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.
Refer to 12 CFR 1022 "Fair Credit Reporting (Regulation V)" for more information.
Last Reviewed:April 2021
Please note: The terms "bank" and "banks" used in these answers generally refer to national banks, federal savings associations, and federal branches or agencies of foreign banking organizations that are regulated by the Office of the Comptroller of the Currency (OCC). Find out if the OCC regulates your bank. Information provided on HelpWithMyBank.gov should not be construed as legal advice or a legal opinion of the OCC.
FAQs
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 do negative items stay on ChexSystems? ›
Usually five years. Although federal regulations allow ChexSystems to keep records for up to seven years, the agency keeps them for five. If you review your report and see any incorrect or out-of-date information, you can also submit a dispute on ChexSystems' website and with your financial institution.
How long does it take for ChexSystems to clear? ›
How long does the closed account stay on ChexSystems file? 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.
Is ChexSystems removed after 5 years? ›
Wait until the record drops out of the database
If all else fails, wait until blemishes fall off your record. 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.
How far negative can a checking account go? ›
There is no one-size-fits-all limit on how negative your bank balance can go. Some banks may set a discretionary limit on how much you can overdraw your account, while others may specify a hard limit.
Can you clear your ChexSystems report? ›
After you've paid off any debts that are causing a negative report, you can request that the credit union, bank, or collection agency remove the record from your ChexSystems report.
Can banks see if you owe other banks? ›
Then you may have a record on ChexSystems, a database that banks use to check whether potential customers have outstanding accounts at other banks. You also may have a ChexSystems report if you have a history of bouncing checks or mishandling your accounts.
What do banks look for on ChexSystems report? ›
Your ChexSystems report may also include things such as overdrafts, unpaid negative balances, and suspected identity theft or banking fraud. When you apply for a new bank account, the bank or financial institution in question can request a copy of your ChexSystems report.
What happens if you get reported to ChexSystems? ›
If you've had overdrafts and unpaid fees, they may be included in your ChexSystems report. While your ChexSystems report likely won't affect your credit scores, it may impact whether a bank or credit union will approve your application to open a new account.
How do I get off the bank blacklist? ›
This might include paying off debts, maintaining good financial behavior, and rebuilding creditworthiness. Once the debts are settled or resolved, the blacklisting or associated fees may eventually expire or be removed, depending on the bank's policies and credit reporting regulations.
All consumers who reside in the United States have the right to place a security freeze on their file. A security freeze is designed to prevent approval of checking, savings, credit accounts, loans, or other services from being approved in your name without your consent.
How do I check if my name is on ChexSystems? ›
How can I know if I've been reported to ChexSystems? Some may be unaware they've been reported to ChexSystems until they try opening a new bank account. The good news is that you can find out by reviewing your consumer disclosure report. Visit ChexSystems.com to request a copy of your report.
What happens if checking account stays negative? ›
If you have a negative bank account, that means you've taken out more money than was available in the account. Letting an account go negative can be costly, because banks charge fees when this happens. And your bank could close your account if it stays negative for too long.
What happens if your checking account is negative for too long? ›
A negative bank balance can lead to overdraft fees, non-sufficient funds fees, account closure, and credit impact. To avoid a negative bank balance, monitor your account, set up alerts, and consider linking accounts or using overdraft protection.
Will my check clear if my account is negative? ›
Depending on the terms of your deposit account agreement, the bank can either return the check unpaid or they can pay the check. If paying the check results in an overdraft, the bank can assess an overdraft fee against your account.
Do banks report overdrafts to ChexSystems? ›
It is similar to a credit bureau, but it tracks consumers' deposit and debit history, rather than their ability to pay bills on time. Generally, ChexSystems reports on blemishes in banking history, such as overdrafts and unpaid fees.
