I need to confirm that when a bank reports a charged-off account to Chexsystems - Is the bank required to remove the charged-off information from Chexsystems after 7 years (7 years and 180 days)?

Hello - Seeking confirmation that I am correct in my thinking? Anyone weigh in ----

When I was opening new accounts and calling Chexsystems, I was told that the only way to remove was for the customer to pay off the debt. It never went away.

I thought Chexsystems was a consumer reporting agency and had to comply with the Fair Credit Reporting Act requirements -

§ 605. Requirements relating to information contained in
consumer reports [15 U.S.C. § 1681c] (4) Accounts placed for collection or charged to profit and loss which
antedate the report by more than seven years.

Is that not correct!

It is correct.
Check out their website, they answer your question.
ChexSystems

Thank you.

*The bank is not obligated to "remove" the information from ChexSystems - only obligated to report if the charged-off account balance has been "paid."

ChexSystems is NOT obligated under the FCRA to abide by the 7 year time frame for reporting of a charged off account (?)

As a CRA they're required to follow the 7 year purge- however looks like their practice is to remove at 5. The bank furnishing the information isn't required to remove it from ChexSystems in order to follow FCRA requirements, that's on Chex. The bank furnishing data will need to update if the balance is paid.

Thank you. I did not see the mention of the five (5) year removal. Appreciate your comments.