How long does negative information stay on ChexSystems & EWS reports? (2024)

FAQs

How long does negative information stay on ChexSystems & EWS reports? ›

How long does negative information stay on ChexSystems and/or EWS consumer reports? Generally, negative information remains on ChexSystems and/or Early Warning Services (EWS) consumer reports for five years. Under the Fair Credit Reporting Act, certain negative information may be reported for up to seven years.

How Long Does a Report Stay on File? If there's an item on your ChexSystems report that you can't have removed manually, it usually takes five years for it to fall off your report on its own. Unfortunately, this may limit your options to second-chance bank accounts and prepaid debit cards.

Our current practice is to retain record of reported information for a period of five years from the report date unless the source of the information requests its removal or ChexSystems becomes obligated to remove it under applicable law or policy.

Under the provisions of the Fair Credit Reporting Act, adverse information—for example, collection actions, charge-offs, suits, and judgments—may remain on your credit report for seven years.

You must bring your account back to a positive balance as soon as possible. The bank may put a hold on your account after 21 days without bringing your balance positive. This will prevent you from using your debit card or accessing your account.

If you prefer, you may submit a five-year opt-out request by calling ChexSystems' opt-out request line at 877. OPTOUT 5 (877.678. 6885).

Can I open a bank account after being reported to ChexSystems? ›

Reported information usually is removed from your ChexSystems file after five years. Until then, you might be able to open a second-chance checking account. These accounts are designed for people who have a record with consumer reporting agencies such as ChexSystems.

SoFi, Capital One 360, Chime, LendingClub and Varo are all banks that don't use ChexSystems, which may provide a second chance to people whose ChexSystems history is not favorable.

Like most other negative information on your ChexSystems reports, the record of paid liens and evictions can stay on for seven years. Bankruptcies, however, can remain on both your credit reports and your ChexSystems reports for up to 10 years.

Most negative information generally stays on credit reports for 7 years.

In general, most debt will fall off of your credit report after seven years, but some types of debt can stay for up to 10 years or even indefinitely. Certain types of debt or derogatory marks, such as tax liens and paid medical debt collections, will not typically show up on your credit report.

2) What is the 609 loophole? The “609 loophole” is a misconception. Section 609 of the Fair Credit Reporting Act (FCRA) allows consumers to request their credit file information. It does not guarantee the removal of negative items but requires credit bureaus to verify the accuracy of disputed information.

In most cases, people quickly eliminate their negative bank balance by simply depositing the amount needed to get their account back in good standing. However, there are certain consequences that your bank may impose, especially if you consistently have a negative bank balance, such as: Overdraft fees.

Key takeaways

ChexSystems is a specialty consumer reporting agency that tracks consumers' deposit and debit history, similar to a credit bureau. Overdraft fees are a major contributor to negative reports on ChexSystems, and can result in being denied a bank account.