Chexsystems Dispute Process

[beedix]

I'm a little confused by a letter I received from Chex. I disputed an entry on the report and sent CMRR.

 

On the same day as I received the green card back, I received a very generic letter stating that my "file has been forwarded to the appropriate personnel for handling". Then it goes on to talk about "re-investigation".

 

So are they investigating right now? Or do I need to follow up again asking them to investigate?

 

Lastly, the account in question was a BOFA checking account that I closed in 2005 with a zero dollar balance. Apparently, they felt differently as they hired a CA to collect $250. I disputed it as such on my credit reports and it was immediately removed. It's listed as "Account Abuse". I never wrote an NSF check or abused the account in any way. What exactly does this mean?!?! In the case of my EX and TU reports, I disputed it as never having an amount owed.

 

 

Thanks!

[mca]

The letter they sent to you is a form letter that they send to everyone. Definitely send in letter 2. Account abuse and fraud are anything the banks want them to be. They are vague indicators that are used. You can definitely dispute based on the account abuse indicator being used

[beedix]

So is this second letter a request for them to "re-investigate" (assuming that they did one in less than a day!) or is this just a repeat of the first letter with the initial request to investigate?

 

Thanks for the help!

[mca]

I would send it in assuming that they investigated

 

Letter # 2 (Send this 2nd letter if you receive a letter from Chexsystems saying your account was verified as "legitimate" by ChexSystems)

 

Your Name

Your Address

Chexsystems Consumer Relations

7805 Hudson Road

Suite 100

Woodbury, MN 55125

Date

RE: Consumer ID # (your consumer ID # here)

 

Consumer Relations Dept.:

This letter is in response to your recent claim that (Name of Bank) has verified that I have an unpaid debt with them. Yet again, you have failed to provide me with a copy of any viable evidence submitted by (Name of Bank). Be advised that the description of the procedure used to determine the accuracy and completeness of the information is hereby requested, to be provided within fifteen (15) days of the completion of your re-investigation.

 

Additionally, please provide the name, address, and telephone number of each person contacted at (Name of Bank) regarding this alleged account. I am formally requesting a copy of any documents provided by (Name of Bank), bearing my signature, showing that I have a legally binding contractual obligation to pay them. A bank clerk looking at their computer screen, seeing my name listed in their database is NOT verification or validation of any alleged debt.

 

Be aware that I am making a final goodwill attempt to have you clear up this matter. The listed item is entirely inaccurate and incomplete, and represents a very serious error in your reporting. This report is SEVERELY (if not completely) restricting my banking abilities.

 

 

Failure to comply with federal regulations by credit reporting agencies are investigated by the Federal Trade Commission (see 15 USC 41, et seq.). I am maintaining a careful record of my communications with you for the purpose of filing a complaint with the FTC and the state of Missouri Attorney General's office, should you continue in your non-compliance. I further remind you that, as in Wenger v. Trans Union Corp., No. 95-6445 (C.D.Cal. Nov. 14, 1995), you may be liable for your willful non-compliance.

 

Failure on your behalf to provide a copy of any alleged contract or other instrument bearing my signature will result in a small claims action against your company. I will be seeking $5,000 in damages for the following:

 

1.) Defamation

2.) Negligent Enablement of Identity Fraud

3.) Violation of the Fair Credit Reporting Act

My contact information is as follows:

 

Your Name (printed or typed, not signed)

SSN

Address

Cc: (insert lawyer's name here)

 

simplified letter 2 (some prefer)

 

 

Quote:Date:

 

CMRRR #XXXXX

 

Dear Chexsystems:

 

After reviewing the file that you maintain under my ss# XXX-XX-XXXX and your response claiming verification, I see that you are still reporting incorrect, or inaccurate information. Please delete immediately.

 

Name: Bank

Date reported:

Account Number: XXXXXXXXXX

 

You state the account was verified and updated, yet you did not provide me with the documentation used to verify this. Further more, you completely disregarded the "reason" for closing. It currently states that it was closed for "Account Abuse", yet there is no justification for such a status. This should be removed immediately as it is preventing me from opening a bank account.

 

You have 30 days to verify this information and to provide me with a document bearing my original signature. If you cannot, I am demanding removal under the FCRA.

 

 

Sincerely,

[beedix]

Ok, so after sending my letter, they updated the entry to reflect that it has been paid in November of 2008. "Reported For: ACCOUNT ABUSE. ANY AMOUNTS OWED HAVE BEEN PAID". "Paid In Full/Settled In Full Date: 11/xx/2008".

 

As I stated in my letter, BOFA was paid in full and the account was closed in good standing in 2005.

 

The date reported shows 09/01/2005.

 

Is this an attempt by BOFA to increase the length of time this is reported?

 

Should I now shift my efforts to going after BOFA? Or give Chex one more shot at correcting the issue?

 

Thanks

[mca]

There is a SET date for when your 5 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 6 months (180 days) to that date (month and year as best you can).

Your 5 year reporting period begins the MONTH that is 6 months after your date of first delinquency.

Add 5 years to that month and year and that is when the listing SHOULD fall off of your credit report.

 

If an agency, ANY 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 CRA to allow that change to be made.

 

 

Again, you are looking for any type of inaccuracy you can hold them accountable for. The FCRA specifies that only accurate information can be reported, and it provides a time requirement for reporting negative information. Banks cannot wait and report negative accounts when they want to. If they notified you by mail, they need to have reported you to chexsystems within 30 days to the date of the letter.

 

What does your Chex report say? Does it indicate a specific dollar amount is owed, or does it list NSF Activity, Account Abuse, Fraud etc. If the report says NSF abuse, or fraud, was there a negative balance on the account? Has it been paid? The idea is to catch them reporting an inaccurate amount.

 

When was the entry added to your Chexsystems report? If the account became negative, when was the first month it was negative? What month was it closed and when did the bank report it to Chexsystems? This helps determine when the five year clock should start ticking and when the account should have been reported by the bank.

 

Were you the primary account holder? If not, did you ever sign a signature form or use the account? Chexsystems is subject to the same rules and regulations as set forth by the FCRA. Ask for origional copies of your signature, etc.

 

Another avenue to go if you cant get your item removed is to then dispute directly with the bank. This has worked out for many people on chexsystems. (mainly when the money is paid in full) Being listed in chexsystems can SEVERELY (if not completely) restrict your banking abilities. They can be held liable for multiple FCRA violations if the information they have on you is not correct.

 

If the bank has made an error, send a Demand for Removal letter to a bank manager or executive, notifying them of their FCRA violation.

 

Examples: incorrect name, SSN, address, dollar amounts, date of last activity, date account first became negative.

 

Another angle you may want to consider is how you are reported. Does the report indicate:

-NSF

-Abuse

-Suspected Fraud

 

Chexsystems allows the vague "NSF" "ABUSE" AND "SUSPECTED FRAUD" flags because they are harder to dispute and remove. There are no clear standards for what is considered NSF, ABUSE, or FRAUD. They can mean anything a bank wants them to. What proof do they have to flag an account NSF, ABUSE, or FRAUD?

 

I would send to the following and also CC a copy to the branch manager where the account was opened

 

Mr. Michael S. Solender

Chief Legal Officer

Washington Mutual Bank

1301 Second Avenue

Seattle, WA 98101

 

 

SAMPLE LETTER FOR BANK

 

 

Name and Address of original bank

RE: Acct # [account number]

 

TO: Whom It May Concern:

 

I am writing regarding account # [account number], which I dispute.

 

Please be aware that any negative mark on my Chexsystems report for a debt I don't owe is in violation of the Fair Credit Reporting Act (FCRA). It shows a re-aged date on my report that is not accurate. You are also in violation for reporting " account abuse" there was no abuse to the account intended and your records are not correct.

 

If the debt described above has been resolved, I ask that you remove, or have removed, any derogatory marks from my Chexsystems, and Credit reports per the FCRA and send me confirmation that you have done so.

 

Please note that if you fail to respond within 30 days of receipt of this certified letter, I am prepared to take legal action against your company for causes of action including, but not limited to, defamation, fraud and violations under the Fair Credit Reporting Act.

 

By sending this letter, I am disputing both the validity of the alleged debt and the validity of your claims. This is my attempt to correct your records. Please be aware that any information I receive from you will be collected as evidence should any further action be necessary.

 

Your full name signed here

Your printed full name here

 

You can start by filing the following complaints

 

1.I would defintely write a letter to the corporate headquarters ..send the letter to the CEO if possible ... explain your story and how you feel as if you are being treated unfairly etc. This has helped many

 

 

2. http://www.federalreserveconsumerhelp.gov/?District=13

 

 

3. WHEN YOU MAKE A COMPLAINT TO THE OCC...GENERALLY THIS WILL GET THE BANKS ATTENTION VERY FAST !!! THEY DO NOT LIKE COMPLAINTS FROM THE OCC.

 

The OCC's Customer Assistance Group is ready to help customers of national banks with questions or complaints they have about their financial institution. CAG's toll-free lines are open Monday through Friday, 7:00 a.m. to 7:00 p.m., Central Time. You can reach one of OCC's Customer Assistance

Specialists by calling: 1-800-613-6743.

 

If You Have a Problem With a National Bank or its Operating Subsidiary

 

The OCC Customer Assistance Group (CAG) Top

The OCC Customer Assistance Group was created to answer questions, offer guidance, and assist consumers in resolving complaints about national banks and their subsidiaries.

 

The first step is to try to resolve a complaint directly with your bank or its operating subsidiary before involving an outside agency. If you are unable to do so or are uncertain about whether your complaint involves an organization that the OCC supervises and regulates, the OCC Customer Assistance Group will try to assist you.

 

General inquiries about banking laws or practices often can be answered on the phone or through email by a Customer Assistance Specialist. The specialist may also be able to suggest other ways for you to try to resolve your problem directly with the bank or its subsidiary.

 

http://www.occ.treas.gov/ConsumerComplaintform.pdf