend the services, money, and products, the creditor will always check your credit history and credit reports to see your record.
The importance of having a good credit reputation is you will have the opportunity to acquire certain services with good offers using your credit account without any issues and wasting your money in clearing the previous problems.
Another way, you can apply for a second chance bank account. This account is designed for those people who cannot get approved for a regular bank account. However, this account has charge fees and provides a limited-service that includes lower withdrawal and debit limits, no overdrafts or overdraft transfers, unavoidable monthly fees, and no check writing than the services provided with the regular one.
Resolving the Issues
If you do nothing, you will not achieve anything. It doesn’t mean that if you have denied an account, you can’t fix it anymore. Don’t lose hope. There is certain action that you can do with your reported issues. If you have unpaid debt, you can pay off your balance to the bank, and the bank will report it to ChexSystems to clear the account issue.
Under the fair credit reporting act (FCRA), if there is reported inaccurate information in your account, you have the right to initiate a dispute with ChexSystems to investigate and correct the information within 30 days. There are some steps you may take to avoid being reported to ChexSystems. As a customer, you should always be responsible for managing your account.
Aiming for a better life is not easy; You need to work it out. Whatever we do, it will always reflect on us, how the bank evaluates your reputation based on your account activity. It would be best if you were responsible enough with your spending as you will always be accountable for your actions.