Today's ChexSystems mini-course topic is ...
The Fair Credit Reporting Act ("FCRA")... The key to getting off ChexSystems!
The FCRA, a federal law, is the key to cleaning up your ChexSystems record and getting back to banking. Passed on May 25, 1970 and updated on January 7, 2002, this law was designed primarily to protect you, the consumer, from abuse by the credit bureaus (including ChexSystems).
It's estimated that over 80% of the reports maintained by the 3 major bureaus, Tran Union, Equifax, and experian contain inaccurate information. Information that STOPS good people like yourself from getting the things in life you need and deserve.
The FCRA gives you the right to literally challenge the validity of any information the bureaus maintain in your credit file. For example, let's say you have a bunch of NSFs on your ChexSystems report. Under the FCRA you have the legal right to challenge or dispute the accuracy of this information.
The FCRA states that any information contained in your report must be 100% accurate and verifiable or it must be *deleted*!
Think about that statement for a moment "100% accurate and verifiable". When you consider the fact that each bureau contains 10's of millions of reports that are constantly being updated, you begin to see just how easy it is for mistakes to occur.
Add in the factor for human error and your report is certain to contain incorrect information.
If the incorrect information is negative you can dispute it and get it removed. According to the FCRA, if the bureaus cannot verify an item within 30 days, they must delete it from your file.
All you have to do is take advantage of this inherent flaw in the system and you'll quickly begin to see a dramatic clean-up of your ChexSystems report. As your report gets cleaned up, banks will allow you to open a checking account with them again!
We do this with carefully crafted dispute letters like the one's you'll find in The Guide to Get Off ChexSystems.
If you haven't done so already, I urge you to get a copy of your ChexSystems Report today. The sooner you get started the sooner you'll see results.
They charge a fee of $8.00 per report, but if you've recently been denied a bank account, just send the denial letter to the bureau listed on the letter and you'll get a copy of your report without paying the fee. In the Guide to Get Off ChexSystems, we list a number of super-easy ways for you to get your Report (and quickly!).
Once you've received your ChexSystems reports, review them and begin challenging the negative items listed. Remember, if it's not 100% accurate, ChexSystems must delete it.
Tomorrow we'll go over the dispute process in more detail and I'll explain just how important this powerful technique is.
If you want to open a new bank account, and you are on the ChexSystems list, then "The Guide to Get Off ChexSystems" is required reading.
It will explain how to review your ChexSystems report and find the items to dispute first. (and how to do it).