How to Write a ChexSystems Dispute Letter

ChexSystems reports are used by financial institutions to determine if an applicant has a good — and existent — banking history, like how lenders look at an applicant’s credit history.
Your clients may have errors in their ChexSystems report, but until they know how to access their report they could remain victims of fraud or clerical errors.
Learn how to help your credit repair clients dispute ChexSystems report errors and maintain financial security with a bank account.

Read on to learn:

Why ChexSystems dispute letters matter for credit repair clients
How to write a dispute letter to ChexSystems that works
What ChexSystem dispute letters can do for a client’s financial situation

When to use a ChexSystems dispute letter

ChexSystems is a consumer reporting agency regulated by the Fair Credit Reporting Act (FCRA) that reports your credit repair clients’ banking activity to financial institutions, and any other entities with a legal right to that information. ChexSystems only reports negative account information and, while it does not affect your client’s credit score, can keep them from opening an account with a bank or credit union.

How to get a ChexSystems report:

If your credit repair client was recently denied an account from a financial institution, they should request their ChexSystems Report, which they can get for free from ChexSystems. You can write a letter to ChexSystems (on behalf of your client) requesting the free report. Write a dispute letter after you understand what is on the report, and have verified with your client that the information is either incorrect or over five years old.

ChexSystems dispute letters:

Clear a client’s name when a client’s SSN or information has been falsely used by another person to open a checking or savings account
Help clients clear fraudulent or outdated negative account activity
Can remove bank fees and improve clients’ financial situations quickly by removing monthly fees

Clients with a negative ChexSystems report often pay fees to open bank accounts or aren’t able to open an account

Many clients are intimidated by the dispute process or get busy and don’t send the dispute letter

Clients with a positive outlook on their financial situation are more likely to stay persistent in paying down debt and work toward a great credit score

What do I include in a ChexSystems dispute letter?

Client’s information. This letter (like any other dispute letter) is coming from your client and should reflect their information, not yours as the credit repair company
Specific items from the ChexSystems report that your client disputes as unfounded and/or inaccurate, along with with dates and institution names
Quote the relevant section of the Fair Credit Reporting Act pertaining to credit agencies (ChexSystems is one)
Request an investigation