Sunday, November 22nd, 2009

If I pay my debt, will the Chexsystems 5 year clock start over?

debt clock
Harol R asked:


I have a debt in collections that Washington Mutual was charged off to a collections company.

I’ve been told that if I pay my debt, the “5 year” Chexsystems clock will start all over on the day I pay off the entire debt. Is this true?

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4 Responses to “If I pay my debt, will the Chexsystems 5 year clock start over?”

sophieb Says:
November 22nd, 2009 at 7:54 pm

“many years ago” I had that problem, paid the bill and was able to have good credit with my checks immediately and could get another checking account. I never heard of the “five year clock” before. Why not call Chexsystems and ask them so you get a correct answer.

stan c Says:
November 24th, 2009 at 2:23 am

Chexsystems is for checks, not consumer or retail collections. If it is Chexsystems, call them toll free @ 1-800-428-9623 and ask what the problem is. You can also run your free credit reports from annualcreditreport.com or call them toll free @ 1-877-322-8228 for all 3 free reports.

travelmaster Says:
November 26th, 2009 at 2:50 pm

once it is paid the report is paid but your name isn’t removed until
the 5 year has expired
but you would/could/should have an easier time opening a checking account
had the same problem (with first federal)
I paid them but my name is still the chex system file until 5 years are up
but the report says paid so my current bank let me stay

Mary A Says:
November 30th, 2009 at 12:34 am

If Payment is made to a debt that has been reported to chexsystems, can the 5 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 5 year range. You don’t see many banks updating entries to extend the reporting period once you pay.

And 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 5 year period expires, it does not matter. It must fall off.

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