How to Reinstate Your Checking Account Closed by Chex Systems

If your financial institution informs you they’re closing your account because of information about you on ChexSystems, it’s important to understand what’s happening. ChexSystems is a consumer reporting agency that collects information about your history with financial institutions, similar to the information a credit bureau collects about your credit usage. While you will contact this agency during the process, it is the ultimate decision of your bank whether to reinstate your account, just as it is the lender’s decision whether to extend credit to you based on the information in your credit file.

Talk to your banker. You must know what the bank's policy is about reinstating checking accounts after closure. Find out if it requires the record removed or if a letter stating repayment of the applicable debt is sufficient.

Request your consumer report from ChexSystems.

Dispute incorrect information on your ChexSystems report. Once you submit the dispute form by regular mail or fax, ChexSystems will contact the bank that submitted the report against you to verify accuracy. According to the form instructions on the ChexSystems website, keep your statement under 100 words, free of profanity and relevant to the information in your consumer report for best results.

Follow up on the status of your dispute. Under the terms of the Fair Credit Reporting Act, the reporting bank must provide information proving its negative report against you within 30 days of the ChexSystems information request. Failure to do so results in the removal of the information from your consumer report. Wait 30 days and then contact ChexSystems for an update on your dispute.

Request a letter from ChexSystems stating it is removing the information in your report.

Learn how to repay outstanding balances that are correct on your report. Because ChexSystems can also act as a collection agency for charged-off bank accounts, find out whether you should pay the debt to ChexSystems or directly to your former financial institution.

Pay your charged-off account balance. Before you hand over the check for the full amount, verify the bank is willing to remove its negative report about you from ChexSystems. This is ideal, but not every institution will do so, even if it does report you paid the debt in full. If removal is out of the question, request an official, notarized statement from the company verifying you paid your debt with it.

Take all documentation to your current bank. The account reinstatement policy of each financial institution differs, so you may have to wait until information no longer shows on your report to use your account again. For some banks, the ChexSystems letter is sufficient.


  • Stay calm and polite in every interaction with ChexSystems and the reporting institution. Causing a scene does not encourage anyone to help you.


  • Always dispute anything on your report you believe is incorrect. Although paying the balance may be faster, victims of identity theft or clerical errors should not pay another’s charges.