ChexSystems is a database that keeps track of all the financial records of banks and other financial institutions. If your bank account has been closed because of too many bank account closures, ChexSystems will keep this information and it will stay on your account until you do something to remove it.
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Why i got ChexSystems Freeze
A freeze will be placed on an account that has been closed for a certain length of time to prevent withdrawals from occurring.
Disadvantages of ChexSystems Freeze
A freeze on a ChexSystems account can result in an individual not being able to use their account for daily banking, which can be a huge disadvantage for them. This is because the freeze prohibits the account holder from making any transaction
With the right information, you can get your ChexSystems freeze removed
The first step to removing your ChexSystems freeze is to find out what information is on your account. You can do this by ordering a free credit report from annualcreditreport.com or contacting ChexSystems directly. Once you find out what information is on your account, you can work on removing it.
Also Read: What is a ChexSystems Consumer Report?
How to Prevent ChexSystems freeze
The only way to get a bank account after a ChexSystems freeze is to wait out the time-period. If you’re not currently in a position to open a new bank account, there are things you can do to prevent a ChexSystems freeze.
- Always maintain a minimum balance on your account.
- Avoid having any direct deposits or check withdrawals that are for more than $250.
- Make sure there are no pending or overdraft charges.