When will I be removed from ChexSystems?

ChexSystems is a credit reporting agency the same as Equifax, Experian and TransUnion. They have the right to report up to seven years. ChexSystems has decided to remove all of those reported to them after five years, not seven.

There is a set date for when your five year reporting period begins and that date is SET IN STONE after the recent changes to the FCRA (Fair Credit Reporting Act). If you are wondering how to figure it out, here is how you do it:

Remember the month that you last paid on the account. Remember the month that you missed your first payment on the account (and subsequently missed every payment after that). Add six months (180 days) to that date (month and year as best you can). Your five year reporting period begins on the month that is six months after your date of first delinquency. Add five years to that month and year and that is when the listing should fall off of your credit report.

If an agency (including chexsystems), has changed that date on your credit report in order to keep the listing on there longer, it is illegal. This is re-aging a debt. Not only is it illegal for them to change it, it is illegal for the credit reporting agency to allow that change to be made.

If payment is made to a debt that has been reported to chexsystems, can the five year period start all over? Yes, it applies to Chexsystems - but it is not a common practice. Legally they could. But, I have found their practice is to adhere somewhat to their five year range. You don't see many banks updating entries to extend the reporting period once you pay. But yes technically they can start the five year period from the date that the last payment was made. This does and has happened to some people.

Once if falls off, if you would choose to pay it at that time, would it be updated and possible be able to be added back to the report? If there are payments and activity after the five year period expires, it does not matter. It must fall off.

Is there a chance that the five year mark has passed and they have not removed? Yes it happens all of the time. If your five year mark has passed and you are still reported and should not be, simply send chexsystems a request to remove you and they will. Make sure you send the letter certified mail so that you have proof that you made the request.